Stocks Slide as Oracle Spoils the Mood After Fed Cut: Markets Wrap
This article was published on December 11, 2025 at 04:53.
A globalStocks rally sparked by the Federal Reserve’s rate reduction fizzled after Oracle Corp.’s disappointing results weighed on tech shares. Investors shifted focus to what the Fed might do next year, keeping sentiment cautious.
Nasdaq 100 futures dropped as much as 1.6%, and a tech slump in Asia pulled the regional equity gauge off its early gains. S&P 500 futures were down about 1.1%. Oracle’s stock, closely tied to the AI boom and hyperscale data-center demand, plunged by more than 10% in after-hours trading after its second-quarter cloud revenue came in under estimates. Bitcoin also weakened, sliding over 3%, signaling a pullback in risk appetite.
The selloff in Asia followed a modest gain for the S&P 500 on Wednesday, which rose 0.7% after the Fed cut rates for a third straight time. Chair Jerome Powell conveyed optimism that the economy would strengthen as tariff-driven inflation fades. Notably, this meeting marked a rare split among policymakers, with dissenters on both sides of the spectrum and three officials opposing the decision—though the Fed still signaled a single cut in 2026.
“While the focus was on the FOMC, Oracle’s results were a critical test for the AI infrastructure trade,” said Billy Leung, investment strategist at Global X Management. “Oracle’s performance highlighted how closely data-center spending ties into AI momentum and added pressure for tech stocks.”
Asian technology indices fell more than 1%, while broader regional benchmarks slipped around 0.4%. Traders also weighed the impact of Mexico’s lawmakers approving new tariffs on regional imports. Meanwhile, the Philippines was poised to decide on another rate cut, potentially the fifth straight, underscoring a global backdrop of monetary easing.
In Japan, bond futures rose after an auction of 20-year government debt drew robust demand, reflecting higher yields attracting buyers amid fiscal concerns and the expectation of a Bank of Japan rate hike at its upcoming meeting.
The U.S. dollar generally firmed after a decline the day before, while oil markets pivoted on news that a sanctioned tanker bound for Venezuela was seized, raising potential supply disruptions and the risk of further tensions in the region.
Market participants described progress as “choppy.” The Treasury market saw a modest rally, with the two-year yield easing further after the Fed’s quarter-point cut and renewed market operations to support bank reserves. The 10-year yield also slipped, halting a prior upswing that had pushed yields to multi-year highs.
Powell pushed through the rate cut despite opposition from several voters and faced a broader dissent among regional Fed presidents who weighed in on the decision—an unusual level of resistance for a policy move. This fracture could foreshadow more difficult consensus-building in 2026, especially with a potential new chair at the helm.
Powell indicated policy actions had helped stabilize the labor market while keeping rates high enough to restrain inflation pressures. He stressed the importance of upcoming data and cautioned that household job readings could be distorted by recent government shutdown effects.
Nick Twidale, chief analyst at AT Global Markets in Sydney, described the momentum from the cut as uncertain for global markets. “Forward guidance felt less dovish than many investors anticipated, so we may see continued volatility as traders digest Powell’s remarks.”
Corporate headlines included: private equity firm TPG exploring options for APM Monaco, possibly selling a stake or pursuing an IPO; SK Hynix facing caution after a strong rally tied to expectations of a New York listing; banks expecting a smaller share of underwriter fees from Hong Kong listings despite a rebound in deal activity; and JD.com’s Jingdong Industrials Unit’s HK IPO underperforming its target. In Japan, large block trades surged as companies moved to reduce cross-shareholdings to boost governance. Chinese AI startup DeepSeek reportedly relies on Nvidia chips banned in China to develop an upcoming model, according to The Information. Coca-Cola announced that James Quincey will step down, with Henrique Braun, the COO, slated to take over at the end of March.
Key market moves snapshot:
- Stocks: S&P 500 futures -0.8% around mid-day Tokyo time; Topix -0.7%; Australia’s ASX 200 +0.2%; Hong Kong’s Hang Seng little changed; Shanghai Composite -0.5%; Euro Stoxx 50 futures little changed.
- Currencies: Bloomberg Dollar Spot Index essentially flat; Euro near $1.169; Japanese yen at 155.69 per dollar; offshore yuan near 7.0611 per dollar.
- Cryptocurrencies: Bitcoin -2.7% to roughly $89,921; Ether -4.5% to about $3,189.
- Bonds: 10-year Treasuries yield around 4.12%, down a touch; Australia’s 10-year yield down about 12 basis points.
- Commodities: WTI crude largely steady; spot gold dipped about 0.2% to around $4,218 per ounce.
This breakdown reflects the usual blend of macro policy shifts, earnings lets you gauge how far the AI infrastructure rally can run in the near term, and the ongoing tensions in global markets that can ripple through risk assets.
Notes: This summary borrows from Bloomberg reporting and market data as of the stated time.
