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By Published On: December 11, 20250.8 min read

S&P 500 futures initially rose sharply following the FOMC decision, gaining around 50 points or approximately 0.7%. However, they have since retraced those gains, returning to levels seen before the announcement.

A significant factor in the market’s decline was Oracle’s poor earnings report. Nasdaq futures are underperforming, down 1.1%, as Oracle’s share price fell 11%. The market appears concerned about the company’s AI spending, which continues to increase despite investor caution.

On a broader level, this type of volatility is typical after Federal Reserve meetings. The Fed’s decision to cut rates and maintain a wait-and-see stance was anticipated, suggesting the initial rally was not fully justified.

Traders should also be aware that we have now entered the year-end period. Market behaviour during this time is heavily influenced by tax considerations, position adjustments, deleveraging, and book settlements, rather than straightforward investing or trading strategies. This can result in unpredictable price movements.

Original Source: Adam Button of investinglive.com

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