Stock Market Today: Dow Jones, S&P 500 Futures Slip Day After Fed's Rate Cut—Oracle, Broadcom, Costco In Focus

The Fed cut rates 25 bps to 3.50%–3.75% and will resume monthly purchases of shorter-dated Treasury bills (~$40bn), a move that deepened a policy divide and left markets pricing an ~80% chance of no further near-term cuts; the 10-year yield sits at ~4.14% and the 2-year at ~3.53%. U.S. futures slipped (SPY -0.52%, QQQ -0.72%) as corporate movers included Oracle tumbling ~11% after mixed results, Planet Labs jumping ~16% on a revenue beat, and Broadcom, Adobe and Costco in focus ahead of earnings; oil fell ~1.5% and Bitcoin was down ~2.8%. Commentators are split—Michael Burry and Peter Schiff warned the Fed’s return to bill purchases is de facto QE, while Wall Street economists flagged a potential “Goldilocks” soft-landing—leaving investors focused on upcoming jobless claims, trade data and Fed speakers for guidance.

Analysis

The Federal Reserve delivered a 25 basis-point cut to 3.50%–3.75% — its third consecutive reduction — and announced resumption of monthly purchases of shorter-maturity Treasury bills at roughly $40 billion per month, a move that deepened a visible policy divide. Market pricing via the CME FedWatch shows an ~80.1% probability of the Fed holding rates steady near term, leaving markets to interpret the bill purchases as a form of targeted liquidity support rather than a full easing cycle.

U.S. futures weakened after Wednesday’s gains (SPY -0.52%, QQQ -0.72%) while the 10-year yield sat at 4.14% and the two-year at 3.53%, signaling a still-elevated yield environment and potential volatility around rate expectations. Commodities and risk assets were mixed: crude fell ~1.5% to $57.59/bbl, gold eased 0.21% to ~$4,219.72/oz, and bitcoin slipped ~2.8% to $90,325.90; Asian markets were broadly lower.

Corporate news amplified dispersion: Oracle plunged 11.01% after mixed fiscal-Q2 results, Planet Labs jumped 16.42% on a revenue beat of $81.25 million versus $71.99 million est., Adobe beat and raised fiscal-2026 GAAP EPS guidance to $17.90–$18.10 (vs. $16.56 est.), and Broadcom traded down ahead of its report (consensus EPS $1.86 on $17.1491B revenue). Analyst commentary is polarized — critics warn the Fed’s bill purchases resemble QE while others call the setup "Goldilocks" — implying policy-driven headline risk that could sway equities and credit spreads.

Key Decisions for Investors

• Reduce event-risk exposure into near-term earnings (e.g., Broadcom) and avoid initiating large positions in names that just posted mixed prints (Oracle) while employing option hedges if maintaining size
• Favor short-duration, cash-like instruments or short-term T-bills to capture yield and limit duration risk given the 2-year at 3.53% and Fed’s resume of bill purchases (~$40bn/month), which may cap the short end
• Monitor incoming data (initial jobless claims, trade figures) and Fed speakers closely and be prepared to re-rate duration and equity cyclicality quickly if commentary shifts from the currently priced ~80% pause
• Allocate selectively to companies with demonstrable near-term operational beats and momentum (e.g., Planet Labs) but size positions conservatively given mixed sentiment and elevated policy-driven volatility