Nasdaq and S&P 500 Hit Record Highs Amid Oracle Surge and Cooling Inflation Signals
NEW YORK – June 19, 2024 - Both the Nasdaq and S&P 500 reached new all-time highs today, fueled by a notable rally in tech stocks, notably Oracle, and growing market confidence that the Federal Reserve will begin cutting interest rates next week. Analysts now predict with near certainty a rate reduction of at least 25 basis points in the coming Federal Open Market Committee meeting, with increasing speculation of a possibly larger 50 basis point cut.
The surge in optimism comes as economic data continues to point towards moderating inflation in the US.
Oracle Leads Tech Gains
Oracle shares jumped 36.1% following a strong quarterly report highlighting substantial growth in its cloud business. Revenue from multicloud databases, bolstered by partnerships with Amazon, Google, and Microsoft, increased by an impressive 1529% in the quarter. The company anticipates its oracle Cloud Infrastructure registered tickets to exceed $500 million, signaling robust demand for its offerings, which analysts cite as being both cost-effective and AI-driven.
This positive outlook for Oracle spurred investment in other AI-related hardware companies. NVIDIA Corporation rose 3.8%,Broadcom Inc. gained 9.7%,CoreWeave Inc. climbed 16.8%, and Dell Technologies Inc.increased 2.6%.Mixed Performance Across Sectors
The market saw a mixed performance across other sectors. GameStop experienced a 3.3% increase after reporting a 22% rise in revenues, reaching $972.2 million compared to the same period last year.
Conversely, Apple Inc. fell 3.2% following the unveiling of its new product lineup, including the iPhone 17, updated Apple Watch models, and AirPods, featuring the new “iPhone Air” model. The iPhone 17 will start at $1,099, $100 more than the previous pro model, while the iPhone Air will replace the iPhone 16 plus at $999. The base iPhone 17 model will remain priced at $799.Notable Declines
Synopsys Inc. saw a significant drop of 35.8% after failing to meet third-quarter revenue estimates. chewy experienced a drastic decline of 16% following a second-quarter earnings report that fell short of analyst expectations.
Soleno Therapeutics initially plummeted 28% before recovering to a 14.5% loss after reports surfaced regarding the death of a 17-year-old patient participating in a trial of its Vykat XR medication. The company clarified that the patient had multiple pre-existing conditions and the attending physician believes the death was unrelated to the treatment, a conclusion supported by Soleno’s internal evaluation. The FDA recently approved Vykat XR for treating excessive hunger associated with Prader-Willi syndrome, a rare genetic disorder.
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