{"id":73772,"date":"2026-10-28T16:08:18","date_gmt":"2026-10-28T20:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oracle-shares-surge-on-rosy-cash-flow-outlook-fed-holds-rates-steady\/73772\/"},"modified":"2026-10-28T16:08:18","modified_gmt":"2026-10-28T20:08:18","slug":"oracle-shares-surge-on-rosy-cash-flow-outlook-fed-holds-rates-steady","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oracle-shares-surge-on-rosy-cash-flow-outlook-fed-holds-rates-steady\/73772\/","title":{"rendered":"Oracle Shares Surge on Rosy Cash Flow Outlook; Fed Holds Rates Steady"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>) shares surged 14%<\/strong> after forecasting <strong>$30 billion in free cash flow<\/strong> for fiscal 2029, significantly easing investor fears regarding its aggressive AI infrastructure spending.<\/li>\n<li><strong>The Federal Reserve held interest rates steady<\/strong> in a 10-2 vote, with Chairman <strong>Kevin Warsh<\/strong> announcing a structural overhaul to reduce the number of policy meetings starting next year.<\/li>\n<li><strong>UK Chancellor John Healey<\/strong> delivered his first Autumn Budget, prioritizing the &quot;cost of business&quot; while maintaining fiscal discipline inherited from his predecessor.<\/li>\n<li><strong>Iran and the U.S. remain in active mediation<\/strong> via Qatari intermediaries over a &quot;7-day plan&quot; to end hostilities, though Tehran has labeled recent proposals as &quot;unacceptable.&quot;<\/li>\n<\/ul>\n<h2>Oracle Eases AI Spending Concerns with $30B Cash Flow Target<\/h2>\n<p>Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>) provided a major boost to the technology sector on Wednesday, with shares jumping as much as <strong>14% to $148.48<\/strong>. The rally followed the company\u2019s investor day announcement, where it projected <strong>free cash flow will top $30 billion by fiscal 2029<\/strong>. This forecast suggests a rapid recovery from a projected <strong>negative $23.7 billion cash flow in fiscal 2026<\/strong>, as the company moves past its peak capital expenditure cycle.<\/p>\n<p>To further reassure the markets, Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>) pledged to <strong>cap additional fundraising at $20 billion<\/strong> through May 2030. This funding will be split evenly between <strong>debt and equity<\/strong>, with the company expecting to self-fund its growth starting in fiscal 2029. Management also reaffirmed its ambitious <strong>$225 billion revenue target for fiscal 2030<\/strong>, driven by massive demand for AI infrastructure and its partnership with <strong>OpenAI<\/strong>.<\/p>\n<h2>Fed Holds Rates Steady; Warsh Announces Structural Shift<\/h2>\n<p>The Federal Open Market Committee (FOMC) concluded its October meeting by keeping the benchmark interest rate unchanged at <strong>3.75%\u20134.00%<\/strong>. The decision was not unanimous, as two officials dissented in favor of a <strong>25-basis-point hike<\/strong>. Chairman <strong>Kevin Warsh<\/strong> noted that while financial conditions have tightened, the committee remains &quot;concerned, but not surprised&quot; by recent market volatility and remains committed to a <strong>2% inflation target<\/strong>.<\/p>\n<p>In a significant policy shift, Warsh announced that the Fed will <strong>reduce the number of policy-setting meetings<\/strong> from eight to seven next year. By 2028, the schedule may further contract to six policy meetings, with others dedicated solely to long-term strategy. Warsh emphasized that &quot;quashing inflation is not about a fixed calendar date,&quot; signaling a move toward a more flexible, data-dependent operational framework.<\/p>\n<h2>UK Budget Focuses on &quot;Breathing Space&quot; for Business<\/h2>\n<p>In London, Chancellor <strong>John Healey<\/strong> delivered an Autumn Budget aimed at providing &quot;breathing space&quot; for British households and enterprises. Healey emphasized that the <strong>cost of doing business<\/strong> has been a primary focus, introducing measures to cut administrative burdens and re-establishing the better regulation executive. The budget also included <strong>\u00a320.4 billion<\/strong> for the National Wealth Fund to stimulate private sector investment.<\/p>\n<p>Despite the supportive rhetoric for business, the Chancellor maintained a stance of <strong>fiscal discipline<\/strong>, paying tribute to the &quot;difficult decisions&quot; made by former Chancellor <strong>Rachel Reeves<\/strong>. The budget arrived against a backdrop of heightened energy costs and interest rates fueled by the ongoing conflict in the Middle East. Market reaction was largely neutral, with <strong>gilt yields remaining stable<\/strong> following the announcement.<\/p>\n<h2>Diplomatic Deadlock Continues in U.S.-Iran Mediation<\/h2>\n<p>Geopolitical tensions remain high as <strong>Iran and the United States<\/strong> exchange proposals through Qatari and Pakistani mediators. Iranian Foreign Minister <strong>Abbas Araghchi<\/strong> confirmed that Tehran is reviewing a &quot;7-day plan&quot; to end military confrontation and potentially reopen the <strong>Strait of Hormuz<\/strong>. However, reports indicate that Tehran has rejected recent draft deals, calling certain ideas &quot;unacceptable&quot; due to the continued U.S. blockade of Iranian ports.<\/p>\n<p>The conflict has already incurred a <strong>$47.1 billion cost<\/strong> for the U.S. military as of mid-October. While diplomacy continues, the lack of a breakthrough keeps global energy markets on edge. Analysts note that the outcome of these negotiations remains the most significant &quot;wildcard&quot; for global inflation and supply chain stability heading into 2027.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Oracle (ORCL) shares surged 14% after forecasting $30 billion in free cash flow for fiscal 2029, significantly easing 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