FX.co ★ S&P 500 Set For New Record as Oracle Surges, PPI Cools

On Wednesday, US stock markets reached new heights, buoyed by encouraging inflation data and a robust forecast from Oracle. The S&P 500 rose by 0.2%, while the Nasdaq 100 remained steady, with both indices hitting intraday records. Conversely, the Dow Jones Industrial Average fell by over 200 points due to a decline in Apple shares. According to new data, the Producer Price Index (PPI) decreased by 0.1% in August, contrary to expectations of a 0.3% rise. This marks the first monthly decline in four months, suggesting a reduction in price pressures. Annually, the PPI recorded an increase of 2.6%, which is below the anticipated 3.3%, raising hopes that Thursday’s Consumer Price Index (CPI) report will further confirm the trend of disinflation. Technology stocks were the primary drivers of the gains, with Oracle’s shares jumping 34% after announcing a significant increase in cloud bookings driven by AI demand, which also boosted Nvidia by 3.3% and AMD by 2%. However, Apple shares fell by 1.6% following a lackluster launch of its new iPhone 17. The unexpected inflation data, along with weaker labor market figures, has prompted speculation that the Federal Reserve might reduce interest rates by 50 basis points next week, instead of the anticipated quarter-point adjustment.