Wall Street rallied Wednesday, led by a blockbuster spike in Oracle’s stock, as markets looked past inflation fears and embraced the narrative that rate cuts are nearing. Oracle’s stunning performance became the day’s storyline, drawing fresh optimism into equities and reinforcing confidence in the AI-driven economic cycle.

Oracle’s shares exploded upward, jumping around 31% after the company forecasted its Oracle Cloud Infrastructure would surpass $500 billion in revenue. That abruptly bold outlook drove tech confidence across related sectors. Chipmakers and infrastructure names like Nvidia, AMD, and Broadcom all joined the rally, buoyed by renewed optimism about data center demand and enterprise cloud spending. Futures on the S&P 500 and Nasdaq climbed accordingly, tracking toward fresh intraday record levels.

At the same time, producer prices came in notably lower than expected. The surprise, seen as evidence that inflation may be cooling more broadly, helped push Treasury yields lower and sharpened the market’s pricing of a Fed rate cut at the upcoming September meeting. The data fed into the sense that pressure on central banks is building.

But the day was about more than macro and monetary policy. Oracle’s earnings forecast proved powerful enough to swing sentiment across the board, an AI lever strong enough to reshape markets. The stock’s move reinforced the notion that high-quality growth stories remain central to rallying equities, even as economic data may point toward fragility.

In short, Oracle brought confidence back to the market with one bold beat, and investors responded. The story now rests on whether this AI-led narrative can sustain the rally against still-nervous inflation data and shifting central bank eyes.

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