US stocks surged on Wednesday as investors reacted positively to a mix of strong corporate earnings and easing inflation pressures.
The S&P 500 and Nasdaq Composite both rose about 0.5%, hitting record highs, while the Dow Jones Industrial Average fell 0.3%, held back by its smaller allocation to technology stocks.
Investors cheered a surprise drop in wholesale prices that strengthened bets on a Federal Reserve rate cut next week, but Apple’s slide kept the Dow in the red.
At the heart of the rally was Oracle’s staggering 41% surge, its biggest one-day jump since 1992, after the tech giant unveiled a bold forecast that its cloud revenue tied to artificial intelligence will soar to $144 billion by 2030.
The stock’s spike sparked a broader rally in Nvidia, AMD, and Broadcom, reaffirming that Wall Street’s AI enthusiasm remains a powerful market driver.
ALSO READ: Larry Ellison dumps Elon Musk, becomes world’s richest person overnight— largest single-day gain ever, what is his net worth?
The latest Producer Price Index (PPI) showed wholesale inflation unexpectedly fell 0.1% in August versus economists’ forecast for a 0.3% increase.
Core PPI also slipped, easing pressure on the Fed just ahead of Thursday’s Consumer Price Index (CPI) report.
If CPI confirms a steady cooling trend, traders say the central bank could go beyond a quarter-point cut and deliver a larger 50 basis point reduction, potentially igniting an even stronger year-end rally.
Shares exploded higher, up 41% to $341.50 by midday, the stock’s best single-day gain since 1992. The catalyst? A 1,529% surge in multicloud database revenue tied to partnerships with Amazon, Google, and Microsoft.
The AI buildout was the clear driver, with Oracle revealing that demand for AI servers has far outpaced expectations. Despite missing quarterly earnings estimates, the market rewarded its aggressive capital expenditure plan, which will now reach $35 billion in fiscal 2026, well above prior forecasts.
Oracle’s rally rippled across the tech sector:
Analysts noted the unveiling lacked “wow” features to reignite consumer excitement, raising concerns that Apple’s smartphone sales momentum could stall.
Year-to-date, Apple stock is down 9%, making it the worst performer among the “Magnificent Seven” alongside Tesla.
Economists surveyed by Dow Jones had expected a 0.3% increase. The core PPI, which strips out food and energy, also fell 0.1%, another sharp miss versus expectations.
This softer inflation reading comes just a day before the release of the Consumer Price Index (CPI), the Fed’s preferred inflation barometer. Economists project CPI to rise 0.3% month-over-month, which would push annual headline inflation to 2.9%, while the core reading likely stays at 3.1%.
With both job market weakness (following a large BLS jobs data revision) and inflation easing, traders are now pricing in near certainty of a Fed rate cut next week.
According to CME’s FedWatch tool, expectations for a 25 basis point cut are locked in, with growing bets that policymakers could opt for a bolder 50 basis point reduction.
This divergence shows that sector composition matters. Tech-heavy indexes like Nasdaq and S&P 500 tend to respond faster to AI-related earnings and growth expectations, while more traditional sectors lag behind when tech rallies.
Rising revenue from both technology and consumer-focused companies suggests a broader market trend. Investors are increasingly focused on companies that are innovating and adapting to new technologies, particularly AI.
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The S&P 500 and Nasdaq Composite both rose about 0.5%, hitting record highs, while the Dow Jones Industrial Average fell 0.3%, held back by its smaller allocation to technology stocks.
Investors cheered a surprise drop in wholesale prices that strengthened bets on a Federal Reserve rate cut next week, but Apple’s slide kept the Dow in the red.
At the heart of the rally was Oracle’s staggering 41% surge, its biggest one-day jump since 1992, after the tech giant unveiled a bold forecast that its cloud revenue tied to artificial intelligence will soar to $144 billion by 2030.
The stock’s spike sparked a broader rally in Nvidia, AMD, and Broadcom, reaffirming that Wall Street’s AI enthusiasm remains a powerful market driver.
ALSO READ: Larry Ellison dumps Elon Musk, becomes world’s richest person overnight— largest single-day gain ever, what is his net worth?
The latest Producer Price Index (PPI) showed wholesale inflation unexpectedly fell 0.1% in August versus economists’ forecast for a 0.3% increase.
Core PPI also slipped, easing pressure on the Fed just ahead of Thursday’s Consumer Price Index (CPI) report.
If CPI confirms a steady cooling trend, traders say the central bank could go beyond a quarter-point cut and deliver a larger 50 basis point reduction, potentially igniting an even stronger year-end rally.
US Stock Performance Today:
- S&P 500: Rose 0.5%, reaching a new record high as tech stocks led gains.
- Nasdaq Composite: Also climbed 0.5%, driven by strong AI-related earnings from Oracle.
- Dow Jones Industrial Average: Fell 0.3%, lagging due to lower technology exposure.
Oracle Stock
Oracle became the headline-grabber on Wall Street, soaring more than 40% in one day after its leadership revealed massive growth in AI-related cloud services. Its multicloud database revenue — supplied by giants like Amazon, Google, and Microsoft — surged over 1,500% last quarter.Shares exploded higher, up 41% to $341.50 by midday, the stock’s best single-day gain since 1992. The catalyst? A 1,529% surge in multicloud database revenue tied to partnerships with Amazon, Google, and Microsoft.
The AI buildout was the clear driver, with Oracle revealing that demand for AI servers has far outpaced expectations. Despite missing quarterly earnings estimates, the market rewarded its aggressive capital expenditure plan, which will now reach $35 billion in fiscal 2026, well above prior forecasts.
Oracle’s rally rippled across the tech sector:
- Nvidia (NVDA) jumped nearly 4%, as Oracle remains one of its largest GPU customers.
- AMD (AMD) gained 3.4%, also riding AI demand momentum.
- Broadcom (AVGO) soared 9% as traders linked Oracle’s guidance to chip supply demand.
Apple dragged the Dow lower
While tech enthusiasm lifted the Nasdaq, Apple (AAPL) weighed on the Dow. Shares slid more than 3%, adding to Tuesday’s 1.5% drop, after the company’s iPhone Air and iPhone 17 launch underwhelmed investors.Analysts noted the unveiling lacked “wow” features to reignite consumer excitement, raising concerns that Apple’s smartphone sales momentum could stall.
Year-to-date, Apple stock is down 9%, making it the worst performer among the “Magnificent Seven” alongside Tesla.
Other corporate movers stood out today
Several individual names added extra volatility to Wednesday’s session:- Potbelly (PBPB) soared 31% after announcing it will be acquired by RaceTrac for $566 million in cash. The deal will expand Potbelly’s footprint from 445 restaurants to potentially four times that under RaceTrac’s ownership.
- GameStop (GME) shares jumped more than 20% on stronger-than-expected quarterly revenue.
- Vistra (VST) climbed 7%, viewed as an energy play benefiting from the AI data center buildout.
How Did Inflation Impact Market Sentiment?
Markets got a surprise when the Producer Price Index (PPI), a measure of wholesale inflation, unexpectedly declined by 0.1% in August.Economists surveyed by Dow Jones had expected a 0.3% increase. The core PPI, which strips out food and energy, also fell 0.1%, another sharp miss versus expectations.
This softer inflation reading comes just a day before the release of the Consumer Price Index (CPI), the Fed’s preferred inflation barometer. Economists project CPI to rise 0.3% month-over-month, which would push annual headline inflation to 2.9%, while the core reading likely stays at 3.1%.
With both job market weakness (following a large BLS jobs data revision) and inflation easing, traders are now pricing in near certainty of a Fed rate cut next week.
According to CME’s FedWatch tool, expectations for a 25 basis point cut are locked in, with growing bets that policymakers could opt for a bolder 50 basis point reduction.
Dow lag behind
While the S&P 500 and Nasdaq enjoyed gains, the Dow Jones Industrial Average lost around 184 points. The Dow includes fewer technology stocks, so it did not benefit as much from Oracle’s surge or other tech-driven optimism.This divergence shows that sector composition matters. Tech-heavy indexes like Nasdaq and S&P 500 tend to respond faster to AI-related earnings and growth expectations, while more traditional sectors lag behind when tech rallies.
Other Companies which Boosted Investor Confidence
Beyond Oracle, companies like GameStop also reported stronger-than-expected earnings, with quarterly revenue up more than 20%. These positive reports add to the sense that corporate growth is accelerating, giving investors confidence to stay in the market.Rising revenue from both technology and consumer-focused companies suggests a broader market trend. Investors are increasingly focused on companies that are innovating and adapting to new technologies, particularly AI.
How Should Investors Approach the Market Now?
With rates expected to fall and AI-driven earnings surging, investors might consider the following strategies:- Focus on growth and tech stocks: Companies investing in AI or cloud infrastructure could continue to see strong revenue gains.
- Monitor inflation trends: CPI readings will influence Fed decisions and market direction.
- Diversify across sectors: While tech is performing well, traditional sectors like industrials may lag but still provide stability.
- Be mindful of Fed policy: Interest rate moves can create short-term market volatility, so plan for both rallies and pullbacks.
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What’s Ahead for Markets This Week?
- Thursday, September 11: CPI report — the most closely watched inflation indicator before the Fed meeting.
- Next Fed Meeting: Interest rate decision — likely to set the tone for stock and bond markets.
- Corporate Earnings Updates: Watch tech companies and AI-focused firms for further guidance.
