U.S. equity futures edged lower early Thursday, hinting at a potential reversal from the prior session’s gains. Traders continued sorting through the implications of the Federal Reserve’s latest rate cut while trying to gauge where borrowing costs may head next. Sentiment also took a hit after cloud-services heavyweight Oracle (NYSE:ORCL) issued a lackluster outlook, while Adobe (NASDAQ:ADBE) beat expectations with its full-year forecast.

Futures lose ground

U.S. futures signaled a weaker open as markets absorbed the Fed’s third rate cut since September alongside Oracle’s earnings report.

As of 02:04 ET, Dow futures were down 213 points (0.4%), S&P 500 futures slipped 59 points (0.9%), and Nasdaq 100 futures fell 308 points (1.2%).

The pullback comes after Wall Street rallied the previous day on the Fed’s 25-basis-point cut, accompanied by a more measured tone from Chair Jerome Powell during his press briefing.

By Wednesday’s close, the S&P 500 had risen 0.67% to 6,886.68, near its late-October record. The Dow Jones Industrial Average gained 1.05% to 48,057.75, while the Nasdaq Composite added 0.33% to 23,654.16.

Dollar softens after Fed

The dollar continued to drift lower after touching a seven-week trough, pressured by Powell’s remark that he does not believe a “rate hike is anyone’s base case” in the months to come.

Derivative markets were pricing in additional easing in 2026, putting further strain on the greenback. At 03:13 ET, the U.S. dollar index slipped 0.1% to 98.65.

The central bank’s quarter-point reduction to a 3.50%–3.75% range came amid notable division among policymakers. The Fed had already delivered similar cuts in September and October.

Most officials appear reluctant to move again early next year, preferring to gather more data on a cooling labor market and on “somewhat elevated” inflation. Updated projections also suggested the Fed expects U.S. economic growth to accelerate in 2026.

Forecasts varied widely, reflecting uncertainty in an environment shaped by the Trump administration’s global trade realignment and a surge in AI-related investment.

Markets also remain focused on whom Trump may choose to succeed Powell when his term expires in May. White House adviser Kevin Hassett is reportedly the leading contender, and analysts widely believe he could push for the aggressive rate cuts long favored by the president.

As ING economists James Knightley and Padhraic Garvey wrote, “Current Fed members suggest just one further cut is their 2026 central projection, but with changes coming and the jobs market cooling the risks are skewed towards them cutting by more.”

Oracle guidance disappoints investors

Oracle shares plunged more than 12% in after-hours trading after the company issued a sales and earnings forecast that fell short of Wall Street expectations.

The firm also revealed capital spending will increase by an estimated $15 billion compared with earlier plans, intensifying concerns that huge AI-driven investments may not translate into rapid profit growth.

For the current quarter, Oracle projected adjusted earnings of $1.64–$1.68 a share, below consensus of $1.72. Expected revenue growth of 16%–18% also lagged estimates of 19.4%.

The company’s fiscal Q2 results likewise missed forecasts across revenue, operating income, and future cloud contract indicators.

Investor enthusiasm had already cooled following skepticism about Oracle’s heavy, debt-financed investment spree in AI—an enthusiasm that had only briefly surged after its blowout September results.

Adobe outlook exceeds expectations

In contrast, Adobe delivered upbeat guidance, suggesting its efforts to commercialize AI-powered features are gaining traction.

The company expects full-year revenue of $25.90–$26.10 billion, surpassing street estimates. Adjusted earnings are projected at $23.30–$23.50 per share, above consensus at the midpoint.

Adobe has spent several years integrating AI across its creative tools, helping users produce visual content more efficiently. CFO Dan Durn told Reuters that monthly active users for its freemium offerings rose 35% year-over-year to more than 70 million.

However, intensifying competition—spurred partly by the rapid adoption of AI—continues to pressure margins.

Trump says CNN should be sold as part of Warner Bros Discovery deal

In a new twist to the ongoing media consolidation saga, President Trump said that CNN should be sold as part of any transaction involving Warner Bros Discovery (NASDAQ:WBD).

Speaking to reporters at the White House, Trump argued that the network, a frequent target of his criticism, should change ownership regardless of which company acquires Warner.

It is “imperative that CNN be sold,” Trump said.

His comments follow Paramount’s $77.9 billion hostile bid for Warner, which would encompass assets such as CNN. Meanwhile, a previously announced Warner–Netflix agreement would apply only to the studio and streaming businesses.

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