Tech Stocks Lead Market Decline Amid Fed Rate Cut and Oracle Earnings Miss
US equities retreated sharply Thursday as the Federal Reserve's tempered rate-cut outlook collided with disappointing earnings from Oracle. The S&P 500 futures slid 0.8% while Nasdaq futures tumbled 1.2%, signaling continued pressure on growth stocks.
Oracle's 10% after-hours plunge punctuated the session after reporting weak cloud revenue and raising spending forecasts. 'The AI infrastructure Gold rush isn't translating to equal dividends for all miners,' noted one Wall Street analyst, referencing Oracle's growing debt burden.
Wednesday's 25-basis-point Fed cut to 3.5-3.75% failed to buoy markets as policymakers signaled just one additional reduction through 2025. The 9-3 voting split revealed lingering inflation concerns that could constrain future easing.
