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Two AI bellwethers, Oracle and Adobe, report tonight as oil tops US$100 and bond yields close in on 5%.
US stocks fell for a third straight session. The Dow dropped 0.77%, the Nasdaq 0.64%, and the S&P 500 0.48%, while the Russell 2000 led the losses with a 1.30% decline. The pressure came from surging oil and Treasury yields near their highest in a year.
Tonight sets the tone. Oracle and Adobe, two heavyweights of the AI era, report after the close. Investors want proof that AI spending is still turning into real revenue.
At the same time, oil breaking above US$100 and the 10-year yield closing in on 5% have revived inflation worries. That mix leaves tonight's session pulled in several directions at once.
Upbeat outlook; management says the opportunity is "larger than the business"
Tonight's Catalysts
Oracle and Adobe, two AI bellwethers report tonight
Oracle (ORCL) and Adobe (ADBE) both report after the close tonight. Oracle is the market's cleanest gauge of cloud and AI-infrastructure demand, with consensus near US$1.74 EPS and US$19.1B in revenue. Adobe tests whether AI is expanding its user base and monetization rather than threatening its pricing power. Together, the two prints could set the tone for tech trading ahead.
Oil tops US$100 and energy inflation returns to focus
Brent crude rose 3.4% to about US$101 a barrel, its highest in roughly seven weeks, lifted by supply worries tied to geopolitical tension. ExxonMobil (XOM) and other energy names benefit, but the broader tape suffers because the move revives inflation fears and the odds of another rate hike.
The US 10-year Treasury yield is approaching 5%, a 52-week high, and it is the core pressure on equities. Small caps took the hardest hit, with the Russell 2000 down 1.30%. This week's inflation data will be the deciding factor for the Fed's next move.
Pre-Market Pulse 📊
After three straight days of declines, attention now turns to Oracle and Adobe earnings tonight. Outside the watchlist, Cloudflare (NET) jumped 10.5% during the regular trading session (intraday), while Academy Sports rose around 14% after reporting solid quarterly earnings.
Macro Note 📝
Oil above US$100 and the 10-year yield near 5% are the two wild cards for risk appetite tonight. Gold held near a record around US$4,400 as traders weighed the rate path. The rupiah also softened, trading near 17,500 per US dollar.
Conclusion
Tonight is a meeting of two forces: the micro catalysts from Oracle and Adobe against the macro pressure from oil and rates. The point is not to guess the direction, but to understand where the sensitivity sits.
If tonight's reports are strong, AI stocks could find fresh energy even against the macro backdrop. If they disappoint, expensive oil and high yields could extend the pullback. What stocks are you watching tonight?
Want to track how these names move in real time? Check Watchlist on Gotrade and set your strategy before the US session opens.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms registered with Kominfo (Indonesia's Ministry of Communication and Informatics). His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
