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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.
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.
