S&P500 and Nasdaq 100: Oracle Powers Tech Stocks Today on AI Optimism and Forecast

S&P 500 Recovers as Oracle Surge Offsets Boeing Drag and Trade Concerns

The S&P 500 edged up 0.1% late Thursday morning, lifted by a sharp rally in Oracle shares that boosted the broader tech sector. The Nasdaq Composite followed suit with a 0.1% gain, while the Dow slipped 39 points, weighed by a sell-off in Boeing stock following a Dreamliner crash. Market sentiment remained cautious, as investors digested soft inflation data and renewed uncertainty surrounding U.S. trade policy.

How Did Oracle’s Earnings Push Tech Higher?

Oracle surged 11% after delivering fiscal Q4 earnings and revenue that exceeded expectations. CEO Safra Catz highlighted growing demand for AI-driven cloud infrastructure, projecting more than 70% growth in that segment by fiscal 2026. Oracle’s rally sparked gains in other mega-cap tech stocks, helping the sector lead the S&P 500.

The strong showing came as five S&P 500 components hit new all-time highs: Oracle, Microsoft, IBM, Amphenol, and Philip Morris. On the downside, defensive names like Brown-Forman, Conagra, and Campbell Soup hit 52-week lows, reflecting a market leaning back into risk assets.

Is the Federal Reserve Getting Relief from Inflation Data?

Fresh inflation data supported the case for a patient Federal Reserve. May’s producer price index rose just 0.1%, softer than the expected 0.2%. Core PPI also rose only 0.1%. Bond yields retreated slightly following the report, hinting that traders see reduced pressure on the Fed to hike rates in the near term.

At the same time, initial jobless claims remained flat at 248,000, while continuing claims rose to 1.96 million—the highest since late 2021. While labor data remains stable, the uptick in ongoing claims suggests potential softening in job retention.

How Are Geopolitical Tensions and Oil Prices Interacting?

Oil prices declined roughly 2%, reversing part of Wednesday’s 4% spike triggered by evacuation plans for U.S. embassy staff in Iraq. Brent fell to $68.42, while WTI settled at $66.77. Investors are now watching Israel, which may consider military action against Iran without U.S. backing.

Will Trade Policy Headlines Disrupt Market Momentum?

While the equity rebound has been resilient, former President Trump’s tariff threat has kept a ceiling on gains. His comments suggest potential extensions to a July 8 trade deadline, but concrete progress remains elusive. Talks with China yielded a tentative framework, though it awaits presidential approval. Traders are increasingly sensitive to tariff risks as the U.S. Dollar Index fell to a three-year low.

Market Outlook: Can Momentum Hold Without Trade Clarity?

With inflation cooling and AI-driven tech optimism building, equities are finding support. However, the lack of a finalized trade deal continues to cap upside. As Wells Fargo notes, volatility tied to policy could present tactical entry points. Traders will monitor upcoming Fed commentary and any breakthroughs in trade negotiations for cues on direction.

More Information in our Economic Calendar.