US stocks rise on Oracle forecast

The S&P 500 jumped 0.3 per cent to hit a new record, while the Nasdaq Composite also closed above the flatline to eke out its own record

US stocks mostly rose on Wednesday as Oracle’s blowout revenue forecast lifted AI hopes, as its shares had their best day in more than three decades.

Meanwhile, wholesale inflation unexpectedly dropped last month, bolstering the case for the country’s central bank to reduce rates next week.

The S&P 500 jumped 0.3 per cent to hit a new record, while the Nasdaq Composite also closed above the flatline to eke out its own record. The Dow Jones Industrial Average, which includes fewer tech stocks, dropped 0.5 per cent from its record high.

Oracle stunned U.S. stock market as its CEO said its cloud revenue will skyrocket thanks to a big jump in bookings from the “who’s who of AI.” Its shares closed the day more than 36 per cent higher, amid optimism that the AI infrastructure build-out — seen as fuelling stock gains — is finally picking up pace.

Elsewhere, a reading on wholesale inflation came in much cooler than expected, showing producer prices actually dropped on a month-over-month basis vs. expectations for a 0.3 per cent rise. Year over year, the Producer Price Index is up 2.6 per cent, also lower than expectations for 3.3 per cent. The data sets the stage for the Consumer Price Index (CPI) release on Thursday, the last clue to price pressures before the central bank’s policy meeting next week.

Markets have been more focused on labor market data, however, to gauge the bank’s next move. A revision to US job numbers on Tuesday confirmed weakness in that market, cementing the conviction that a September rate cut is coming and stoking a rally in stocks.