Why are stock futures flat before the Federal Reserve announcement?

Futures are stable because traders anticipate a quarter-point rate cut, but are awaiting Chair Powell's remarks on 2026 economic outlook.

What is driving the surge in small-cap stocks like the Russell 2000?

The prospect of lower borrowing costs due to anticipated Fed easing is fueling growth and profit margins for smaller companies.

What are the key concerns for Oracle's upcoming earnings report?

Investors are focused on Oracle's significant investments in AI infrastructure and the rising debt levels incurred to fund this expansion.

Home / Business and Economy / Fed Rate Cut Looms: Powell's 2026 Vision in Focus

Fed Rate Cut Looms: Powell's 2026 Vision in Focus

11 Dec

•

Summary

Stock futures show minimal change ahead of the Federal Reserve's interest rate decision.
Small-cap stocks are reaching all-time highs due to anticipated lower borrowing costs.
Oracle's earnings report is under close observation amid AI growth and debt concerns.

Fed Rate Cut Looms: Powell's 2026 Vision in Focus

Stock futures showed little movement on December 10, 2025, as the market awaited the Federal Reserve's interest rate announcement. Investors largely priced in a quarter-point cut, the third consecutive reduction, but attention was fixed on Federal Reserve Chair Jerome Powell's forward-looking statements regarding 2026.

Simultaneously, a notable trend towards small-cap stocks emerged, with the Russell 2000 reaching an intraday record high. This surge is attributed to expectations of lower borrowing costs and improved profit margins for smaller companies more sensitive to interest rate changes.

Ahead of its fiscal second-quarter earnings, Oracle faced intense investor scrutiny. The market is evaluating the software giant's aggressive expansion into AI infrastructure against its increasing debt levels under its new co-CEOs.