Dow, S&P 500, Nasdaq futures slide after Fed decision
US stock futures fell sharply on Thursday as investors assessed the Federal Reserve’s latest rate cut, which had fueled a late-day rally on Wall Street.
Contracts on the S&P 500 and Nasdaq 100 dropped 0.8% and 1.2%, respectively, while Dow Jones Industrial Average futures, which have fewer tech stocks, fell more moderately by 0.4%, News.Az reports, citing foreign media.
Software giant Oracle’s stock plunged over 10% after its quarterly revenue missed expectations, raising concerns about demand for its cloud infrastructure products. Investors are also wary of Oracle’s growing debt and reliance on OpenAI to meet revenue targets, highlighting broader worries about a potential AI bubble.
The broader market had risen on Wednesday after a split Fed voted to cut interest rates for the third time this year, lowering the federal funds target range to 3.5%–3.75%. Policymakers indicated a more gradual easing path in the coming months, with Chair Jerome Powell noting that a rate hike in January was unlikely and emphasizing the US economy’s strength. Powell also cited tariffs imposed under former President Trump as contributing to inflation pressures.
Market attention turns to the weekly jobless claims report on Thursday, while delayed readings on wholesale inventories and trade sales may also attract scrutiny.
Earnings season continues, with Broadcom, Costco, and Lululemon set to release results, adding to an unpredictable period for AI and retail investors.
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