Dow Futures Remain Steady, Oracle Jumps 3.3% After Results
During Monday's session, most of the stock futures from the USA were trading steady. This comes against the backdrop of bullish moves in most of the benchmark averages in the USA. According to experts, this was supported due to the rally in the tech stock in addition to the upcoming Fed's rate decision and inflation data.
The S&P 500 and the Dow Jones Future, which are considered the major future indexes, remained flat throughout the day. Furthermore, the Nasdaq 100 futures were up by a marginal 0.1% for the day.
Oracle Jumps 3.3% After Earnings
During the extended trading hours, the shares of Oracle Corp (ORCL) jumped 3.3% after better-than-expected earnings. As per the Oracle results, the company's EPS was $1.67, while the market was expecting an EPS of $1.58.
Similarly, the reported revenue of Oracle was $13.8 billion against expectations of $13.74 billion. Over all, the results of Oracle were mostly positive which eventually translated into the company's stock price as well.
Looking ahead in today's session, the CPI data will be closely monitored by the market players. According to forecasts, the annual inflation in the USA is expected to go down from 4.9% to only 4.1%. This inflation data will also allow the Fed to gauge the effectiveness of its rate hikes.
The Dow Jones Industrial Average (DJIA) also added around 189.6 points which is equal to a 0.6% gain. After the daily gains, the DJIA is now sitting at 6-week highs, which suggests the optimism of investors related to the rate hike pause.
If we look at the bonds market, the 10-year bond rates are trading at 3.743%, which is way higher than what it was a few years ago.
To conclude, the performance of the US stocks and the major indices is now hanging on the Fed's decision related to its interest rate policy. A pause in the interest rate or a rate cut will be a bullish signal for the stocks & will cause them to rally upwards.