U.S. stock futures declined Thursday after Oracle’s latest earnings report heightened concerns about the sustainability of the AI-driven market rally.
Futures on the S&P 500 (ES=F) dropped 0.8%, while Nasdaq 100 (NQ=F) futures fell 1.2%. Futures tied to the Dow Jones Industrial Average (YM=F), which includes fewer tech companies, declined 0.4%.
Oracle shares fell more than 10% after the company reported quarterly revenue below analyst expectations. The results raised investor concerns about demand for its cloud infrastructure products and the broader outlook for AI-related growth. Analysts cited Oracle’s increasing debt levels and its dependence on OpenAI (OPAI.PVT) to achieve its revenue targets as additional factors weighing on sentiment.
The declines follow a broader market gain on Wednesday after the Federal Reserve voted to cut interest rates for the third time this year, lowering the federal funds target range to 3.5%–3.75%. Fed Chair Jerome Powell indicated a more gradual approach to future easing and said a rate hike is unlikely at the central bank’s January meeting. He also described the U.S. economy as strong and said the Fed is “well positioned to wait and see” how conditions evolve.
Powell added that tariffs implemented during President Trump’s administration have contributed to inflation pressures.
Markets are also watching for a weekly update on jobless claims scheduled for Thursday. Delayed releases of wholesale inventories and trade sales data could draw more scrutiny than usual.
Earnings reports from Broadcom (AVGO), Costco (COST), and Lululemon (LULU) are expected soon, rounding out a volatile earnings season driven in part by AI and retail market activity.
