Preview of US Stock Market | Three major stock index futures fall together, Oracle's performance reignites concerns about the AI bubble, and the market waits quietly for Broadcom's earnings report after hours.

1. Before the U.S. stock market on Thursday, the futures of the three major U.S. stock indexes fell in unison. As of the time of publication, Dow Jones futures fell 0.18%, S&P 500 index futures fell 0.57%, and Nasdaq futures fell 0.78%. 2. As of the time of publication, the Germany DAX index rose 0.20%, the UK FTSE 100 index rose 0.15%, the France CAC40 index rose 0.46%, and the Europe Stoxx 50 index rose 0.38%. 3. As of the time of publication, WTI crude oil fell 1.45% to $57.61 per barrel. Brent crude oil fell 1.41% to $61.33 per barrel. Market News After the Federal Reserve meeting, the market expects two rate cuts in 2026. Traders are relieved that Fed policymakers have room for further easing policy next year, with the current expectation being two rate cuts in 2026, although the Fed's latest forecast indicates only one rate cut. Powell stated that the Fed has taken sufficient measures to stabilize the labor market while maintaining high interest rates to continue to suppress inflationary pressures. Officials raised the median economic growth forecast for 2026 from 1.8% predicted in September to 2.3%. They also expect inflation next year to drop from the previous forecast of 2.6% to 2.4%. SocGen: Short-term bearish, but the dollar will make a comeback by the end of 2026. French Industrial Bank stated that despite short-term pressure on the dollar, it will regain its upward momentum in the medium to long term due to the relative advantage of the U.S. economic fundamentals. The weakening economic data in the U.S., especially the weak labor market data, is a core factor affecting the focus of the foreign exchange market. This weakness is offsetting the market's optimism about the AI revolution, shifting focus to the possible significant interest rate cuts that the next Fed chairperson may implement. The bank expects downward pressure on the dollar in the coming weeks and at the beginning of 2026 due to slowing economic growth in the fourth quarter. Despite this, the bank believes that the prospects for U.S. economic growth in the medium term will not deteriorate significantly beyond what the market has already digested. Freight index surges 50% in 50 days! Shortage of oil tankers intensifies as six new giant tankers join the ranks of "cargo-emptying oil theft". The shortage of oil tankers is becoming increasingly severe, so much so that newly built ships that usually transport finished oil on their maiden voyage are now rushing empty to load crude oil as quickly as possible. Signal Ocean's ship tracking and charter data show that six super tankers delivered this year are sailing empty from East Asia to the Middle East, Africa, or the Americas to load crude oil. Tanker owners about to receive new ships usually use them to transport gasoline and other fuels on their maiden voyage, before loading crude oil. Now, the severe shortage of tankers is disrupting this logic. This year, both internal and external oil producers of OPEC have increased production. At the same time, Western sanctions on Russia and the risks of crossing the Red Sea have disrupted traditional routes, resulting in longer shipping routes and the need for more ships. Stock News "Alphabet Inc. Class C Chain Core" Broadcom Inc. (AVGO.US) Q4 earnings report to be released, performance expected to exceed expectations under the AI engine. Broadcom Inc. will release its Q4 earnings report for the fiscal year 2025 after the U.S. market on December 11. Wall Street currently expects Broadcom Inc.'s Q4 revenue to increase by 24.5% year-on-year to $17.5 billion, with adjusted earnings per share increasing by 31% year-on-year to $1.87. As a key player in the "Alphabet Inc. Class C (GOOGL.US) ecosystem", benefiting from the strong growth in the use/sale of TPU by Alphabet Inc. Class C to external customers and overall artificial intelligence (AI) spending, Broadcom Inc. is expected to once again exceed market expectations. Like NVIDIA Corporation, Broadcom Inc. is seen as a major beneficiary of the surge in AI spending, with data centers relying on its custom chips and network components to process AI computing workloads. As one of the largest ASIC suppliers to hyperscalers, Broadcom Inc. has performed strongly this year. Oracle Corporation (ORCL.US) reignites concerns about the AI bubble with its earnings report. Oracle Corporation's second-quarter report shows a significant increase in spending on artificial intelligence data centers and other equipment, but these rising investments have not translated into cloud business revenue at the speed investors expected, sparking concerns about whether investments in AI-related infrastructure can quickly turn into profits, causing Oracle Corporation's stock price to plummet by over 11% in pre-market trading. Dragged down by this, other AI and semiconductor stocks like NVIDIA Corporation (NVDA.US) also saw widespread declines in pre-market trading. Oracle Corporation's performance once again raises concerns about overvaluation in tech stocks and whether capital investment in AI infrastructure can bring returns, rekindling doubts that caused market volatility for weeks in November. While the tech sector has driven the impressive rise of the S&P 500 index this year, concerns about AI spending are prompting some investors to shift funds to other sectors. Broadcom Inc. will release its earnings report after the market, when the market will again evaluate the strong momentum of the AI industry. Adobe (ADBE.US) reports Q4 earnings and 2026 fiscal year guidance above expectations, but struggles to dispel market anxiety about AI disruption. Adobe released an optimistic annual performance guidance, but investors reacted tepidly. They have been looking for clearer signs that this software maker can thrive in the era of artificial intelligence (AI). Adobe said on Wednesday that it expects revenue for the fiscal year 2026 ending in November to reach $25.9 billion to $26.1 billion. While the mid-point of this forecast range exceeds the average Wall Street analyst expectation, it falls short of some analysts' expectations of over $26.4 billion. The company also forecasts adjusted earnings per share for fiscal 2026 to be between $23.30 and $23.50, slightly above the average Wall Street analyst expectation of $23.37. Meanwhile, in the fourth quarter of fiscal year 2025 ending on November 28, Adobe's revenue increased by 10% year-on-year, reaching a record $6.19 billion. Synopsys, Inc. (SNPS.US) "AI Shift" strategy paying off: partnering with NVIDIA Corporation to surpass expectations in guidance. Chip design software provider Synopsys, Inc. reported Q4 revenue of $2.26 billion, a 38% increase year-on-year, exceeding the expected $2.24 billion. Adjusted earnings per share were $2.90, while the market was generally expecting $2.88. The design automation business contributed $1.85 billion, and the design intellectual property business contributed $407 million. Adjusted operating profit increased by 36% year-on-year to $822.6 million, higher than the expected $803 million. Looking ahead, the company expects revenue for fiscal year 2026 to be between $9.56 billion and $9.66 billion, with analysts expecting $9.63 billion. The first quarter revenue is expected to be between $2.37 billion and $2.42 billion, with analysts expecting $2.36 billion; adjusted earnings per share for the first quarter are expected to be between $3.52 and $3.58, which is higher than the expected $3.46. Abandoning the pursuit of profits to capture the market! Stellantis (STLA.US) new CEO initiates "emergency room" reform action: abandoning high-profit pursuits for sales volume. According to four informed sources, Stellantis' new CEO Antonio Filosa is planning to adjust its strategy, prioritizing a growth in car sales over profits. By expanding low-margin fleet sales business and investing in budget vehicle models, the company aims to regain market share in North America and Europe and steer the global fourth-largest car manufacturer back on track for development. Filosa officially took over in June this year, and immediately launched a reform initiative dubbed the "emergency room" by informed sources, to clean up the mess left by former CEO Carlos Tavares. Tavares previously pursued a strategy of "cost cutting + price hikes" to chase high profit margins, which led directly to customer attrition. At the end of last year, Tavares was forced to resign. Battle between Warner Bros. (WBD.US): Trump orders CNN split, Democrats warn of Middle East fund infiltration. The battle for control of Warner Bros. Discovery has ignited war in Hollywood: unions condemn the potential unemployment crisis, the theater industry sounds the alarm for the future of movie distribution, and actors express concerns about freedom of speech. Now, the debate about whether Netflix (NFLX.US) or Paramount+ (PSKY.US) will ultimately be the acquirer is dividing America along political lines. In Republican circles, opposition to Netflix has become a trend. Paramount, led by David Ellison with close ties to the White House, has gained support from President Trump's son-in-law Jared Kushner in its bidding for Warner Bros. On the other hand, some prominent Democrats have expressed opposition to Paramount's bid, questioning the $24 billion funding, some of which comes from the Middle East. Important Economic Data and Events Forecast 21:30 Beijing time: U.S. Trade Balance in September (US$ billion) (1204-1211), Initial Jobless Claims for the week ending December 6 (in thousands). 23:00 Beijing time: Final Value of Wholesale Inventories Month-on-Month for September in the U.S. (%). 01:00 the next day Beijing time: The Federal Reserve will release the U.S. household financial health data in the 2025 third-quarter fund flow report. Earnings Forecast Friday morning: Broadcom Inc. (AVGO.US), Costco (COST.US).