"The Federal Reserve, as expected, cut rates again and indicated that another cut could come in 2026. Oracle Corp. ( NASDAQ: ORCL), which has been on fire this year, was hammered after the company missed earnings expectations and told Wall Street it has implemented a substantial jump in spending on AI data centers, which many investors feel is taking too long to translate into profit."
"Yields were mainly lower across the yield curve on Thursday as buyers returned. The prospect of another rate cut in 2026, plus a less hawkish tone from Chairman Powell in his prepared remarks on Wednesday, were both cited as reasons for the strength. Plus, the Fed announced it was resuming buying short-term Treasury securities to manage market liquidity. The purchases are intended to be a technical adjustment, not a change in the stance of monetary policy."
The Federal Reserve cut rates and signaled another cut could come in 2026. Futures traded mixed as the Dow and S&P closed higher while the Nasdaq fell, pressured by Oracle's earnings miss and increased AI data-center spending. Treasury yields fell across the curve as buyers returned, aided by a less hawkish tone from Chairman Powell and renewed Fed purchases of short-term Treasuries to manage liquidity. Oil and natural gas prices declined on oversupply concerns and restored Iraqi production, with Brent at $61.54, WTI at $57.88, and natural gas down to $4.23 amid mild weather forecasts.
Read at 24/7 Wall St.
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