FOMC On Deck, Oracle Earnings, And Value Rotation Takes the Lead

Group 1: Federal Reserve and Market Expectations - The market anticipates a near-certain rate cut from the Federal Reserve, with a focus on Powell's tone regarding future monetary policy [2][4] - A dovish tone could lead to a year-end rally, while a hawkish stance may dampen market enthusiasm [2] Group 2: Oracle's Earnings Report - Oracle is under scrutiny for its earnings report, particularly regarding the credibility of its AI cloud backlog, which some analysts believe may be inflated [5] - Concerns are rising in credit markets as indicated by widening debt CDS spreads, reflecting worries about Oracle's leverage and margin maintenance amid aggressive expansion [5] - Investors are looking for clarity on whether Oracle's significant spending on hardware and datacenter buildouts will enhance cloud revenue or compress profitability through 2025 [6] Group 3: Market Rotation and Adobe's Performance - There has been a notable market rotation towards value stocks, with financials, industrials, and energy sectors leading, while AI-related tech stocks lag [7] - Adobe is set to report earnings, with expectations of mid-teens revenue growth and healthy margins, but concerns exist about whether it is merely a victim of market rotation or losing long-term momentum [8] - Adobe's revenue is projected to be approximately $13.2 billion, with an EPS of around $1.37 and cloud growth in the mid-teens [10]