U.S. Stock Futures Decline as Market Awaits Fed Rate Cut Decision
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2025
0mins
Should l Buy ORCL?
Source: Newsfilter
- Rate Cut Expectations: Traders are pricing in an 89.9% chance that the Federal Reserve will announce a 25 basis-point rate cut at 2 p.m. ET today, which could lower borrowing costs to support the labor market but may also heighten inflation concerns.
- Lack of Economic Data: The absence of fresh economic data following the recent government shutdown, coupled with uncertainty over the Fed's leadership next year, adds to policymakers' challenges, potentially impacting future monetary policy directions.
- Volatile Index Performance: As of 5:33 a.m. ET, Dow E-minis fell by 80 points, S&P 500 E-minis dropped by 10 points, and Nasdaq 100 E-minis decreased by 59 points, reflecting cautious market sentiment ahead of the upcoming rate decision.
- Earnings Reports Impact: This week will see earnings reports from major AI-related companies, including Oracle and Broadcom, and market reactions to these reports could further influence stock market trends, especially amid uncertainty surrounding Fed policies.
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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: 156.540
Low
180.00
Averages
309.59
High
400.00
Current: 156.540
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.
- Class Action Initiation: Rosen Law Firm announces a class action lawsuit on behalf of Oracle Corporation stock purchasers from June 12, 2025, to December 16, 2025, indicating potential investor losses due to the company's misleading statements.
- Compensation Structure: Investors joining the lawsuit will incur no out-of-pocket costs, as the law firm operates on a contingency fee basis, thereby reducing financial risks for participants.
- Lawsuit Details: The lawsuit alleges that Oracle failed to disclose that its AI infrastructure strategy would lead to significant capital expenditure increases without corresponding revenue growth, heightening financial risks for the company.
- Law Firm Credentials: Rosen Law Firm is recognized for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, underscoring its expertise and reliability in handling such cases.
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- Stock Decline: Oracle's stock fell over 5% today, reflecting market concerns regarding its $300 billion deal with OpenAI, particularly amid uncertainties about OpenAI's profitability, which has diminished investor confidence in Oracle.
- CDS Surge: Oracle's credit default swaps (CDS) have soared due to worries about its financing capabilities, indicating investor skepticism about the company's ability to fulfill the capital investments required for its deal with OpenAI, further exacerbating downward pressure on its stock price.
- Potential Business Sale: Analysts speculate that Oracle may consider selling its healthcare software business, Cerner, to improve its financial position; however, given the current pressures, potential buyers are likely to negotiate aggressively, impacting the transaction's feasibility.
- Market Reaction: Although Nvidia is close to committing $30 billion to OpenAI's latest funding round, this figure falls significantly short of the previously expected $100 billion, and the market's reaction underscores the need for OpenAI to demonstrate secure funding before investors regain confidence in Oracle's stock.
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- Stock Decline: Oracle shares fell approximately 5% on Friday, despite the Nasdaq Composite rising 0.30% and the S&P 500 gaining 0.20%, indicating market concerns over its fundamentals.
- Debt Financing Pressure: Oracle has raised tens of billions for capacity expansion, but the market is shifting focus to the sustainability of debt-financed data centers, with analysts suggesting the stock may have outpaced fundamentals and needs to demonstrate value.
- Technical Analysis Signals: Currently, Oracle's stock is trading 7.6% below its 20-day simple moving average and 31.8% below its 100-day simple moving average, with both short- and intermediate-term trends pointing downward, reflecting ongoing market pressure.
- Future Earnings Expectations: The next major catalyst for Oracle will be its earnings report on March 9, with an expected EPS of $1.56 and revenue of $16.90 billion, indicating year-over-year growth, but a P/E ratio of 29.4x suggests a premium valuation relative to peers.
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- Lawsuit Background: Rosen Law Firm has initiated a class action lawsuit on behalf of investors who purchased Oracle Corporation (NYSE: ORCL) common stock between June 12, 2025, and December 16, 2025, alleging that Oracle misled investors regarding its AI infrastructure strategy, resulting in investor losses.
- 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, which not only jeopardizes the company's financial health but also poses risks to its credit rating.
- Financial Health Concerns: The significant increase in spending has raised serious concerns regarding Oracle's debt, free cash flow, and ability to fund its projects, leading investors to misunderstand the company's operations and prospects, believing its business was performing well.
- Next Steps: Investors wishing to serve as lead plaintiffs in the class action must file their motions with the court by April 6, 2026, while shareholders who choose not to participate can remain absent class members and still retain their eligibility for recovery.
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- Class Action Reminder: The Schall Law Firm reminds investors of a class action lawsuit against Oracle Corporation (NYSE:ORCL) for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between June 12, 2025, and December 16, 2025, with a deadline to contact the firm by April 6, 2026, to participate.
- False Statement Allegations: The complaint alleges that Oracle made false and misleading statements regarding its AI infrastructure strategy, claiming it would require massive CapEx spending without near-term revenue growth, which increased risks related to debt and credit ratings for investors.
- Increased Financial Risks: Oracle's rising CapEx has heightened risks associated with its debt, free cash flow, and ability to fund projects, leading to investor losses when the truth emerged, indicating that the company's public statements were false and materially misleading throughout the class period.
- Legal Consultation Opportunity: The Schall Law Firm offers legal consultation for global investors, encouraging affected shareholders to take action before class certification to protect their rights and seek compensation for their losses.
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