Oracle AI Optimism Amid Market Headwinds
US stocks edged higher on Thursday, boosted by optimism around artificial intelligence following a strong forecast from Oracle AI. The positive outlook helped ease concerns over geopolitical tensions and a decline in Boeing shares. Oracle’s stock soared 14% to reach record highs after the company raised its annual revenue growth forecast. The increase was driven by strong demand for its AI-powered cloud services. The upbeat news lifted investor sentiment across the technology sector.
Tech giants Microsoft and Nvidia each rose by over 1%, while Broadcom added nearly 1%. Art Hogan, chief market strategist at B. Riley Wealth, noted that Oracle’s performance signals continued investment in AI infrastructure. “This is another sign of the increasing need for computing power in the AI revolution,” Hogan said.
Boeing Drops After Deadly Plane Crash
Meanwhile, Boeing’s shares fell by nearly 5% following a fatal crash involving an Air India 787-8 Dreamliner. The aircraft went down shortly after take-off from Ahmedabad, killing more than 200 people.
The incident weighed on the aerospace sector and dampened overall market enthusiasm. Tensions in the Middle East added to market caution. US President Donald Trump said American personnel were being relocated due to rising risks in the region. He reaffirmed that Iran would not be allowed to obtain nuclear weapons, ahead of scheduled nuclear talks in Oman this Sunday.
Market Performance and Sector Highlights
The S&P 500 climbed 0.28% to close at 6,038.81 points. The Nasdaq advanced 0.22% to 19,658.98, while the Dow Jones Industrial Average gained 0.14% to 42,926.15.
Seven of the 11 S&P 500 sector indexes ended the day higher. The best-performing sector was information technology, up 0.98%, followed by utilities with a 0.93% gain.
Gold mining stocks also rose as gold prices touched a one-week high. Newmont gained 4%, Harmony Gold rose 3.7%, and AngloGold Ashanti climbed 6.4%.
Economic Data Supports Rate Cut Expectations
Recent economic indicators pointed to a potential softening in the US labour market. Producer price data and jobless claims came in weaker than expected. These results eased inflation concerns and strengthened market hopes for interest rate cuts.
Traders now see a 60% chance of a 25-basis-point cut by September, according to the CME Group’s FedWatch tool. The Federal Reserve is expected to hold rates steady at its meeting next week.
With trade deals anticipated in the coming weeks, investor confidence is growing. The S&P 500 is now within 2% of its record high from February. Reflecting this optimism, Goldman Sachs reduced its US recession risk forecast to 30%, down from 35%, citing greater clarity on trade policy.
Advancers outpaced decliners in the S&P 500 by a ratio of 1.3 to 1. The index recorded 10 new highs and 3 new lows, while the Nasdaq registered 44 new highs and 59 new lows.
with inputs from Reuters
