The Federal Reserve delivered a widely anticipated 25-basis-point interest-rate cut, bringing the target range to 3.5%–3.75%, though the decision exposed growing divisions within the central bank. Three board members dissented, marking one of the sharpest displays of internal disagreement in years and reinforcing expectations that this is likely Chair Jerome Powell’s final rate cut of the cycle.
US equity markets failed to take comfort from the easing move, weighed down instead by a sharp drop in megacap tech. Oracle plunged as much as 11% in early trading after fiscal second-quarter results showed cloud and infrastructure revenue falling short of expectations, sparking renewed doubts over the company’s ability to compete in the AI-driven data-center boom.
Geopolitically, Ukraine is set to meet European allies to shape an alternative framework to the US-led peace proposal, underscoring growing transatlantic differences on the timeline and terms for ending the nearly four-year conflict.
Trade tensions also resurfaced in North America. Mexico approved a new round of tariffs ranging from 5% to 50% on imports from China and other Asian countries, a move aimed at shielding domestic industry from the surge in low-cost goods.
Markets reacted cautiously. European stocks traded flat, while China and Japan slipped just under 1%. In the US, futures pointed to declines of 0.5% to 1%, with the Fed’s policy move overshadowed by Oracle’s slide and uncertainty over the central bank’s next steps.
Leave a Reply