AI-linked stocks rallied Wednesday, fueled by investor optimism that artificial intelligence will power earnings growth after Oracle Corp. (NYSE:ORCL) revealed a massive backlog of AI-related orders.
Oracle shares skyrocketed more than 40% – the company’s strongest single-day rally since December 1992 – despite missing Wall Street forecasts on both revenue and earnings last quarter. Investors instead focused on the company's multi-cloud database business, which exploded 1,529% year-over-year thanks to partnerships with Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOGL) and Microsoft Corp. (NYSE:MSFT).
The rally pushed Oracle closer to the rarefied $1 trillion market cap club, making it the ninth most valuable U.S. company, right behind Tesla Inc. CEO Larry Ellison's fortune swelled by more than $100 billion in a single session, lifting his net worth toward $400 billion — less than $40 billion shy of Elon Musk, who remains the world's wealthiest person.
The enthusiasm spilled over into the broader AI sector, with the Global X Artificial Intelligence & Technology ETF (NYSE:AIQ) climbing 1.5%, on track for a sixth consecutive gain and a new record highs.
Major indices also hit milestones, with the S&P 500 gaining 0.4% to a record above 6,545, while the Nasdaq 100 hovered just shy of fresh highs.
On the macro side, inflation data delivered another surprise. The Producer Price Index slipped 0.1% in August, defying expectations for a 0.3% increase. Wholesale inflation slowed sharply on a yearly basis as well, falling from 3.3% to 2.6%.
A 25-basis-point interest rate cut next week is now fully priced in. Treasury yields fell, with the 30-year dipping to 4.70%.
Commodities were higher: crude oil surged 2% above $63 per barrel after Poland said it shot down Russian drones violating its airspace, a move later confirmed by President Donald Trump who commented by saying “Here we go.”
Gold gained 0.5% to $3,645 an ounce, while Bitcoin (CRYPTO: BTC) advanced 2% to $113,800.
Wednesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day % |
| • S&P 500 | 6,541.48 | 0.4% |
| • Nasdaq 100 | 23,902.07 | 0.3% |
| • Russell 2000 | 2,378.65 | -0.1% |
| • Dow Jones | 45,542.01 | -0.4% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) rose 0.4% to $600.34.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) slipped 0.4% to $456.16.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rose 0.2% to $581.75.
- The iShares Russell 2000 ETF (NYSE:IWM) held steady at $236.68.
- The Technology Select Sector SPDR Fund (NYSE:XLK) outperformed, up 2.1%; the Consumer Staples Select Sector SPDR Fund (NYSE:XLP) lagged, down 1.2%.
S&P 500’s Top 5 Gainers
| Name | Chg % |
|---|---|
| Oracle Corporation | 40.07% |
| Broadcom Inc. (NASDAQ:AVGO) | 9.35% |
| Vistra Corp. (NYSE:VST) | 8.75% |
| Constellation Energy Corp. (NASDAQ:CEG) | 7.95% |
| NRG Energy, Inc. (NYSE:NRG) | 5.94% |
S&P 500’s Top 5 Losers
| Name | Chg % |
|---|---|
| Synopsys, Inc. (NASDAQ:SNPS) | -34.54% |
| The Trade Desk, Inc. (NASDAQ:TTD) | -9.48% |
| Cadence Design Systems, Inc. (NASDAQ:CDNS) | -8.13% |
| EPAM Systems, Inc. (NASDAQ:EPAM) | -5.68% |
| Gartner, Inc. (NASDAQ:IT) | -5.55% |
Read now:
Photo: Shutterstock
