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Fed Minutes, Palo Alto Networks Slump Drive Market Shifts

Investing.com News •
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U.S. stock futures rose ahead of the Federal Reserve’s January meeting minutes release, with investors monitoring potential rate path signals. Two Fed governors dissented from the rate hold, citing stabilizing jobs and inflation, while officials expect rates to remain at 3.5%-3.75% until June. Fed Chair Jerome Powell’s tenure nears its end as Trump’s nominee Kevin Warsh prepares to take over, raising questions about future policy shifts.

Palo Alto Networks shares plummeted after missing profit guidance despite beating quarterly earnings. The cybersecurity firm reported $1.03 per share on $2.59 billion revenue, below analyst expectations of $0.94 per share. Full-year earnings guidance dropped to $3.65-$3.70, down from $3.80-$3.90, sparking concerns about AI investment returns. Analysts noted lingering fears about tech sector volatility amid AI disruption.

Berkshire Hathaway trimmed stakes in Apple and Bank of America while acquiring New York Times shares. Warren Buffett’s final quarter saw $10.3 million in Apple shares sold and 50.8 million Bank of America shares cut, though 5.1 million New York Times shares were added. The move reflects shifting priorities as Buffett transitions leadership to Greg Abel.

Oil prices edged up as U.S.-Iran nuclear talks progressed, easing supply fears. April crude futures hit $67.61 per barrel, while WTI rose 0.2% to $62.40. A potential deal could boost Iranian oil exports through the Strait of Hormuz, a critical global energy corridor. Markets remain watchful for geopolitical developments impacting energy flows.