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Oracle has some new deals with big AI names. That news wasn't enough to keep its stock from plummeting late Wednesday after the company released its quarterly results.

The cloud infrastructure giant said Wednesday new agreements with AI chipmaker Nvidia (NVDA) and Meta Platforms (META) helped drive its backlog to a record $523 billion. However, Oracle's fiscal second-quarter revenue of $16.06 billion, while up 14% from the year-ago period, came in below analysts' estimates, offsetting better-than-expected adjusted earnings of $2.26 per share.

Oracle (ORCL) shares were down 11% in recent after-hours trading.

Oracle's stock has pulled back recently—after a big run-up in the wake of the company's earnings report in September—amid worries about an AI bubble and its reliance on a few big customers in the AI space. The stock's drop in extended trading Wednesday suggests the latest results weren't enough to alleviate those concerns.

Heading into Wednesday night's results, Wall Street analysts warned Oracle would face a challenging setup, with investors likely to be watching closely for signs demand for Oracle's AI offerings is broad-based.

The company's shoutout to heavy AI spender Meta may not have soothed those concerns, and its commitments from Nvidia, which is a big supplier of Oracle's chips, could underscore worries about circular deals.

Looking ahead, Oracle said it sees adjusted earnings per share of $1.70 to $1.74 for the third quarter, in line with analysts’ estimates. Oracle’s forecast of 19% to 21% revenue growth was above projections.

As of Wednesday's close, shares of Oracle have fallen about 35% from their September highs. The stock is still up around 33% since the start of the year, but that pales with its 100% year-to-date gain in September.

• The Fed cut interest rates Wednesday to help boost the job market, and upcoming economic data will show if the job market is still weakening, as it has been for the past few months.
  
• Fed officials are divided about whether to cut interest rates again or keep them higher for longer to quash inflation.
  

The Federal Reserve cut its key rate by a quarter-point Wednesday for the third time in as many meetings—but it's far from certain that more cuts are on the way anytime soon.

Wednesday's move brought the fed funds rate to a range of 3.5% to 3.75%. That's at the high end of the "neutral" range where Fed officials think the rate is neither turbocharging the economy with easy money nor slowing it down with high borrowing costs, Federal Reserve Chair Jerome Powell said at a press conference following the policy committee's decision.

"As we noted in our statement today, we're well-positioned to determine the extent and timing of additional adjustments based on the incoming data, the evolving outlook and the balance of risks," Powell said. "That new language points out that we'll carefully evaluate that incoming data."

Fed officials projected making just one further quarter-point rate cut next year. Economists said that outcome was likely, but that it could shift depending on the Fed's new leadership next year and the incoming economic data.

"The Fed thinks its policy rate is back in the range of neutral and the growth outlook looks solid, but inflation is still too high," Elyse Ausenbaugh, Head of Investment Strategy at J.P. Morgan Wealth Management, wrote in a commentary. "Pausing cuts makes sense, but there could be renewed pressure and uncertainty in the new year."

The Fed's divided views mean upcoming economic reports could sway the central bank towards lowering borrowing costs if unemployment rises unexpectedly, or towards more rate cuts if inflation surprises to the upside.

The Fed is about to get a good deal of data to inform its next meeting in January.

Key reports on inflation and the job market, which were delayed due to the government shutdown, are expected next week. They could give Fed policymakers a better idea of whether they need to cut rates to prevent a surge in unemployment or keep them higher for longer to quell inflation that has run higher than 2% since 2021.

Financial markets are pricing in a 22% chance of a fourth straight rate cut in January, according to the CME Group's FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

Fed officials were divided about whether to cut rates on Wednesday. Two members of the 12-person FOMC dissented against the majority and favored keeping rates flat. In addition, six of the 19 Fed policymakers who submitted projections indicated that keeping rates flat was appropriate—what economists call a "soft dissent."

"'Hard dissents’ from voting members as well as the ‘soft dissents’ seen in the dot plot highlight the Fed’s hawkish bloc, and the return of ‘extent and timing’ language to the statement regarding future policy decisions was likely done to appease them," Kay Haigh, global co-head of Fixed Income and Liquidity Solutions in Goldman Sachs Asset Management, wrote in a commentary. "While this leaves the door open to future cuts, labor market weakness will have to clear a high bar.”

The divided vote and uncertain outlook reflect the Fed's difficult position: unemployment has risen over the year while inflation has accelerated. The Fed is supposed to use monetary policy to keep inflation low and employment high, and it can't push in both directions at once.

"A very large number of participants agree that risks are to the upside for unemployment and to the upside for inflation," Powell said. "So what do you do? You've got one tool. You can't do two things at once. So at what pace do you move? It's a very challenging situation."

Powell said all the inflation this year seems to have come from President Donald Trump's sweeping campaign of raising tariffs on nearly every country in the world. The import taxes have been passed along to consumers to some extent. Meanwhile, price increases have cooled down in other parts of the economy not directly affected by tariffs, such as housing.

"Services inflation is coming down, and that's offset by increases in goods, and that goods inflation is entirely in sectors where there are tariffs," Powell said.

• Bitcoin popped a bit after today's Fed decision, though around the close of regular trading the crypto coin had given back some of its gains.
• Crypto investors may have been signaling both relief that the Fed delivered its rate cut as expected, and concern that its plans aren't as aggressive as some hoped.

Bitcoin got some of what it wanted from the Fed today. But what's next?

The price of bitcoin (BTCUSD) climbed toward $94,000 as the Federal Open Market Committee cut its target rate by a quarter percentage point, as widely expected, then handed back a few grand, perhaps a signal of disappointment that the outlook for future cuts wasn't clearer. Still, the prospect of more accommodative policy ahead may be helping hold crypto off recent lows. (Stocks, meanwhile, climbed today.)

Analysts and investors have been recalibrating their expectations for crypto lately, with the digital assets in the doldrums since the top of October. Now, it seems, the Fed is in the driver's seat with regard to what's next for the world's largest cryptocurrency, which as of today is little-changed for 2025 after a wild run.

Bitcoin is a multi-faceted asset, sometimes behaving like a hedge, and other times, like a risk asset. Its recent sensitivity to monetary policy by the Fed could be a signal that it could get out of its recent rut in 2026.

Bitcoin "is a bit of a chameleon, because there will probably be a time when it acts like gold, but right now it acts a lot more like it's sensitive to monetary policy and the business cycle," Fundstrat Head of Research Tom Lee told CNBC on Wednesday. "Both are about to turn up."

Standard Chartered, a UK-headquartered bank, cut its year-end bitcoin price target by half in a report published Tuesday—but it's still bullish, even in the short-term.

It trimmed its year-end target for bitcoin to $100,000 by the end of the year, from $200,000, and its 2026 target to $150,000 from $300,000. The firm characterized bitcoin's recent 36% drop from peaks as "normal," but said that price action also pushed it to recalibrate its outlook.

Ultimately, the crypto market is in search of buyers. Much of that heavy lifting will be done by crypto exchange-traded funds, according to Geoff Kendrick, Standard Chartered's global head of digital assets research, with the recent news that Vanguard opened up its brokerage platform to crypto ETFs a promising sign. Kendrick thinks bitcoin will return to making new highs but sees it happening "more slowly" than before.

Meanwhile, some big digital asset treasury companies are still buying. Strategy (MSTR) recently added more than 10,000 bitcoin to its stockpile, assuaging concerns that the company was poised to sell. Bitmine Immersion Technologies (BMNR) picked up 138,452 ether.

And Twenty One Capital (XXI), a bitcoin company of which stablecoin provider Tether is a majority owner, recently landed in public markets via a merger with a special purpose acquisition company.

Chief Jack Mallers, who also founded Bitcoin payments app Strike, said in an interview with CNBC that the company intends to "acquire as much bitcoin as [it] possibly can."

• Eli Lilly said it plans to build a $6 billion facility in Alabama to produce its experimental weight-loss pill, orforglipron.
• The drugmaker anticipates seeking approval for orforglipron from regulators by the end of the year.

With demand for weight-loss drugs soaring and an agreement with the White House to produce more medicine in the U.S., Eli Lilly (LLY) is taking steps to boost its domestic output.

The drugmaker said Tuesday it plans to build a $6 billion facility in Huntsville, Alabama to make medicines including orforglipron, its experimental pill to treat obesity and Type 2 diabetes. The company plans to submit orforglipron to global regulatory agencies for approval by the end of the month.

Eli Lilly also said it expects to use machine learning and artificial intelligence systems to streamline operations at the Huntsville site.

Eli Lilly's plans to build a new plant in Alabama represents the latest in a string of recent commitments to American facilities, amid growing demand and pressure from the Trump administration to expand domestic manufacturing.

The announcement comes after CEO David Ricks took part in a White House ceremony last month, where the company agreed to reduce prices of weight-loss drugs and increase manufacturing in the U.S. In exchange, the Trump administration agreed to give Eli Lilly three years of tariff relief, and assurances it will not be subject to future government price mandates.

Shares of Eli Lilly climbed about 1% Wednesday. They've added nearly 30% in 2025, outpacing the S&P 500's 17% gain.

• Shares of neighborhood network Nextdoor took off Wednesday after hedge fund founder Eric Jackson posted bullish comments about the company on social media.
• Jackson's previous comments about Opendoor Technologies and Better Home & Finance helped send shares of both skyrocketing earlier this year.

Nextdoor shares are riding a meme stock rally.

Shares of the neighborhood social network jumped nearly 50% to about $3 Wednesday before paring back some early gains after a hedge fund founder known for driving up shares of other meme stocks posted bullish comments on social media. The move helped bring Nextdoor (NXDR) stock back into positive territory for the year.

Eric Jackson, president of Toronto-based EMJ Capital, called Nextdoor “The Most Mispriced Agentic-AI Platform of the 2020s” in a post on X, indicating it could be set for significant growth. "Identity + trust + proximity + AI is a rare combination," wrote Jackson, who suggested the market is underestimating Nextdoor's strengths.

Nextdoor, which went public through a special purpose acquisition company merger in 2001, is a social media platform offering users a way to connect with neighbors and get local news and recommendations. Last month, the company reported rising revenues, though it has struggled to turn a profit.

Heightened volatility in Nextdoor's stock price could underscore lingering uncertainty about its business if Wednesday's momentum fails to hold.

Jackson argued that in every cycle, “a few platforms stay misunderstood for years... until one moment reframes everything,” and that Nextdoor shares at about $2 each “feels like one of those moments.”

Jackson’s bullish comments earlier this year about other companies, such as online real estate firms Opendoor Technologies (OPEN) and Better Home & Finance (BETR), have also helped send their shares soaring. Shares of Opendoor are up about 370% for 2025, while Better Home & Finance has soared 460%.

Shares of video game retailer GameStop (GME), which saw record levels during the meme stock craze of early 2021, were down about 4% in recent trading after the company posted quarterly sales that missed analysts' estimates, while shares of online pet retailer Chewy (CHWY) climbed about 2% after a strong earnings report.

• The Federal Reserve cut its key interest rate by a quarter-point Wednesday, as widely expected.
  
• The Fed's policy committee was unusually divided, with three members voting against the decision.
  
• The slowing job market and stubborn inflation are pulling the Fed in opposite directions.
  

The Federal Reserve lowered borrowing costs Wednesday to boost hiring, but it could be the last rate cut for some time.

As widely expected, the Federal Reserve's starkly divided policy committee cut the central bank's key interest rate by a quarter-point Wednesday. The cut puts the range at 3.5% to 3.75%, its lowest since November 2022, and prioritizes helping the job market over fighting inflation. Three of the 12 Federal Open Market Committee members dissented from the decision, with one preferring a steeper half-point cut, and two voting to keep the rate flat. It was the most dissents since September 2019.

Fed Governor Stephen Miran, a Trump appointee, favored the sharper cut, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid voted to keep it flat.

The split decision reflects the dilemma the Fed faces in pursuing its dual mandate from Congress to keep inflation low while maintaining high employment. President Donald Trump's tariffs and other economic policies have kept inflation running above the Fed's target of a 2% annual rate, while slowing the labor market. Uncertainty about trade policy has led businesses to delay expansion and hiring plans, contributing to the slowdown.

"In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks," the committee said in a statement.

The Fed cut rates Wednesday, but with the central bank's policy committee so divided, further cuts are far from a sure thing, as the economy is facing a risk of "stagflation," or stagnant growth with high inflation.

In recent weeks, the committee has split into two distinct camps: one believes the slowing labor market poses the greater risk to the economy, while the other believes there's a greater danger of reigniting high inflation.

The Fed can only address one of those concerns at a time: keeping the fed funds rate higher for longer raises borrowing costs on short-term loans, reducing demand and pushing down inflation; while a lower one does the opposite, boosting demand and hiring but potentially stoking inflation.

Fed officials have said they would like to move the rate to a "neutral" position that maintains stability, but disagree about what that rate would be.

The Fed made its decision without much of the data upon which it usually relies. Key reports on inflation and the job market were delayed by the government shutdown and are not scheduled to be published until next week.

Fed officials also made their quarterly projections for the economy, and with little new official data to go on, they were little changed from their last set of projections in September. Fed officials now expect slightly lower inflation, at 2.4% in 2026 as measured by PCE in 2026, and higher economic growth, with the GDP rising 2.3% in 2026 instead of 1.8%.

• The 10-year Treasury yield rose to a three-month high on Wednesday morning even as investors awaited an interest rate cut from the Federal Reserve.
• The disconnect between official rates and market rates is likely being driven by a variety of factors, including an uncertain economic outlook, rising government debt, and threats to the Federal Reserve's political independence.

Official interest rates are declining, but not the rates that could matter the most to everyday Americans.

Treasury yields ticked up to a three-month high on Wednesday morning despite near certainty on Wall Street that the Federal Reserve was hours away from cutting interest rates. The 10-year Treasury yield, which influences interest rates on a variety of consumer loans including mortgages, rose Wednesday morning to 4.21%, its highest level since early September. Meanwhile, traders put the probability of a quarter-percentage-point cut today by the Fed at about 90%.

Conventional wisdom says that Treasury yields decline as investors grow more confident the Fed is about to cut its policy rate, but that’s not what’s happened in recent weeks. The probability of a rate cut increased 7 percentage points in the past two weeks, while the 10-year yield has risen about 20 basis points. 

Elevated interest rates have weighed on economic growth, especially in rate-sensitive corners such as the housing market, for several years. Evidence that the labor market weakened in recent months is supporting arguments for rate cuts by the Fed, but financial market conditions could reduce the impact those cuts have on consumers.

The Fed doesn’t directly set the interest rates paid by consumers and businesses. Instead, it sets the rate it pays banks for the money they hold in reserve accounts at the Fed, which effectively sets a floor on interest rates. From there, market forces like supply and demand take over, which can drive a disconnect between monetary policy and interest rates out in the wild. 

Wall Street’s concerns about the growing U.S. national debt could be helping to nudge yields higher. The tax cuts included in the One Big, Beautiful Bill Act, signed into law in July, are expected to add more than $3 trillion to the national debt over the next decade. Investors may be demanding more compensation for buying U.S. government debt because they’re concerned about the government’s ability to pay up in the future. 

Policy uncertainty and geopolitical risk could be weighing on demand for U.S. Treasurys from international investors, historically major buyers of U.S. debt. President Trump’s unpredictable tariff policies sparked a Treasury and U.S. dollar sell-off earlier this year. Though recent Treasury market data suggests foreign appetite for U.S. debt, while not as robust as it once was, remained healthy through September. 

Rising yields could reflect uncertainty about the trajectory of inflation and, subsequently, monetary policy. Inflation has remained elevated this year, likely boosted by President Trump’s tariff policies. Investors are unsure if tariffs will drive sustained price increases that the Fed would need to respond to with tighter policy, or whether policy can loosen as inflation returns to its downward trajectory. 

President Trump’s attacks on the Fed’s independence could be adding to inflation and interest rate uncertainty. The president has made several attempts to exert greater influence over the central bank, raising concerns in domestic and international markets that U.S. policy could become untethered from economic reality. Trump is expected to soon name a successor to Fed Chair Jerome Powell, whose term ends in May, early next year.

• Kevin Hassett, the front-runner to take over as Fed chair in May, has advocated for sharply lower interest rates but could face pushback putting that agenda into practice.
• The 12-member Federal Open Market Committee votes on rate cuts and has many members who are skeptical about lowering interest rates too much.
  

Kevin Hassett, the front-runner to take over the Federal Reserve chair position, would push for lower interest rates—but it's uncertain whether he would be able to get them.

Hassett, currently a top economic advisor to President Donald Trump, is widely expected to be Trump's nominee to replace current Chair Jerome Powell when his term ends in May. Hassett has consistently advocated for the Federal Open Market Committee to lower its key interest rate significantly.

Most recently, he said there was "plenty of room" to lower rates in the months ahead at a Wall Street Journal CEO Council event on Tuesday. However, it's unclear how much he would be able to bend the Fed's policy committee to his way of thinking.

"The Chair does not have unbounded power to push the Committee in whatever direction he chooses," economists at Deutsche Bank, led by chief economist Matthew Luzzetti, wrote in a commentary.

Hassett would take over at the Fed at a crucial moment for monetary policy: The central bank is torn between the two halves of its dual mandate from Congress to keep inflation low and employment high.

Members of the 12-person committee that votes on interest rates have been divided about whether to keep the fed funds rate higher for longer to battle inflation, or lower it to boost the economy and help the job market. Some see the job market, which has been faltering lately, as the greatest concern, while others are more worried about inflation that has run above the Fed's target of a 2% annual rate since 2021.

Hassett would likely push for much lower interest rates, which could supercharge economic growth—but could also worsen inflation. Given skepticism among the Fed's other leaders about steep rate cuts, it's more likely the Fed will lower rates only moderately next year.

The Fed is widely expected to lower the rate by a quarter-point on Wednesday, bringing it to a range of 3.5 to 3.75%, a fresh low since November 2022. The fed funds rate influences borrowing costs on short-term loans—easier money helps encourage spending and can boost the economy but at the risk of stoking inflation.

At the Journal event, Hassett said the Fed should lower interest rates by more than a quarter-point. Among the FOMC members, only fellow Trump appointee Fed Governor Stephen Miran has advocated for steep rate cuts, arguing the unorthodox position that Trump's economic policies will significantly lower inflation in the year ahead.

Trump has frequently pushed the Fed to lower interest rates sharply, criticizing Powell for not doing so. The president has said he would only nominate a Fed chair who would cut rates.

At the Journal event, Hassett said he would make decisions based on economics and independently from Trump's wishes.

It's not certain that Hassett will be Trump's nominee. Trump is considering Hassett, along with three other finalists, and is beginning a final round of interviews this week, the Financial Times reported on Tuesday.

“We’re going to be looking at a couple different people, but I have a pretty good idea of who I want," Trump told reporters on Air Force One after the initial report.

If Trump nominates Hassett, he would then have to be confirmed by the Senate to take his place on the FOMC.

If he is confirmed, he would still have to convince a majority of the committee to vote along with him. His recent criticism of the Fed for not cutting rates could work against him, Luzzetti wrote.

"As a vocal critic of Fed policy recently, he might find it initially challenging to convince his colleagues to bring rates meaningfully lower," he wrote. "As has been observed with Governor Miran, other officials might be sceptical of forward-looking arguments that rely heavily on the administration's policies bringing inflation closer to target."

Another potential obstacle: Jerome Powell, who could choose to stay on as a rank-and-file member of the committee after his term as chair ends. Powell has advocated a cautious approach toward rate cuts.

All in all, Hassett would bring more "dovish" leadership to the Fed but would face challenges cutting rates too sharply.

"Hassett could prove more effective if he moved toward the center of the Committee and tried to build a consensus around a more moderate policy path, such as moving a bit faster towards neutral," Luzzetti wrote.

• GE Vernova boosted its financial targets and doubled its quarterly dividend, sending shares higher Wednesday.
• Analysts said GE Vernova could beat its targets, suggesting it's likely to benefit from growing power demand.

GE Vernova (GEV) shares surged to a record high Wednesday after the company boosted its financial targets and doubled its quarterly dividend.

The stock was up over 13% near $707 in recent trading, leaving it on track to close at an all-time high. (Read our daily markets coverage here.) 

The energy equipment manufacturer said during its investor day Tuesday that its 2025 sales are trending toward the higher end of its $36 billion to $37 billion forecast, and lifted its projections for free cash flow this year to $3.5 billion to $4 billion, up from $3 billion to $3.5 billion previously.

The company said it expects to generate $41 billion to $42 billion in revenue next year, along with $4.5 billion to $5 billion in free cash flow, and hiked its long-term projections for revenue and free cash flow by 2028.

GE Vernova's board also approved doubling its dividend to $0.50 per share and boosted its stock buyback plan to $10 billion from $6 billion previously.

GE Vernova's stronger outlook could boost confidence in its business as an independent entity after the provider of energy equipment and former division of General Electric was spun off from the conglomerate last year.

UBS analysts said the higher targets constituted a "very strong update," and that GE Vernova could be poised to beat its own forecasts given a "track record of overdelivering." William Blair analysts wrote in a note to clients that they continue to see GE Vernova as "the leader in energy and power infrastructure, in our view the most important component to the AI theme."

Oppenheimer analysts upgraded their rating of GE Vernova stock to "outperform" with a $855 price target, writing "the magnitude of the AI infrastructure buildout proving larger and lasting longer than we previously anticipated."

With Wednesday's gains, GE Vernova stock has more than doubled in value in 2025.

• Cracker Barrel Old Country Store reported weak sales as the blowback from its unpopular rebranding effort continues.
• The restaurant chain's revenue and comparable store sales slumped, and the company cut its full-year outlook.
• The company's shares hit their lowest level since early 2009 on Wednesday morning, and have lost half their value since the start of the year.

The fallout continues over Cracker Barrel Old Country Store’s (CBRL) ill-fated logo change and restaurant revamp.

Shares of the country-themed chain fell as much as 6% in early trading Wednesday, hitting their lowest level since early 2009, after the company posted mixed results and slashed its guidance.

Cracker Barrel continues to suffer financially after customer backlash to its logo change and restaurant updates earlier this year. The company's share price has plunged since those changes were initially unveiled, underscoring the impact that big strategic changes can have on a company's outlook.

Cracker Barrel reported first-quarter fiscal 2026 revenue declined 5.8% to $797.2 million, missing Visible Alpha estimates by about $1.8 million. Restaurant comparable store sales slid 4.7%, and retail comparable store sales sank 8.5%, both missing forecasts as well. The company's adjusted loss per share of 74 cents was better than anticipated.

The company is facing “unique and ongoing headwinds,” CEO Julie Masino said in a press release. "We have adjusted our operational initiatives, menu, and marketing to ensure we are consistently delivering delicious food and exceptional experiences," she said, adding that Cracker Barrel is “executing a variety of cost savings initiatives" to boost its financial performance.

The chain was rocked earlier this year when it removed the man and barrel on its logo, and made adjustments in its menu and kitchen to improve efficiency. The negative reaction from customers was immediate, leading Cracker Barrel to restore the old logo and revert to previous meal offerings and cooking methods.

The company now sees full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $70 million to $110 million, down from its earlier outlook of $150 million to $190 million. It predicts revenue of $3.20 billion to $3.30 billion versus its previous projection of $3.35 billion to $3.45 billion.

Cracker Barrel Old Country Store shares have lost more than 60% of their value since hitting their high for the year in late July.