Surge in Oracle Shares Propels Market Amid Rate Cut Hopes

The S&P 500 and Nasdaq reached new intraday highs, fueled by a rise in Oracle stock following increased cloud service demand from AI firms. Cooler producer price data supports rate cuts, though concerns over inflation remain. Oracle surged 41%, boosting tech and chip stocks, while labor data hinted at a slowing job market.

The S&P 500 and Nasdaq hit fresh peaks, mainly driven by a meteoric rise in Oracle shares, which leaped 41% as AI companies spurred a demand for cloud services.

This growth among tech stocks was boosted by unexpected declines in producer prices in August, prompting significant speculation about potential interest rate cuts by the Federal Reserve later this year.

As chip stocks rallied and Oracle's market cap approached that of Tesla, investor focus shifts to upcoming consumer price data for more U.S. inflation insights.

(With inputs from agencies.)