Wall Street futures moved lower on Friday as renewed concerns about the health of U.S. regional banks combined with persistent trade tensions between Washington and Beijing. Oracle Corporation (NYSE:ORCL) shared a bullish long-term outlook fueled by soaring AI demand, CSX Transportation (NASDAQ:CSX) posted earnings that beat expectations despite weaker profit, and Micron Technology (NASDAQ:MU) is reportedly preparing to halt server chip supplies to Chinese data centers. Meanwhile, gold prices pushed deeper into record territory.
Futures Extend Losses
U.S. equity futures pointed to another downbeat session as worries over credit quality at regional banks weighed on sentiment. By 03:46 ET, Dow futures were down 546 points (1.2%), S&P 500 futures fell 96 points (1.5%), and Nasdaq 100 futures slid 382 points (1.5%).
The drop follows Thursday’s selloff, triggered by a negative credit update from Zions Bancorporation, which amplified concerns surrounding the recent collapses of auto parts supplier First Brands and dealership TriColor. Zions shares tumbled 13%, while Western Alliance Bancorporation fell more than 10% after revealing a fraud lawsuit against a borrower. Rising Treasury yields intensified pressure across equities.
Analysts at Vital Knowledge noted that “people [are growing] more concerned about a potential systemic problem,” but added that “based on all the bank reports thus far, it does seem like First Brands and TriColor are isolated, as credit quality in aggregate remains healthy.”
Oracle’s AI-Fueled Forecast
Oracle Corporation presented a strong long-term growth outlook on Thursday, crediting demand for artificial intelligence technology that executives described as “really hard to comprehend.”
The company expects revenue of $225 billion and adjusted earnings of $21 per share by fiscal 2030, both surpassing analyst estimates. Nearly two-thirds of that revenue is projected to come from Oracle’s AI-enhanced cloud infrastructure. CEO Clay Magouyrk said new bookings are arriving from a wide range of customers, not just OpenAI.
Analysts noted that the upbeat guidance was largely anticipated but cautioned that margins could tighten as Oracle invests heavily in AI capacity. LSEG data cited by Reuters indicates that gross margins are expected to dip slightly by fiscal 2027. Oracle’s stock moved lower in after-hours trading.
CSX Delivers Earnings Beat
CSX Transportation shares rose in after-hours trading after the company reported third-quarter profit of $694 million, or $0.37 per share, down from a year earlier. Excluding a $164 million impairment charge, earnings came in at $0.44 a share, slightly ahead of Wall Street forecasts.
CEO Steve Angel suggested that the company would consider “any strategic options” that make sense, renewing speculation around industry consolidation. Earlier this year, an $85 billion tie-up between Union Pacific and Norfolk Southern fueled rumors of further mergers.
CSX and BNSF Railway already struck a partnership in August to link routes between the U.S. East and West Coasts, easing some speculation about a full merger. However, activist investor Ancora Holdings continues to press CSX to pursue strategic deals.
Micron Reportedly Halts Server Chip Shipments to China
Micron Technology is planning to stop supplying server chips to Chinese data centers, according to Reuters, citing two people familiar with the matter.
The move follows China’s 2023 ban on Micron products in “critical infrastructure,” widely seen as a response to U.S. export controls on advanced technologies. Micron will continue to sell to Chinese companies operating data centers outside China, including Lenovo Group, as well as to the automotive and smartphone industries. China represented around 12% of Micron’s revenue last year.
Gold Pushes Higher
Gold prices extended their record-breaking run as expectations of a Federal Reserve rate cut this month, combined with trade tensions, drove demand for safe-haven assets. Spot gold rose 0.3% to $4,339.28 per ounce at 03:33 ET, after touching $4,379.29 earlier in the session. December U.S. gold futures gained 1.0% to $4,348.86.
The metal is on track for its ninth straight weekly gain and fifth consecutive session of record highs. Beyond Fed policy expectations, gold’s strength is underpinned by central bank buying, ETF inflows, and strong Asian demand. Renewed U.S.-China trade tensions and concerns over a prolonged U.S. government shutdown have added further momentum to the rally.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.