US: Oracle surge lifts S&P 500 to record as Dow declines
[NEW YORK] The S&P 500 finished at a new record Wednesday behind a huge rally in Oracle shares as major US indices diverged ahead of key consumer inflation data.
Shares of Oracle surged more than 36 percent after the software giant projected huge revenue growth in the next few years as it prospers from the artificial intelligence investment boom.
Those gains helped lift the S&P 500 by 0.3 per cent to 6,532.05, a second straight record.
The tech-rich Nasdaq Composite Index edged up less than 0.1 percent to 21,886.06, also a record, while the Dow Jones Industrial Average dropped 0.5 percent to 45,490.92.
US equities have been on a tear in recent sessions as markets anticipate a likely Federal Reserve interest rate cut next week amid signs of a weakening US employment market.
Those expectations were reinforced by a surprise 0.1 percent decline in the producer price index in August, according to government data. US consumer price data for the same period will be released Thursday.
The producer data suggests “muted” inflation impact from tariffs and that “businesses are absorbing at least part of tariff costs,” said a note from FHN Financial’s Will Compernolle. “Nothing in today’s data should sway the Fed from cutting rates next week.” AFP
