Pre-Market Analysis: Oracle Earnings Miss Drives Tech Weakness – December 11, 2025

This analysis synthesizes pre-market conditions for US equities on December 11, 2025, covering futures movements, stock performance, catalysts, and upcoming events [0].

US equity futures showed broad weakness: S&P 500 futures declined 0.5%, Nasdaq 100 futures dropped 0.8%, and Dow Jones futures fell 0.3% as of early pre-market trading [1]. Technology stocks, particularly AI-exposed names, led losses, while defensive sectors (notably pharmaceuticals) demonstrated relative strength. Oracle (ORCL) plummeted 11% pre-market after reporting Q2 fiscal 2026 revenue below Wall Street expectations, with cloud sales underperforming and AI-related capital spending raised to $50 billion (a $15 billion increase) [2, 4]. This reignited concerns about the cost of AI investments, weighing on peer tech stocks like Adobe (ADBE), Broadcom (AVGO), Netflix (NFLX, -4.14%), and Meta Platforms (META, -1.04%) [5]. Eli Lilly (LLY) bucked the trend, gaining 1.16% amid continued interest in its pharmaceutical pipeline [5].

Additional catalysts include the Federal Reserve’s third consecutive 25-basis-point rate cut on December 10, which investors interpreted as signaling a higher bar for future cuts, leading to mixed post-announcement reactions [3]. Today’s economic data releases—weekly initial jobless claims and September 2025 US trade balance at 8:30 AM ET—will provide insights into labor market health and international commerce [6]. Major companies reporting earnings today include Costco (COST), Broadcom (AVGO), and Lululemon (LULU), with results expected to influence consumer and tech sector performance [7].

1. AI Sector Sentiment Shift
   : Oracle’s earnings underscore growing investor sensitivity to AI spending sustainability, with the $50 billion capex target raising questions about near-term profitability for AI-focused firms [2, 4].
2. Defensive vs. Growth Rotation
   : The contrast between Eli Lilly’s gains (defensive pharma) and tech stock losses highlights early pre-market rotation away from growth sectors amid uncertainty [5].
3. Fed Rate Cut Aftermath
   : Despite the rate cut, the Fed’s cautious tone on future cuts continues to weigh on market sentiment, contributing to the pre-market weakness [3].

• Risks
  : Oracle’s results may trigger a broader tech sector sell-off, especially for AI-exposed stocks, as investors reevaluate AI investment costs [2, 4]. Volatility could increase following the release of jobless claims and trade balance data [6].
• Opportunities
  : Defensive sectors like pharmaceuticals (exemplified by Eli Lilly) may attract safe-haven flows amid tech weakness [5]. Positive earnings from Costco (retail) or Lululemon (consumer) could boost consumer sector sentiment [7].

This analysis provides an overview of pre-market conditions for US equities on December 11, 2025, highlighting:

• US futures weakness driven by Oracle’s earnings miss and AI spending concerns
• Notable pre-market movers: ORCL (-11%), LLY (+1.16%), NFLX (-4.14%), META (-1.04%)
• Upcoming catalysts: economic data (jobless claims, trade balance) and earnings (COST, AVGO, LULU)
• Sentiment shifts in tech (AI cost concerns) and defensive (pharma strength) sectors

All findings are based on available pre-market data and should be interpreted alongside real-time market developments.