CNBC Daily Open: Investors Remain Optimistic Despite Fed's Hawkish Rate Cut
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
0mins
Should l Buy ORCL?
Source: CNBC
Federal Reserve Rate Cut: The U.S. Federal Reserve cut interest rates by a quarter percentage point, bringing the target range to 3.5%-3.75%, despite some members advocating for rates to remain unchanged. The Fed's projections indicate minimal future cuts, with only one expected in 2026 and another in 2027.
Market Reaction: U.S. markets rose following the Fed's announcement, particularly due to the unexpected decision to purchase $40 billion in Treasury bills, which is seen as a way to ease financial conditions and support market growth.
Economic Outlook: Fed Chair Jerome Powell expressed confidence in the resilience of the U.S. economy, raising the growth forecast for 2026 from 1.8% to 2.3%, suggesting a positive outlook for the remainder of the year.
Trump's Criticism of Europe: President Trump criticized European leaders as "weak" regarding their response to the war in Ukraine, highlighting tensions as Europe seeks to support Ukraine while feeling sidelined in peace negotiations involving the U.S. and Russia.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 157.160
Low
180.00
Averages
309.59
High
400.00
Current: 157.160
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Expenditure Risks: The lawsuit claims that Oracle's AI infrastructure strategy will lead to massive increases in capital expenditures without corresponding near-term revenue growth, posing serious risks to the company's financial health.
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- Financial Risks: The substantial increase in spending has raised serious concerns regarding Oracle's debt and credit rating, as well as its free cash flow and ability to fund projects, exacerbating investor anxiety about the company's financial health.
- Participation Details: Shareholders must register by April 6, 2026, to participate in the class action, and upon registration, they will receive real-time updates on the case's progress, highlighting the urgent need for improved corporate governance and transparency.
See More
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- Microsoft's Earnings Reaction: Despite reporting a 17% year-over-year revenue increase and a 21% rise in operating income, Microsoft's stock fell 17% due to concerns over its plan to spend over $100 billion on capex this year, indicating market skepticism about its AI investments.
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