Dollar Choppy as Risk-Off Mood and Dovish Fed Unsettle Markets Amid Oracle Earnings Concerns
Oracle earnings miss triggers risk-off selloff despite dovish Fed rate cut.
Insights:
The dollar found support on Thursday from a broad risk-off mood in markets, but failed to recoup its overnight losses against peers such as the euro, yen and sterling after the Federal Reserve delivered a less hawkish outlook than some had expected. The currency whipsaw reflects competing forces: macro policy dovishness from the Fed versus micro-level earnings concerns that have rattled investor confidence across multiple asset classes.
Investors in Asia dumped risk assets such as stocks and cryptocurrencies after disappointing earnings from U.S.
US cloud computing giant Oracle reignited fears that surging AI infrastructure costs could outpace profitability. The earnings miss exposed a critical vulnerability in the cloud computing sector's investment thesis—whether massive capital expenditures on artificial intelligence infrastructure can deliver proportional returns. That helped stem the safe-haven dollar's slide, which initially faced selling pressure after remarks from Fed Chair Jerome Powelljerome powell surprised some who had been positioned for a more hawkish tone.
US cloud computing giant Oracle reignited fears that surging AI infrastructure costs could outpace profitability. The earnings miss exposed a critical vulnerability in the cloud computing sector's investment thesis—whether massive capital expenditures on artificial intelligence infrastructure can deliver proportional returns. That helped stem the safe-haven dollar's slide, which initially faced selling pressure after remarks from Fed Chair Jerome Powelljerome powell surprised some who had been positioned for a more hawkish tone.
