Oracle Drags Tech Stocks Down While Dow Jones Rises: Market Reactions to Fed Rate Cut (2025)

• How Did Major Indices Perform After the Fed Rate Cut?
• Why Did Oracle’s Earnings Spook Investors?
• What Key Economic Data Moved Markets?
• Which Stocks Stood Out Today?
• FAQ: Quick Takes on Today’s Market Moves

In a mixed trading session following the Fed's decision to cut interest rates, the Dow Jones climbed 1.04% while the Nasdaq and S&P 500 dipped, weighed down by Oracle's disappointing earnings. The article dives into Oracle's slump, broader market trends, key economic data, and stocks to watch—including Adobe, BioNTech, and Eli Lilly—with insights from the BTCC team.

How Did Major Indices Perform After the Fed Rate Cut?

The Dow Jones Industrial Average ROSE 1.04% to 48,556 points, buoyed by sectors less sensitive to tech volatility. Meanwhile, the Nasdaq fell 1.04% to 23,407 points, and the S&P 500 dropped 0.33% to 6,863 points. Oracle’s 13.21% plunge to $194.54—its worst day in years—dragged tech stocks lower, reigniting fears of an AI bubble. "Oracle’s weak margins and high capital needs for AI projects made it the sector’s Achilles’ heel," noted a BTCC analyst.

Why Did Oracle’s Earnings Spook Investors?

Oracle’s Q3 results fell short on cloud revenue growth, with profits squeezed by heavy AI infrastructure spending. The company’s reliance on debt to fund its $10B data center expansion raised eyebrows. "Larry Ellison’s bet on AI is costly, and patience is wearing thin," said one trader. The stock now ranks as the S&P 500’s worst performer this week.

What Key Economic Data Moved Markets?

U.S. weekly jobless claims jumped to 236,000 (vs. 220K expected), signaling cooling labor demand. However, September’s trade deficit narrowed sharply to $52.8B—the lowest since June 2020—beating forecasts of $62.5B. "Export growth in autos and pharmaceuticals offset energy imports," per TradingView data.

Which Stocks Stood Out Today?

Adobe

The software giant posted record Q4 revenue of $6.19B (up 10% YoY), with adjusted EPS of $5.50 beating estimates by $0.11. Creative Cloud subscriptions drove the upside.

BioNTech

Berenberg called the stock "deeply undervalued," citing promising oncology drugs (Gotistobart/Pumitamig) and lingering COVID vaccine profits. Shares rose 4% pre-market.

Eli Lilly

Its obesity drug Retatrutide showed staggering results in Phase 3 trials: participants lost 28.7% body weight (avg. 32.3kg) over 68 weeks, with improved knee pain in osteoarthritis patients.

FAQ: Quick Takes on Today’s Market Moves

Why is Oracle down so sharply?

Weak cloud growth and concerns over AI spending sustainability triggered a sell-off.

How reliable are the trade deficit numbers?

The Census Bureau’s data is seasonally adjusted; the June 2020 comparison reflects post-pandemic supply chain rebounds.

Is BioNTech a buy after Berenberg’s note?

While their oncology pipeline is promising, COVID revenue remains volatile—investors should weigh risks.