US stocks eyed fresh all-time highs on Wednesday as Oracle’s (ORCL) blowout revenue forecast lifted AI hopes, while Wall Street waited for a wholesale inflation reading seen as unlikely to reset rate-cut bets.
Futures on the S&P 500 (ES=F) climbed 0.3%, while those on the Nasdaq 100 (NQ=F) edged up 0.2%, on the heels of record closing highs. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, slipped 0.2%.
Oracle stunned Wall Street as its CEO said its cloud revenue will skyrocket thanks to a big jump in bookings from the “who’s who of AI”. Its shares jumped 30% in premarket trading despite a quarterly earnings miss amid optimism that the AI infrastructure build-out — seen as fueling stock gains — is finally picking up pace.
The countdown is on for a pulse check on inflation, the August producer price index (PPI) reading due later. The data sets the stage for the consumer price index (CPI) release on Thursday, the last clue to price pressures before the Federal Reserve’s policy meeting next week.
The two reports will provide insight into whether rising prices present a significant stumbling block to deep or sustained interest-rate cuts — and if “stagflation” poses a real threat to the economy.
That said, Wall Street traders aren’t preparing for a big reaction from stocks as markets focus on labor market data to gauge the Fed’s next move. A revision to US job numbers on Tuesday confirmed weakness in the market, cementing conviction a September rate cut is coming and stoking a rally in stocks. That said, a CPI surprise could reset bets on rate cuts in October and December, options data suggests.
Meanwhile, in corporate earnings, GameStop (GME) shares jumped after the company reported an over 20% rise in quarterly revenue. Macy’s (M), Campbell’s (CPB), Dollar Tree (DLTR) are set to post their results later Wednesday.
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Premarket trending tickers: Nvidia, GameStop and Synopsys
Here’s a look at some of the top stocks trending in premarket trading:
Nvidia (NVDA) stock rose 2% before the bell on Wednesday, as investor hopes grew around AI-fueled reports from TSMC (TSM) and Oracle (ORCL).
GameStop (GME) stock rose 10% before the bell on Wednesday after reporting a nearly 22% rise in second-quarter revenue on Tuesday.
Synopsys (SNPS) missed Wall Street estimates for third-quarter revenue on Tuesday, hurt by weakness in its Design IP business, sending shares down 20% in premarket trading on Wednesday.
Trump urges EU to join US in new 100% tariffs on China, India to squeeze Russia
President Trump has urged the EU to impose 100% tariffs on India and China to raise pressure on Russia over the war in Ukraine, the Financial Times reported.
Trump made the appeal in a call with US and EU officials in Washington on Tuesday. A US official said Washington would match any tariffs the EU imposed, adding:
“We’re ready to go, ready to go right now, but we’re only going to do this if our European partners step up with us,” one US official said.
This contradicts Trump’s Truth Social post, where he said negotiations with India were “continuing” and will reach a “successful conclusion.”
Bloomberg reports:
Read more here.
Barclays lifts S&P 500 target for second time in three months
Barclays has raised its year-end target for the S&P 500 (^GSPC) to 6,450 from 6,050, citing stronger-than-expected corporate earnings, resilient US economic growth, and optimism around artificial intelligence.
Reuters reports:
Read more here.
Oracle stock jumps after blowout revenue forecast, despite earnings miss
Shares of Oracle (ORCL) surged almost 30% in premarket trading after it boosted its forecast for AI-fueled cloud revenue, citing a jump in its contract backlog.
The software giant now expects its Cloud Infrastructure sales to reach $144 billion by 2030 — a massive leap from its estimate of $18 billion for the current year.
“We’re all kind of in shock in a very, very good way,” Brad Zelnick, an analyst at Deutsche Bank, said during Oracle’s earnings conference call, per Bloomberg. “There’s no better evidence of a seismic shift happening in computing than these results that you just put up.”
Yahoo Finance’s Laura Bratton reports:
Read more here.
Robinhood announces plans for copy trading platform
Reuters reports:
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