Mixed Close on Wall Street as Oracle Sinks Almost 11%
The Fed delivered a widely expected 25-basis-point rate cut on Wednesday—its third in a row—bringing the policy range to 3.50%–3.75%.
Quick overview
- The Dow Jones rallied 1.34% following the Federal Reserve's 25-basis-point rate cut.
- The Nasdaq Composite fell 0.25% due to a significant drop in Oracle shares, which fell 10.83% after missing earnings estimates.
- Seven of the S&P 500's 11 major sectors finished higher, with materials and financials leading the gains.
- European markets also saw gains, with the STOXX 600 rising 0.5% amid concerns over tech sector valuations.
The Dow Jones rallied after the Federal Reserve’s rate cut, while the Nasdaq fell under pressure from a steep drop in Oracle shares.
Wall Street’s main indexes ended mixed on Thursday. The Dow Jones climbed after the Fed’s interest-rate reduction, while the Nasdaq was dragged lower by a sharp sell-off in Oracle.
The Dow Jones Industrial Average, made up of 30 major companies, rose 1.34% to 48,704.01 points. The S&P 500, which tracks the largest U.S. corporations, gained 0.21% to 6,901.00. The Nasdaq Composite slipped 0.25% to 23,593.86.
The Fed delivered a widely expected 25-basis-point rate cut on Wednesday—its third in a row—bringing the policy range to 3.50%–3.75%. In the press conference, Fed Chair Jerome Powell said no additional cuts should be expected at the start of 2026.
Despite the adjustment, markets—especially tech stocks—reacted negatively after Oracle missed analysts’ estimates, citing $15 billion in excess AI-related spending. Its shares fell 10.83%.
Seven of the S&P 500’s 11 major sectors finished higher, led by materials (+1.96%) and financials (+1.74%). Within the Dow, Visa (+6.1%) posted the strongest gain, while Coca-Cola (-1.57%) saw the biggest decline.
European Markets
Europe’s STOXX 600 rose 0.5% to 581.17 after a muted opening, as concerns resurfaced over stretched valuations in the tech sector following Oracle’s heavy AI-spending plans.
Major regional indexes also advanced, with France’s CAC 40 up 0.8% and London’s FTSE 100 climbing 0.5%.
At least 19 sectors in the STOXX 600 traded higher, supported by optimism after the Fed’s 25-bp cut. However, the central bank warned against further near-term reductions until there is more clarity in the labor market.
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