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.
Summary
- S&P 500 jumped 0.5% as stocks amid the latest PPI report.
- Oracle shares jumped 40% and were on pace for biggest gains single-day gains since 1992.
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.
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.
Bitcoin (BTC) climbed above $114k.
PPI data helps S&P 500 rise
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.
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.
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Oracle stock jumps 40% amid positive outlook
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.
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.
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.
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