FX.co ★ S&P 500, Nasdaq 100 Extend Record Highs

US stocks reached new all-time highs on Wednesday, driven by encouraging inflation figures and an optimistic forecast from Oracle. The S&P 500 advanced by 0.3% and the Nasdaq 100 experienced a modest increase, with both indices closing at unprecedented levels. In contrast, the Dow Jones Industrial Average fell by 213 points, primarily due to weakness in Apple shares. The Producer Price Index (PPI) for August declined by 0.1%, defying expectations of a 0.3% increase, marking its first monthly decrease in four months. The annual PPI registered at 2.6%, below the anticipated 3.3%, enhancing hopes that the forthcoming Consumer Price Index (CPI) report will further substantiate the disinflationary trend. Technology stocks spearheaded the market's gains as Oracle's shares soared by 35.9%, following the announcement of a significant surge in cloud bookings driven by AI demand. This development also lifted Nvidia shares by 3.8% and AMD by 2.4%. Conversely, Apple declined by 3.2% after the launch of its latest iPhone 17 failed to meet expectations. This unexpected inflation data, along with weak labor market indicators, has led to speculation that the Federal Reserve might consider a 50 basis point rate cut next week, in contrast to the anticipated quarter-point reduction.