The U.S. stock market experienced significant volatility following Starbucks Corporation's (SBUX) release of its fiscal 2025 third-quarter earnings report. While the coffee giant surpassed revenue expectations, its core profitability metrics fell short of analyst projections.

Starbucks reported quarterly revenue of $9.46 billion , marking a 4% year-over-year increase and exceeding the consensus estimate of $9.31 billion. However, earnings per share (EPS) came in at $0.50 , significantly below the anticipated $0.65. Global comparable store sales declined by 2%, worse than the expected 1.5% drop.

Mixed Performance Across Key Markets

Despite these challenges, Starbucks demonstrated strong recovery momentum in its two largest markets. Both North America and China showed positive consumer metrics, indicating the company retains significant growth potential in these critical regions.

"While we remain cautious about Q4 performance, we're confident Starbucks will enter a new wave of innovation by 2026," said CEO Brian Niccol during the earnings call.

This optimistic outlook helped Starbucks shares rise approximately 4% in after-hours trading, as investors appeared to focus on the long-term growth narrative rather than the immediate earnings miss.

SoFi's Sudden Plunge After Share Offering Announcement

In contrast to Starbucks' after-hours gain, financial technology company SoFi Technologies (SOFI) saw its shares tumble about 7% following news of a $1.5 billion share offering. The new shares will be sold at a discount of up to 6.9%, with Goldman Sachs serving as the lead underwriter.

The offering came despite SoFi reporting better-than-expected second-quarter results that had driven its stock price up 45% year-to-date prior to the announcement. Market reaction was swift and negative, with significant selling pressure emerging in after-hours trading.

Fed Meeting Looms as Markets Await Rate Clues

Investors are increasingly focused on the Federal Reserve's upcoming meeting, where policymakers are expected to maintain interest rates unchanged for the fifth consecutive time. Market participants will scrutinize Chair Jerome Powell's remarks for any signals about potential rate cuts later this year.

While internal Fed divisions persist, with September being the earliest possible timing for policy easing, Powell will likely emphasize the central bank's data-dependent approach. Current market pricing suggests over a 60% probability of a September rate cut, though the Fed may attempt to temper these expectations.

Future monetary policy decisions will hinge on incoming inflation and employment data, along with potential political pressures, making these economic indicators particularly crucial for investors to monitor in coming months.