Wall Street's Bullish Momentum: The Impact of Falling Producer Prices and Oracle's Surge

U.S. stock markets appeared set for a positive open on Wednesday, buoyed by unexpectedly low producer inflation numbers and Oracle's impressive performance in cloud computing. These factors have heightened expectations for an interest-rate cut by the Federal Reserve this September.

The drop in producer prices, a key economic indicator, was mainly due to a decline in the cost of services, providing a hopeful sign for investors and strengthening the Fed's flexibility to reduce rates. Financial betting indicated a 90% chance of a 25-basis-point cut in the upcoming Federal Reserve meeting.

Oracle's forecast of substantial revenue growth in its cloud infrastructure division sent its stock surging, which had a positive ripple effect on related sectors like chipmakers and power supply companies. Meanwhile, Barclays bolstered market sentiment by raising their year-end target for the S&P 500 to 6,450. All this occurs as the U.S. enters September, a month traditionally seen as challenging for equities.

(With inputs from agencies.)