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Wall Street Climbs as Oracle’s AI Boom and Cooling Inflation Fuel Rate Cut Optimism
U.S. stocks pushed higher on Wednesday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq all advancing as investor sentiment brightened on two fronts — a blockbuster forecast from Oracle and fresh signs of easing inflation.
Oracle shares soared over 30% after the company projected a sharp jump in cloud revenue, driven by surging demand from major artificial intelligence clients. The upbeat outlook overshadowed a quarterly earnings miss and reinforced hopes that AI infrastructure spending is entering a new growth phase.
Adding to the bullish tone, the Producer Price Index (PPI) unexpectedly declined last month, rising just 2.6% year-over-year, a cooler reading than anticipated. The data bolstered expectations that the Federal Reserve will cut interest rates at its meeting next week, with markets now largely pricing in a September reduction.
The rally comes as traders also eye Thursday’s Consumer Price Index (CPI) report — the final major inflation gauge before the Fed’s decision. Meanwhile, corporate earnings remained in focus, with GameStop jumping on stronger revenue, while Chewy slid after reporting a steep profit drop.
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