Traders Turn Cautious as Focus Turns to Tech Earnings

Please note: The Morning Minutes will not be issued tomorrow. They should return on Monday, December 15th.

The Fed meeting has come and gone, leaving mixed signals. While the FOMC did cut rates by 0.25% as expected, there were two hawkish dissenters and one dovish dissenter. The dot plot forecast for 2026 suggested that the majority of members are split across a range between the Fed Funds rate ending 2026 up to 0.50% lower to up to 0.25% higher. The Fed also quietly announced that it is going to start buying short term bills again now that quantitative tightening is over, which could potentially set the stage for a reintroduction of quantitative easing if needed in future.

Focus has now turned to earnings reports from technology companies. Oracle is down 12.9% premarket and is dragging AI related stocks lower. Although earnings beat the Street, revenues were disappointing. Meanwhile, Ciena* is up 8.9% premarket after posting strong EPS ($0.91 vs Street $0.78). Broadcom* and Costco report after the close today.

With investor enthusiasm fading, NASDAQ futures are down 0.5%, giving back all of yesterday’s 0.3% gain. Dow futures are flat, consolidating yesterday’s 1.0% advance. In another sign of investors turning more cautious, Bitcoin is down 3.5% while Gold is up 0.3% and Silver is up 2.3%. Commodities are mixed again with Copper up 1.0% and Crude Oil down 1.1%.

*Shares of Broadcom and Ciena are held in portfolios managed by SIA Wealth Management.

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