FX.co ★ S&P, Nasdaq Hit New Highs After Soft PPI; Oracle Surges

The S&P 500 increased by 0.4%, while the Nasdaq climbed 0.3% to reach new record highs on Wednesday. Meanwhile, the Dow Jones remained largely unchanged after a weaker-than-anticipated Producer Price Index (PPI) report bolstered expectations that the Federal Reserve has room to reduce interest rates, both in the upcoming week and later in the year. The unexpected 0.1% decline in producer prices for August, coupled with a downward revision for July’s figures, points to diminishing annual rates and indicates that tariff-induced price pressures are not yet fully apparent. This scenario provides the Fed with additional flexibility to adjust monetary policy, particularly as signs of a notable slowdown in the labor market emerge. Market participants are now looking forward to the Consumer Price Index (CPI) report set to be released tomorrow. Leading the day's performance was the technology sector, where Oracle's shares skyrocketed nearly 35% to a record high of $317.40, driven by an optimistic forecast for its cloud division. Nvidia saw an increase of 3.7%, and Broadcom rose by 6%. Conversely, Apple's shares declined by 1.6%, as the newly launched iPhone 17 failed to meet investors' expectations.