Global Markets Shaken: AI Profits Questioned and Fed Rate Cut Impact

Asian markets waver after Oracle's disappointing earnings cast doubt on AI profitability. U.S. Federal Reserve's interest rate cut impacts global bonds and currencies, with oil prices rising after geopolitical tensions. Investors await further cues on monetary policy and its effect on future market dynamics.

Asian stocks took a hit on Thursday following Oracle's underwhelming earnings report, which raised concerns about the profitability of AI ventures. The tech giant's shares plummeted over 11% in after-hours trading, significantly impacting major U.S. and Asian indices.

Amid these developments, the Federal Reserve cut U.S. interest rates by 25 basis points. Fed Chair Jerome Powell's balanced outlook during a press conference alleviated some market concerns, leading to a rise in Wall Street indexes, including a 0.7% uptick in the S&P 500.

Furthermore, geopolitical tensions escalated oil prices as the U.S. seized an oil tanker off Venezuela's coast. Meanwhile, the market reacts to currency fluctuations and awaits future economic indicators to gauge potential policy shifts.