Investors are closely monitoring the Federal Reserve’s upcoming interest rate decision, with tech giants Adobe and Broadcom, enterprise software leader Oracle, and retail heavyweight Costco among top stocks to watch. Market movements could hinge on inflation data and forward guidance.
- Federal Reserve expected to hold rates steady, with 78% probability of no change
- Adobe: Q3 revenue of $5.3 billion, up 12% YoY
- Oracle: Q4 revenue forecast of $13.1 billion, cloud segment performance under scrutiny
- Broadcom: Q4 revenue forecast of $11.8 billion, datacenter demand key focus
- Costco: U.S. same-store sales up 6.8% in November, membership growth at 4.5% annualized
- 10-year Treasury yield near 4.25%, influencing equity valuations
The Federal Reserve’s policy meeting this week is drawing intense focus as traders assess the likelihood of a rate hold or potential shift in monetary policy. With inflation pressures showing signs of moderation but still above target, financial markets are pricing in a 78% chance of no change in the benchmark federal funds rate, though expectations for a 25-basis-point cut in early 2026 are gaining traction. Among the equities drawing significant attention, Adobe reported Q3 revenue of $5.3 billion, up 12% year-over-year, driven by strong growth in its digital media and experience segments. Oracle’s fourth-quarter earnings, expected to show revenue of $13.1 billion, are anticipated to reflect resilience in cloud infrastructure, especially in the database and application software divisions. Broadcom’s Q4 forecast, which includes a projected $11.8 billion in revenue, is being scrutinized for signs of demand softening in the semiconductor sector, particularly in datacenter and networking segments. Costco Wholesale is also under the spotlight after its latest U.S. same-store sales rose 6.8% in November, exceeding estimates by 0.9 percentage points. The results underscore consumer spending strength despite persistent inflation, with membership growth continuing at a 4.5% annualized pace. Analysts note that Costco’s ability to maintain pricing discipline while delivering value could provide a bellwether for broader retail health. Stocks in the tech sector, particularly those with exposure to AI infrastructure and enterprise SaaS, are expected to see heightened volatility following the Fed’s statement. A dovish tone could boost equities, especially high-growth names like Adobe and Broadcom, while a hawkish pivot might favor value stocks and fixed-income assets. Market participants are also watching Treasury yields, with the 10-year yield currently trading around 4.25%.