Oracle's AI Boom Boosts U.S. Stocks Amid Middle East Tensions
U.S. stocks climbed after Oracle's optimistic forecast for AI-related services buoyed market sentiment, despite concerns about Middle East tensions and a Boeing crash. Major tech stocks like Microsoft and Nvidia posted gains. Meanwhile, signs of a potential U.S. interest rate cut further contributed to positive investor sentiment.
U.S. stock markets experienced an upswing on Thursday, driven by Oracle's robust forecast for AI services, which offset investor anxiety over Middle East tensions and a decline in Boeing shares. The cloud service provider's shares soared 14%, attributed to a strong demand for their AI solutions.
Art Hogan, chief market strategist at B. Riley Wealth, highlighted Oracle's role in the AI capital expenditure surge, benefitting major industry players like Microsoft and Nvidia, both of which posted gains of over 1%. Meanwhile, Boeing shares dropped nearly 5% following a tragic crash involving an Air India jet.
The S&P 500, Nasdaq, and Dow Jones indices all saw modest gains, with information technology and utilities sectors leading the rise. Speculation of a U.S. Federal Reserve interest rate cut grew stronger, following softer producer price data and jobless claims, potentially easing tariff-induced inflation concerns.
(With inputs from agencies.)
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