Nasdaq 100 and S&P500: Oracle’s AI Boom Lifts Tech Stocks, Eyes on Fed Cut

The S&P 500 climbed 0.5% to a fresh record Wednesday, lifted by cooling wholesale inflation and renewed rate cut hopes. The Nasdaq Composite also gained 0.5% and reached an all-time intraday high. Oracle’s explosive AI-driven outlook powered tech gains, while the Dow Jones Industrial Average lagged, dropping 216 points, or 0.5%.

Will Soft PPI and CPI Push the Fed to Cut Rates?

August’s Producer Price Index fell 0.1%, defying forecasts for a 0.3% increase. Core PPI, excluding food and energy, also declined 0.1%. The data sets the stage for Thursday’s CPI report, with expectations for a 0.3% monthly increase in both headline and core readings. If met, the annual CPI rate would tick up to 2.9%, with core staying at 3.1%.

Oracle shares spiked 32% after revealing multicloud database revenue from Amazon, Google, and Microsoft soared 1,529% in the last quarter. Despite missing on top and bottom lines for Q1, the company’s long-term AI-driven cloud forecast—targeting $144 billion in revenue by fiscal 2030—overshadowed the shortfall.

The AI momentum spread to Nvidia and AMD, both gaining on renewed interest in the sector. Taiwan Semiconductor also rose more than 2% after reporting a 33.8% year-over-year increase in August revenue.

Earnings Movers: GameStop, Synopsys, and AeroVironment React to Reports

GameStop Corporation popped over 10% after posting better-than-expected earnings of 25 cents per share on $972.2 million in revenue. Investors also noted $528.6 million in bitcoin holdings. AeroVironment rose 2.8% after beating revenue estimates, though EPS missed. The company guided toward fiscal 2026 earnings of $3.60–$3.70 on up to $2 billion in revenue, in line with analyst expectations.

Synopsys slumped 23% after missing both earnings and revenue forecasts, delivering $3.39 per share on $1.74 billion in sales.

Outlook: CPI to Confirm Fed Cut Path or Reset Expectations

Traders now await the CPI report to confirm the Fed’s next move. A soft print may lock in a September rate cut and bolster tech further, while a hot read could test the recent rally. Sector and yield sensitivity remains elevated—positioning will likely pivot quickly depending on the inflation signal.