Global stock markets show mixed results Thursday as investors weigh the U.S. Federal Reserve's recent interest rate cut against disappointing earnings from tech giant Oracle. While Indian benchmarks rallied, Asian and European markets largely retreated, and U.S. futures point lower ahead of the opening bell. ### Fed Rate Cut and Market Reaction The U.S. Federal Reserve cut its benchmark lending rate by 25 basis points to a range of 3.50-3.75 percent on Wednesday. This move was largely anticipated, and Fed Chair Jerome Powell hinted at the possibility of further cuts in 2026.^[1][2][3] This dovish signal initially boosted Wall Street, with the Dow Jones Industrial Average jumping 1.1 percent and the S&P 500 climbing 0.7 percent on Wednesday.^[4][5] However, the positive sentiment from the Fed's decision did not fully carry over to Thursday's trading.^[6][7] Indian equities, including the Sensex and Nifty, rebounded, ending a three-day losing streak. The Sensex climbed 426.86 points, or 0.51%, to settle at 84,818.13, while the Nifty gained 140.55 points, or 0.55%, closing at 25,898.55.^[8][9][10] Buying in auto, metal, pharma, and IT sectors fueled this rally.^[8][9] ### Oracle's Weak Outlook Drags Tech A major drag on global sentiment comes from Oracle Corporation. The software giant's shares tumbled over 12 percent in pre-market trading after its quarterly forecasts missed analyst estimates and the company announced a significant increase in annual spending, raising concerns about profitability in the AI sector.^{[11][6][7][12][13][14]} Oracle's weaker profit and revenue outlook, coupled with rising spending, heavily impacted regional markets.^[6] This news weighed on tech stocks across Asia. Japan's Nikkei 225 index fell 0.9 percent, with SoftBank Group Corp. dropping 6.8 percent due to its heavy investments in AI.^{[15][16][4][5]} South Korea's Kospi also ended down 0.6 percent, with chipmaker SK Hynix falling after a warning from the Korea Exchange about its stock price.^[16][5] China's Shanghai Composite Index declined 0.7 percent.^[15][16][4] ### Commodities and Currencies React In commodity markets, gold prices saw mixed movements. While some reports indicated gold prices eased from a near one-week high, others showed a modest gain.^{[17][18][19][6]} Spot gold fell 0.4 percent to $4,210.72 per ounce, while U.S. February gold futures rose 0.3 percent to $4,238.90.^[6] Silver, however, hit a record high, increasing by 1 percent to $62.39 per ounce, driven by strong industrial demand.^[20][19][6] Oil prices held steady or saw slight declines on Thursday. Brent crude traded around $62.16 a barrel, and U.S. West Texas Intermediate (WTI) was at $58.45.^{[21][20][22][23][15]} Geopolitical tensions, including a U.S. seizure of an oil tanker off Venezuela and reports of a Ukrainian strike on a Russian "shadow fleet" vessel, influenced prices.^[24][22] However, Rigzone noted that oil prices did not shift significantly on the Fed's rate cut, with fundamentals remaining the primary drivers.^[1] Monthly reports from the International Energy Agency (IEA) and OPEC are due today, which traders will watch for supply-demand insights.^[24][25][16] In currency markets, the U.S. dollar remained strong amidst heightened risk aversion, while the Euro and Pound faced pressure from economic concerns.^[26] The Yen saw a slight increase as investors sought safe-haven assets.^[26] The Hong Kong Monetary Authority followed the Fed, trimming borrowing costs to 4.00 percent.^[5] ### Key Economic Data and Earnings to Watch Several key economic data releases are scheduled for Thursday. The U.S. Department of Labor released its weekly initial jobless claims report, showing an increase of 44,000 to 236,000 in the week ending December 6.^[27] The advance seasonally adjusted insured unemployment rate was 1.2 percent.^[27] Other important data includes the September U.S. trade deficit and wholesale inventories, which were delayed by a government shutdown.^[28][25] Today also brings the Producer Price Index (PPI) at 8:30 AM ET and the Weekly Economic Index at 11:30 AM ET.^[29] Additionally, the Federal Reserve Bank of New York will release the DSGE Model at 9:00 AM ET.^[29] On the corporate earnings front, Ciena Corporation (CIEN) reported its first quarter fiscal 2026 operating results after market close on Thursday.^[30][31][32] The company announced fiscal fourth quarter 2025 revenue of $1.35 billion, up 20% year-over-year.^[32] Comtech Telecommunications Corp. (CMTL) also plans to release its first quarter fiscal 2026 results after the market closes.^[31] ### Pre-Market Activity and Broader Outlook U.S. stock futures for the S&P 500 were down 0.9 percent, and Dow Jones Industrial Average futures declined 0.5 percent, primarily due to Oracle's impact.^[15] Nasdaq 100 Futures slipped 0.8 percent.^[7] European markets also showed declines, with the Stoxx Europe 600 falling 0.2 percent.^[15] Traders are closely watching for further data on inflation and employment, as well as the path of future interest rate cuts. Vinod Nair, head of research at Geojit Investments Ltd, noted that the decline in U.S. 10-year yields suggests a moderation in future Foreign Institutional Investor outflows, which could support sentiment.^[8] However, concerns about AI-driven valuations and rising Japanese yields are impacting overall domestic sentiment in some Asian markets.^[8][5]

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