US Futures Drop as Oracle Slumps

On Thursday, US stock futures experienced a significant decline following Oracle's underwhelming earnings report, which stirred renewed doubts about the profitability of artificial intelligence investments. Specifically, Dow futures fell by 0.5%, while futures for the S&P 500 and Nasdaq 100 decreased by 0.8% and 1.1%, respectively. Oracle's stock plummeted by more than 11% in after-hours trading after failing to meet revenue expectations, providing tepid guidance, and forecasting a $15 billion increase in expenditures beyond previous plans. In contrast, during Wednesday's regular trading session, the Dow rose by 1.05%, the S&P 500 advanced by 0.67%, and the Nasdaq Composite increased by 0.33%. These gains followed the Federal Reserve's decision to implement its third quarter-point rate cut of the year, paired with a less stringent outlook than the market had foreseen. Moreover, Fed Chair Jerome Powell suggested that further rate hikes are unlikely and expressed continued confidence in the durability of the US economy.