Market Rally Continues with S&P 500 Hitting Fresh Highs

U.S. stocks rose on Wednesday as investors reacted to new producer price index inflation data, and Oracle’s stock soared on a strong revenue forecast. The S&P 500 index jumped 0.5% in early trading while the Nasdaq Composite added 0.3%, with both indexes hitting fresh highs as bullish sentiment spread across risk asset markets.

Dow Jones Industrial Average Declines

Although the Dow Jones Industrial Average declined amid continued underperformance of the blue-chip index, gains for the benchmark S&P 500 buoyed buyers across the market. This decline did not seem to impact the overall market sentiment, as other major indexes continued to rise.

Bitcoin Surpasses $114k

Bitcoin climbed above $114k, adding to the overall positive sentiment in the market. This surge in cryptocurrency prices is a significant development, and investors will be watching to see if this trend continues.

PPI Data Drives Market Gains

Stocks rose as Wall Street reacted to the latest inflation reading, with producer price index data showing an encouraging decline in August. According to data from the Bureau of Labor Statistics, wholesale prices for August fell 0.1% over the month, versus economists’ estimates of +0.3%. Core PPI, which excludes food and energy, also fell 0.1%. Analysts had forecast a 0.3% uptick.

Impact of PPI on Interest Rates

PPI coming in below economists’ projections helped strengthen the upbeat sentiment that has pushed the S&P 500 to record highs despite trade and geopolitical uncertainty. Traders view the PPI as a signal that the Federal Reserve will cut interest rates during its September meeting scheduled for next week. This potential rate cut could have a significant impact on the market, and investors are eagerly awaiting the Fed’s decision.

Oracle Stock Jumps 40%

As the S&P 500 climbed to a record high, one of the shining stocks on the day was Oracle, a global tech and cloud behemoth. The company’s shares shot up 40% on Wednesday as the U.S.-based firm announced a major forecast on revenue in relation to its artificial intelligence business. For the latest news and updates on the stock market, visit bitpulse.

Oracle’s Record-Breaking Performance

Shares traded to highs of $341 and up over 40% as investors looked to clock Oracle’s best single day performance since 1992. The company’s market cap surpassed the $950 billion mark amid the price surge, with Oracle eyeing the $1 trillion market cap as stocks soared. This significant increase in market value is a testament to the company’s strong performance and growth potential.

Drivers of Oracle’s Gains

Gains largely followed the cloud provider’s report of remaining performance obligations. Notably, Oracle says it has $450 billion in RPO, more than twice Wall Street’s expectation of around $180 billion. This positive outlook has driven investor confidence in the company, leading to the significant surge in stock price. As the market continues to evolve, it will be interesting to see how Oracle’s stock performs in the coming days. Check bitpulse for the latest updates on Oracle and other major stocks.