The S&P 500 and Nasdaq notched record-high closes on Wednesday, as Oracle surged and cooler-than-expected inflation data supported expectations the US Federal Reserve will cut interest rates next week.
Oracle soared 36 percent in its biggest one-day percentage gain since 1992 after the tech company pointed to a demand surge from AI firms for its cloud services.
Its stock market value reached $922 billion, leapfrogging the values of Eli Lilly, JPMorgan Chase and Walmart, and approaching Tesla’s $1.12 trillion market value.
Oracle’s stock rises more sharply than others over the year, moving ahead of its competitors.
Artificial intelligence-related chip stocks also rallied, with Nvidia up 3.8 percent, Broadcom jumping 10 percent and Advanced Micro Devices climbing 2.4 percent. The PHLX chip index (.SOX), opens new tab rose 2.3 percent to a record high.
Data center power suppliers also benefited, with Constellation Energy , Vistra and GE Vernova all rising more than 6 percent.
Apple, viewed by many investors as lagging in the race to dominate AI, declined 3.2 percent, sliding for a fourth straight session.
A cooler-than-expected producer prices reading provided additional momentum as traders shored up their bets on interest-rate cuts this year.
Recent labor market data has confirmed the US jobs market is in a slowdown.
Traders fully expect the Fed to cut interest rates by at least 25 basis points at its policy meeting next week, with a 10 percent chance the central bank could cut by 50 basis points, CME’s FedWatch tool showed.
The S&P 500 has now climbed about 11 percent in 2025, while the Nasdaq has rallied about 13 percent.
“The fundamentals remain very strong in the equity markets, domestically. But we also have to acknowledge that valuations are extended at this point and serve as some natural tension to a continued upward trajectory,” said Bill Northey, senior investment director at US Bank Wealth Management in Billings, Montana.
The S&P 500 climbed 0.30 percent to end the session at 6,532.04 points, closing with a record high for the second straight day.
