Nasdaq Forecast: Oracle Soars, Nvidia Jumps as Tech Stocks Power US Indices Higher

S&P 500, Nasdaq Hit New Highs as Oracle Soars and Fed Rate Cut Bets Build

U.S. stocks extended gains Wednesday, with the S&P 500 and Nasdaq reaching fresh intraday highs, driven by a surge in Oracle and continued optimism over Federal Reserve policy easing. A cooler-than-expected read on producer prices supported views that inflation is slowing, reinforcing expectations for a rate cut later this year.

The S&P 500 rose 0.50% to 6,545.38, while the Nasdaq advanced 0.43% to 21,973.34. The Dow Jones lagged, slipping 0.43%, weighed by weakness in healthcare and consumer discretionary names.

Is Oracle’s AI-Driven Cloud Growth Fueling a New Tech Rally?

Oracle (ORCL) soared 41% to an all-time high after the company reported strong demand from AI firms for its cloud infrastructure services. The move marked its biggest one-day percentage gain since 1992 and boosted its market cap to $969 billion—overtaking JPMorgan, Walmart, and Eli Lilly, and closing in on Tesla’s $1.14 trillion valuation.

Oracle’s spike rippled across the tech sector. Nvidia jumped 4.3%, AMD climbed 3.8%, and Broadcom surged 9.6%, pushing the S&P 500 technology sector up 2.1%. The Philadelphia Semiconductor Index gained 2.6% to notch a new record.

Power suppliers tied to data centers also rallied. Constellation Energy rose 8%, Vistra added 9%, and GE Vernova gained 6.2%.

What’s Driving Fed Rate Cut Bets Higher?

Producer price index (PPI) data came in softer than expected, aligning with a string of labor market reports that suggest the jobs market is cooling. Traders are now pricing in a 90% probability of a 25-basis-point rate cut at the Fed’s September meeting, according to CME FedWatch. The chance of a more aggressive 50-bps cut stands at 10%.

However, Thursday’s Consumer Price Index (CPI) report looms large. GammaRoad Capital’s Jordan Rizzuto noted that any upside surprise in CPI could quickly derail the market’s dovish rate expectations.

Are All Sectors Sharing the Upside?

Despite strength in tech, the Dow underperformed as consumer discretionary and healthcare stocks dragged. Meanwhile, Synopsys plunged 33.7%—its largest single-day drop on record—after missing revenue estimates. Peer Cadence Design Systems fell 7%.

Market breadth remained solid with advancers outpacing decliners on both the NYSE and Nasdaq.

What’s Next for Traders?

Traders will turn their focus to Thursday’s CPI report, which could cement or challenge expectations for a September rate cut. While September tends to be historically weak for equities, sentiment remains supported by rate optimism and raised year-end S&P 500 targets from major brokerages like Barclays and Deutsche Bank.

More Information in our Economic Calendar.