"Cuts are ordinarily good news for the stock market, lowering bond returns and making it cheaper for companies (i.e. stocks) to borrow money, thus boosting their profits and helping their share prices to rise. This week's news was widely anticipated, however, so investors aren't reacting as positively as you might think. The more so because a "dot plot" showing the likelihood of future rate cuts suggests December 10's cut might be the last for a while."
"The software company announced powerful profits in its fiscal Q2 2026 report last night, beating expectations by 62 cents with a profit of $2.26 per share. Revenue, however, fell short of expectations at $16.1 billion, and this morning Oracle stock is down 14%. On guidance, Oracle said its Q3 earnings will be just about what Wall Street was already expecting, $1.70 to $1.72 per share, with revenue rising about 20% year over year - barely half what Wall Street was hoping for."
The Federal Reserve lowered its target interest rate by 25 basis points to no lower than 3.5%. Markets reacted modestly because the cut was widely anticipated and a "dot plot" implies few near-term additional cuts. Experts expect one cut in 2026 and one in 2027, ultimately approaching about 3% over nearly two years. Oracle reported fiscal Q2 2026 EPS of $2.26, beating estimates while revenue missed at $16.1 billion, and its stock fell 14% despite guidance roughly matching expectations. Adobe beat fiscal Q4 estimates with $5.50 EPS and $6.2 billion revenue and guided Q1 above consensus.
Read at 24/7 Wall St.
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