Dow futures declined over 100 points on Thursday as Oracle’s results reignited fears about high-flying tech stocks.
The futures tied to other Wall Street indices like the S&P 500 and Nasdaq were also trading in red even after the Federal Reserve’s latest interest rate cut gave a boost to US equity markets on Wednesday.
While the Fed’s accommodative stance provided temporary support on Wednesday, Oracle’s shortfall exposed underlying vulnerabilities in the tech complex.
5 things to know before Wall Street opens
1. The Federal Reserve delivered its third consecutive quarter-point rate cut on Wednesday, lowering borrowing costs to 3.5%-3.75%.
This move signals the central bank’s effort to support a weakening job market, though divisions run deep within the committee.
The decision came with a 9:3 majority, with two members voting for holding the interest rates, while Trump appointed Stephan Miran, voting for a broader cut.
Inflation remains sticky above the Fed’s 2% target, constraining future easing. Markets are pricing in just one additional cut for 2026, suggesting the cutting cycle is approaching its end.
2. Oracle’s premarket crash triggered a broader AI sector bloodbath Thursday morning.
The database giant plunged 11-12%, raising fresh doubts about whether lavish AI spending can justify sky-high valuations.
The damage rippled across the entire complex as Nvidia dipped 1.5%, CoreWeave tumbled 3%, and even chip-making peers Broadcom and AMD felt pressure.
What spooked investors wasn’t just Oracle’s missed revenue; it was management’s bombshell forecast that capex would surge to $50 billion annually, nearly $15 billion higher than expected.
3. After the Fed’s rate-cut decision, Wall Street is looking at the next set of key economic data.
Thursday’s economic calendar is packed with data that could reshape market sentiment.
Jobless claims headline the morning releases at 8:30 AM ET, with economists expecting claims to rise to 220,000 from 191,000 the prior week, a meaningful uptick that could signal labor market softening.
The trade deficit is projected to widen to $62.5 billion from $59.6 billion, reflecting persistent import demand despite tariff concerns.
4. Silver’s explosive run in 2025 isn’t slowing down.
The so-called “devil’s metal” surged to a record $62.88 per ounce this week, doubling in value since January as the market continues to grapple with a deep structural supply shortage.
Some industry veterans are calling for much higher levels and even predicting that silver could climb to $100 per ounce.
There’s plenty feeding the bullish narrative, like five straight years of supply deficits, rapidly rising demand from AI hardware and solar manufacturing, and a gold-silver ratio.
5. The global stocks experienced a whipsaw session on Thursday as gains from the Fed’s third rate cut evaporated after Oracle’s earnings disaster.
Japan’s Nikkei initially rose but closed down 0.9%, weighed down by SoftBank’s 5% plunge on AI concerns and yen strength pressuring exporters.
Hong Kong’s Hang Seng fared better, rising 0.8% in early trade, buoyed by tech recovery hopes.
Europe mirrored the tech carnage as STOXX 600 slipped 0.2% for a third consecutive loss as SAP fell 2.8% and ASML declined 1.2%, overshadowing relief from Powell’s hawkish-cut messaging.
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