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Fed Cuts Rates Again: What It Means for You
11 Dec
Summary
- Federal Reserve enacted its third rate cut this year, lowering the target range.
- Oracle's stock dropped over 10% after its quarterly revenue missed expectations.
- Federal Reserve policymakers signaled a slower pace for future interest rate cuts.
US stock futures experienced mixed movements as markets processed the Federal Reserve's decision to implement its third interest rate cut of the year. The central bank adjusted the federal funds target range to 3.5%-3.75%, while also signaling a more measured approach to future rate adjustments.
In after-hours trading, Oracle's stock saw a significant decline of more than 10%. This sharp drop followed the software giant's announcement of quarterly revenue that failed to meet market expectations, raising concerns about the demand for cloud infrastructure. This development slightly dampened the earlier positive market sentiment.
Federal Reserve Chair Jerome Powell indicated that officials are in a favorable position to observe economic conditions. He also noted that tariffs implemented previously have contributed to inflationary pressures. Upcoming earnings reports from companies like Broadcom, Costco, and Lululemon are anticipated to provide further market direction.
