U.S. equity futures signaled a weaker start on Thursday, suggesting the market may surrender some of the gains logged in the previous session.

A sharp premarket decline in Oracle (NYSE:ORCL) is set to drag on sentiment, with the tech firm tumbling 13.1% before the bell. The slide follows the company’s fiscal second-quarter update, which delivered earnings above forecasts but revenue that fell short of expectations.

The disappointment has spilled over to other names tied to the artificial intelligence boom. Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) are also losing ground ahead of the open, reflecting revived worries about stretched valuations across the sector.

Traders are also parsing the Federal Reserve’s latest policy decision, which could contribute to fresh selling as uncertainty clouds the interest-rate outlook. The Fed cut rates by 25 basis points on Wednesday, but policymakers’ projections revealed wide disagreements over what comes next.

Stocks spent much of Wednesday drifting before gaining traction late in the session following the Fed announcement. Major indices finished the day in positive territory, reversing Tuesday’s choppy and mixed performance.

By the close, the Dow had surged 497.46 points, or 1.1%, to 48,057.75. The S&P 500 rose 46.17 points, or 0.7%, to 6,886.68, while the Nasdaq added 77.67 points, or 0.3%, to 23,654.16.

The late-session lift came after the central bank confirmed another quarter-point cut—its third in as many meetings—bringing the federal funds target range down to 3.50% to 3.75%.

Although most policymakers supported the move, three officials cast dissenting votes, marking the first split decision of this magnitude since September 2019. Fed Governor Stephen Miran favored a 50-basis-point cut, whereas Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid preferred no change.

Fresh economic projections underscored the internal divide. While the median outlook still anticipates only one more rate cut next year, the Fed’s “dot plot” revealed a wide range of views—from expectations of rates as low as 2.0% to 2.25% by the end of 2026 to projections calling for tighter policy.

The disagreements reflect the central bank’s challenge in balancing its mandates for maximum employment and stable 2% inflation.

Despite the mixed signals, some investors appear hopeful that rate policy could tilt more dovish under President Donald Trump’s expected Fed leadership changes.

“We’re not surprised to see near term optimism in the markets given that the Fed continues to cut rates even though the economy is growing,” said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.

He cautioned, however, that “the rose colored glasses may come off once investors realize that the path to lower interest rates may take longer – or may not materialize at all – to the extent that they believe it will.”

Sector performance on Wednesday reflected the shifting rate narrative. Homebuilding stocks jumped following the Fed announcement, lifting the Philadelphia Housing Sector Index by 3.1%. Transportation names also rallied, with the Dow Jones Transportation Average climbing 2.7%.

Gains were also notable among banking, computer hardware, and pharmaceutical shares, while software companies broadly retreated.

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