.5 Things to Know Before the Stock Market Opens on Thursday

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Here are five key things investors need to know to start the trading day:

Stocks surged after the Federal Reserve delivered a widely expected 25‑basis‑point interest‑rate cut at its final policy gathering of the year. While the move met market expectations, the Fed’s statement conveyed a decidedly “hawkish cut” stance, signalling that further reductions are unlikely in the near term.

• The Fed announced its third rate cut of 2025, projecting only one additional cut before year‑end. This conservative outlook reflects easing inflation pressures but persistent uncertainty in the labor market.
• The meeting was the most divided among voting members since 2019, underscoring growing dissent over the pace of monetary tightening.
• In its post‑meeting statement, the Fed highlighted a modest rise in unemployment, suggesting a pivot toward monitoring job growth rather than inflation alone. It also reaffirmed a willingness to purchase short‑term Treasury securities as needed, providing a modest downward pressure on yields.
• Chair Jerome Powell described the decision as a “close call,” emphasizing a “wait‑and‑see” approach as the economy evolves.
• Wall Street responded positively: the Dow Jones Industrial Average jumped nearly 500 points, and the S&P 500 closed just shy of an all‑time high.
• President Donald Trump speculated that the Fed could have “at least doubled” the size of its rate reduction, underscoring the political pressure on monetary policy.

Technical analysts note that the yield curve has flattened further, a classic precursor to a slowdown in credit growth. Meanwhile, equity valuations remain elevated, raising concerns that the market rally may be more speculative than fundamentals‑driven.

Oracle missed analyst revenue expectations in its second‑quarter earnings release, sending shares down 11% in after‑hours trading. The miss weighed on broader AI‑related equities, including Nvidia and CoreWeave.

Despite the revenue shortfall, Oracle’s earnings per share beat forecasts, driven by a dramatic 400% increase in remaining performance obligations—a metric reflecting multi‑year service contracts. New commitments from Meta and Nvidia fueled this surge, hinting at strong demand for Oracle’s cloud and AI infrastructure.

In contrast, Cisco rallied to an all‑time closing high, marking its first record level since the dot‑com bubble peak of 2000. Cisco’s success is anchored in its pivot toward networking solutions for data‑center AI workloads and a robust services segment that now contributes a larger share of recurring revenue.

Analysts see a clear bifurcation: legacy enterprise software providers must accelerate AI integration to maintain relevance, while networking firms that can monetize the AI data‑center boom are poised for sustained upside.

President Trump announced the seizure of a large oil tanker, labeling it the “largest ever seized.” The vessel, identified as the Skipper—a Guyana‑flagged Very Large Crude Carrier—was reportedly en route to Cuba and has been under U.S. sanctions for involvement in illicit oil‑shipping networks linked to terrorist financing.

The seizure underscores the escalating pressure campaign against Venezuelan President Nicolás Maduro. Oil markets reacted sharply, with Brent crude spiking on news of the seizure, reflecting heightened geopolitical risk premiums.

From a strategic viewpoint, the action reinforces the United States’ commitment to curtailing sanctioned oil flows that fund destabilizing regimes. Energy traders should monitor sanctions enforcement trends, as they can introduce volatility into supply‑side fundamentals and impact price forecasts for both crude and refined products.

Rivian hosted its inaugural “Autonomy and AI Day,” showcasing in‑house artificial‑intelligence capabilities aimed at improving vehicle perception, driver assistance, and future fully autonomous driving stacks.

The move arrives as Rivian’s core EV business has underperformed relative to expectations since its IPO four years ago, with the company posting multi‑billion‑dollar losses despite cost‑reduction initiatives. By leveraging AI to differentiate its platform—especially in sensor fusion and edge‑computing—Rivian hopes to capture higher‑margin software revenue and reduce reliance on hardware‑driven pricing.

Industry analysts suggest that Rivian’s success will hinge on three factors:

1. Scalable AI software licensing: Turning proprietary perception models into a SaaS offering could generate recurring revenue streams.
2. Supply‑chain resilience: Integrating AI for predictive maintenance and inventory optimization may alleviate production bottlenecks.
3. Regulatory alignment: Demonstrating safety and compliance in autonomous features will be critical for market adoption, especially in the U.S. and Europe.

Investors will watch closely for evidence that AI can accelerate time‑to‑profitability, a pivotal milestone for Rivian’s long‑term valuation.

Coca‑Cola announced that Operations Chief Henrique Braun will succeed James Quincey as CEO in March 2026. Braun, a three‑decade veteran of the company, will inherit a business that has consistently outperformed rivals such as PepsiCo and retained the top‑selling soda brand in the United States.

Nonetheless, the iconic beverage maker faces a slowing demand environment as inflation squeezes lower‑income consumers. To offset stagnant carbonated‑soft‑drink volumes, Coca‑Cola has intensified its focus on premium offerings, health‑conscious brands, and direct‑to‑consumer e‑commerce channels.

The leadership transition signals a strategic continuity—Quincey will remain as Executive Chairman—while Braun is expected to accelerate digital transformation initiatives, particularly around data‑driven marketing and supply‑chain optimization. Analysts view the move as a hedge against market headwinds, betting that operational expertise will sustain margin expansion amid a shifting consumer landscape.

Investment firms catering to ultra‑high‑net‑worth individuals are increasingly using encrypted messaging platforms to coordinate deal flow, conduct due diligence, and even trade niche collectibles. The speed and privacy of these channels enable rapid decision‑making but also raise compliance and security considerations for financial advisers.