Oracle's AI Surge Lifts Markets Amid Global Tensions

The S&P 500 closed higher Thursday, driven by optimism surrounding Oracle's positive AI-driven revenue outlook. Oracle's stock soared to record levels, helping mitigate concerns about geopolitical tensions in the Middle East and a significant drop in Boeing shares following a deadly crash in India.

Market analysts like Art Hogan of B. Riley Wealth highlight Oracle's key role in the ongoing AI investment wave, which also positively impacts tech heavyweights Microsoft and Nvidia. Meanwhile, President Donald Trump announced strategic personnel relocations in response to escalating Middle East tensions, casting a shadow over global financial markets.

Economic indicators provided some relief, with softer producer price data and initial jobless claims suggesting potential labor market weakness, fueling expectations of a Federal Reserve interest rate cut. Traders estimate a 60% likelihood of a rate reduction by September. In the broader context, speculation about Trump's upcoming trade deals contributed to investor optimism, as reflected in the marginal recovery of U.S. markets.

(With inputs from agencies.)