Oracle slump and softer dollar shift market tone

Oracle’s shares fell more than 11% in after-hours trading after the company issued a weaker profit and revenue outlook and said its spending would rise by $15 billion, dragging on US futures, Asian markets and sending bitcoin lower. The dollar eased after the Federal Reserve cut rates by 25 basis points and signalled a softer stance, allowing the euro to rise towards $1.1700 and sterling to touch $1.3390 before pulling back. Spot gold traded around $4,211 per ounce this morning, silver reached a record high of $62.88, and Brent crude slipped to $61.71 as markets also assessed geopolitical developments and US inventory data.

Equities

The FTSE 100 closed 0.1% higher on Wednesday, supported mainly by gains in banking shares. I’ll begin there, as requested. HSBC rose 3.2% after a Bank of America upgrade, with analysts pointing to progress on profitability and a stronger capital position. Standard Chartered climbed 2.2% late in the session on the same upgrade, helped by confidence in its Asian operations heading into 2025.

Pearson added 2% after J.P. Morgan named the company one of its top picks in the media sector. The bank highlighted stable demand across Pearson’s education businesses. FirstGroup rose 5% after being named the preferred bidder for London’s Overground rail network in a £3 billion contract, which boosted expectations for future revenue. Berkeley Group gained 3.2% after maintaining full-year guidance and stating that London, its core market, continues to show resilient demand.

Evoke, the owner of William Hill UK and 888, surged 14% after announcing on Wednesday that it was reviewing strategic options, including a potential sale. The update followed recent tax increases on online gaming and sports betting that had forced the company to withdraw its financial guidance.

In the United States, the S&P 500 closed 0.67% higher at 6,886.68 on Wednesday, supported by strong advances in industrial shares. The Dow Jones Industrial Average rose 1.05%, while the Nasdaq Composite ended 0.33% higher. The Russell 2000 added 1.3%, finishing at a record level.

GE Vernova delivered the largest single-stock move among major US names. The shares rose 15.6% after the company issued a confident 2026 revenue forecast, signalling stronger demand for its energy and AI-linked infrastructure. Its rise helped lift the industrials sector by 1.8% by the close.

Most US sectors ended the session higher. Utilities slipped 0.1% and consumer staples ended marginally lower, marking the only declines. Market breadth was firm across both the NYSE and Nasdaq, with advancing issues outnumbering decliners.

Trading volumes reached 16.91 billion shares, slightly below the recent 20-day average. Investors also assessed the Federal Reserve’s decision to cut rates by 25 basis points. Chair Jerome Powell later said he would not provide guidance on the timing of future adjustments, prompting traders to reassess expectations for 2026 while noting the Fed’s updated economic projections.

Forex & Commodities

The dollar traded in a choppy range, finding some support as investors reduced exposure to risk assets, though it failed to recover the ground it lost after the Federal Reserve’s less hawkish tone the previous evening. Against a basket of major currencies, the dollar edged up to 98.74 early this morning after touching its lowest level since 21 October. The euro briefly rose above $1.1700 before easing to $1.1686, while sterling reached $1.3390 before settling at $1.3360. The yen held steady at ¥156.1 per dollar.

Oracle’s disappointing earnings late on Wednesday renewed questions about the profitability of AI-related investment, prompting a sell-off in cryptocurrencies. Bitcoin slipped back below $90,000 and ether fell to $3,197 as short-term traders took profits. The Australian dollar traded lower at $0.6629 and the New Zealand dollar eased to $0.5791.

Spot gold pulled back early this morning to $4,211 per ounce after touching its highest level since 5 December. The metal eased as investors assessed the Federal Reserve’s divided vote to cut rates by 25 basis points and its comment that the timing of further reductions remains uncertain. Silver rose to $61.90 after reaching a record high of $62.88, supported by strong industrial demand and tighter inventories. Platinum stood at $1,657 per ounce and palladium at $1,474.

Oil prices softened on Thursday as traders focussed on developments in Russia-Ukraine peace talks. Brent crude traded at $61.71 per barrel and US West Texas Intermediate at $58.00 by 07:30 GMT. The market also monitored US actions around a sanctioned tanker off Venezuela and a drawdown in US crude inventories, which fell to 425.7 million barrels in the week ending 5 December.