Oracle's Q2 revenue falls shy of estimates, Apollo CEO Marc Rowan weighs in on Fed rate cut

Market Overview - The Dow ended the session up about 500 points or 1%, with the NASDAQ composite up 0.3% and the S&P 500 just below its all-time high from October [2][10] - The 10-year Treasury note eased to 4.16%, while the 30-year Treasury stood at 4.8% [3] - The US dollar index eased, and gold and silver futures edged higher [4] Federal Reserve Actions - The Federal Reserve delivered its third rate cut of the year, cutting by a quarter point [6] - Experts described the cut as cautious, with expectations for one more rate cut next year, although the range of projections is wide [7][8] - Fed Chair Jerome Powell emphasized a risk-friendly tone regarding productivity and growth, suggesting productivity may be running at about 2% [8] Company Earnings - Oracle - Oracle's Q2 adjusted EPS was $2.26, beating the consensus of $1.64, while revenue was $16.06 billion, slightly below the estimate of $16.21 billion [13] - The Q2 operating margin was reported at 42%, just below the expected 42.2% [14] - Cloud revenue was $8 billion, slightly below the estimate of $8.04 billion, while cloud infrastructure revenue was $4.1 billion, above the estimate of $4.09 billion [14][15] Market Sentiment and Predictions - There is optimism in the market, with predictions that the S&P 500 could exceed the 7,000 milestone soon [12] - Analysts noted that the last interest rate decision has set the stage for a potential Santa Claus rally [12] - JP Morgan's bullish outlook suggested the S&P 500 could reach as high as 8,000 points if the Fed continues to ease [11] Company Earnings - Adobe - Adobe reported Q4 adjusted EPS of $5.50, beating the street estimate of $5.39, with revenue of $6.19 billion, above the expected $6.11 billion [36] - The guidance for Q1 adjusted EPS is between $5.85 to $5.90, exceeding the street estimate of $5.66 [36] Private Markets Insights - Apollo Global's CEO discussed the importance of maintaining confidence in the financial system amidst high government borrowing [41][44] - The definition of private credit is often misunderstood, with most private credit being investment grade rather than levered lending [48] - Concerns were raised about the debt levels of tech companies funding AI ambitions, particularly among intermediaries without diversified business models [60]