US Stock Market Preview: Fed Rate Decision and Oracle Earnings Tonight; Mixed Pre-Market for Chinese Stocks.

Market Overview Before Federal Reserve Decision

On Wednesday morning, the market is cautiously awaiting the Federal Reserve's final interest rate decision of the year and Oracle's earnings report.

Futures Performance

U.S. stock index futures are slightly down:

• Dow futures down 0.08%
• Nasdaq futures down 0.16%
• S&P 500 futures down 0.07%

Pre-Market Movements in Tech Stocks

Star tech stocks are experiencing volatility:

• Microsoft (MSFT) down over 1%
• Tesla (TSLA) and Micron Technology (MU) up nearly 1%

Chinese Stocks Performance

Chinese stocks are mixed in pre-market trading:

• Beike (BEKE) up over 3%
• Baidu (BIDU) up over 2%
• Pinduoduo (PDD) down over 3%
• Bilibili (BILI), Li Auto (LI) down over 1%
• NIO down nearly 1%

SpaceX IPO Rumors

SpaceX is rumored to be planning an IPO next year, leading to activity in space-related stocks:

• Destiny Tech100 (DXYZ) up over 9%
• EchoStar (SATS) up over 5%
• Rocket Lab (RKLB) up nearly 2%

Oracle's Earnings Report

Oracle (ORCL) is slightly up in pre-market trading ahead of its Q2 earnings report, expected to be released early Thursday morning. Analysts express concerns about the company's high debt and negative free cash flow, regardless of earnings performance.

EU Investigation into Google

The EU has launched an investigation into Google's AI advantages, focusing on its use of web crawlers to obtain training data without compensation. This comes as competitors like OpenAI and Amazon spend significantly on licensing agreements.

TSMC Sales Growth

Taiwan Semiconductor Manufacturing Company (TSM) is up 0.58% in pre-market trading, reporting a 24.5% year-on-year sales increase in November, despite a month-on-month decline.

Intel's Fine Reduction

The EU court has reduced Intel's remaining fine from €376 million to approximately €237 million, significantly lowering the original amount imposed in 2009.

Palantir's Navy Contract

Palantir (PLTR) is up over 1% after securing a significant contract with the U.S. Navy to promote AI applications for submarine manufacturing.

GE Vernova's Revenue Guidance

GE Vernova (GEV) is up over 10% after raising its revenue guidance and stock buyback program to $10 billion, driven by strong electricity demand.

HSBC Settlement

HSBC Holdings (HSBC) is up over 2% as it prepares to pay around $300 million to settle a tax case in France related to the "Cum-Cum" scandal.

SpaceX Valuation for IPO

EchoStar (SATS) continues to rise over 5% as reports suggest SpaceX aims for a $1.5 trillion valuation in its IPO, potentially the largest in history.

GameStop's Earnings Miss

GameStop (GME) is down over 6% after reporting Q3 earnings that fell short of expectations, with total revenue of $821 million, a 4.5% year-on-year decline.

AeroVironment's Earnings Guidance

AeroVironment (AVAV) is down over 4% after reporting a record revenue but lower-than-expected adjusted EPS and guidance for the upcoming year.

Federal Reserve Meeting Expectations

The Federal Reserve is expected to announce a rate cut tonight, with market pricing suggesting a 95% probability. Analysts warn that if the market reacts "honestly," U.S. stocks may weaken.

Deutsche Bank's Caution

Deutsche Bank analysts caution that the market's optimism regarding future rate cuts may be misplaced, suggesting a potential for rate hikes next year.

Final Selection for Fed Chair

President Trump is reportedly moving forward with final interviews for the next Federal Reserve Chair, with Kevin Hassett among the candidates.

Howard Marks on AI Investment

Howard Marks of Oaktree Capital argues that the current AI investment climate differs from the internet bubble, suggesting a balanced investment approach.

Silver Price Surge

Silver prices have surpassed $60 per ounce for the first time, driven by industrial demand and supply constraints, with AI data centers contributing to this surge.