U.S. Stocks Edge Higher After PPI Drop; Oracle Leads Market Gains
U.S. stocks mostly rose on Wednesday, supported by weaker-than-expected factory-gate prices in August. The decline boosted hopes that the Federal Reserve will cut interest rates at next week’s policy meeting.
Wall Street Update
At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average fell 90 points, or 0.2%. The S&P 500 gained 30 points, or 0.5%, while the Nasdaq Composite added 100 points, also 0.5%.
All three major indexes closed at record highs on Tuesday, with optimism driven by expectations of a Fed rate cut. A sharp downward revision to U.S. employment figures suggested the labor market may have been cooling even before President Donald Trump announced new import tariffs in April.
Bets for a 25 basis point Fed cut at the September 16–17 meeting remain strong, with a growing chance of a deeper 50 basis point reduction.
Producer Prices Decline
The producer price index (PPI) fell 0.1% in August, according to the Bureau of Labor Statistics. Economists had expected a 0.3% increase after July’s 0.7% rise.
Services drove the decline, while goods prices saw only a small 0.1% uptick. Analysts noted the data could ease inflation fears and strengthen the case for rate cuts.
The more closely watched consumer price index (CPI) will be released Thursday. Traders now see a high probability of Fed easing next week, according to CME’s FedWatch Tool.
Oracle Stock Surges on AI Growth
In corporate news, Oracle (NYSE:ORCL) soared after unveiling a bullish AI-driven outlook. Its MultiCloud database revenue surged 1,529% in the latest quarter through partnerships with Amazon, Google, and Microsoft.
Oracle now expects its Oracle Cloud Infrastructure (OCI) revenue backlog to exceed half a trillion dollars, signaling strong demand for its lower-cost, AI-powered services.
Other Corporate Movers
- GameStop (NYSE:GME) jumped after reporting Q2 revenue of $972.2 million, up 22% year-over-year.
- Apple (NASDAQ:AAPL) slipped after launching the iPhone 17 lineup, including the new iPhone Air priced at $999. The iPhone 17 Pro starts at $1,099, while the entry model stays at $799.
- Synopsys (NASDAQ:SNPS) dropped after missing revenue expectations.
- Chewy (NYSE:CHWY) fell as its Q2 results disappointed investors.
Oil Prices Rise on Geopolitical Risks
Crude oil prices advanced on rising Middle East tensions and renewed sanctions pressure on Russia.
At 09:35 ET, Brent crude gained 0.8% to $66.94 a barrel, while WTI crude rose 0.8% to $63.15.
The market reacted after Israel targeted Hamas leadership in Doha, heightening risks in the region. At the same time, reports said Trump is urging the European Union to impose steep tariffs on India and China over Russian energy imports.
Poland also confirmed it shot down Russian drones in its airspace during attacks on western Ukraine, describing it as an act of aggression by Moscow.
