Stock Markets Soar: Oracle Surges Amid AI Demand, Interest Rate Cuts Loom

The S&P 500 and the Nasdaq achieved intraday record highs on Wednesday, fueled by Oracle's remarkable 38% surge amid increasing demand from AI firms for its cloud services. Meanwhile, cooler-than-expected inflation data bolstered expectations that the Federal Reserve will enact interest rate cuts next week.

Oracle's stock market valuation climbed to $938 billion, surpassing those of Eli Lilly, JPMorgan Chase, and Walmart, nearing Tesla's $1.14 trillion mark. AI-related chip stocks experienced significant gains as well, with Nvidia up 4.3%, Broadcom jumping over 8%, and Advanced Micro Devices advancing by 3.4%.

Interest-rate cut bets were further reinforced by a cooler producer prices reading and slowing labor market data, which suggests the Fed will likely cut rates. The tech sector, in particular, has seen strong interest, even as some market valuations pose potential tension against continuous growth.

(With inputs from agencies.)