Oracle’s 36% Moonshot Lifts S&P 500 to a New High as Apple Weighs on the Dow
Nasdaq also set a fresh high; cooler inflation data and falling yields boosted rate-cut bets.
What Happened
Oracle’s rally was fueled by news of multibillion-dollar AI partnerships. Options activity exploded with over 819,000 call contracts traded—many betting on prices above $350–$400.
The surge made Oracle the 10th-largest U.S. company, overtaking JPMorgan Chase. Investors also cheered as Klarna popped 15% in its NYSE debut.
Why It Matters
- Market breadth: Oracle’s spike offset Apple’s drag, underscoring how single-stock moves sway indexes.
- Inflation relief: Softer producer prices (−0.1% vs. +0.3% expected) strengthened bets on Fed rate cuts.
- Safe-haven bid: Gold hit a record $3,643/oz as geopolitical risks combined with easing expectations.
Other Movers
- Fed governance: Judge granted Lisa Cook an injunction blocking her removal, ensuring her vote next week.
- Klarna debut: Shares jumped 15% on first NYSE session.
- Trade tensions: Trump tied tariffs to Japan’s financing commitments under a new MOU.
Outlook
With CPI data due Thursday, markets are bracing for confirmation of disinflation. If consumer prices echo PPI’s softness, Fed cuts look more likely—keeping stocks near record highs. A hotter CPI, however, could re-ignite rate uncertainty.
Editor’s note: This analysis paraphrases reported market data for context and investor implications.
