Wall Street Soars as Tech Stocks Get Boost from Oracle and Nvidia
In a day of solid gains, Wall Street ended on a high note on Tuesday as the latest data on consumer inflation did little to change market expectations for interest rate cuts. Technology and artificial intelligence related stocks saw a significant boost, with Oracle (ORCL) and Nvidia (NVDA) leading the charge.
The tech-heavy Nasdaq Composite and the benchmark S&P 500 both surged over 1%, with the Nasdaq gaining 1.54% and the S&P 500 reaching a record closing high. The Dow also climbed, closing up 0.61%.
Of the 11 S&P sectors, seven ended in the green, with Technology, Communication Services, and Consumer Discretionary leading the way.
Before the opening bell, the U.S. Bureau of Labor Statistics released data showing a 0.4% increase in the consumer price index (CPI) for February, slightly higher than expected. Despite the uptick in inflation, investors remained confident in the Federal Reserve’s cautious approach to interest rate cuts.
Market expectations for a rate cut in June remained unchanged, with Treasury yields rising after the CPI report. The higher-than-expected inflation data led to a drop in bond and gold prices, with most market participants anticipating rate cuts in 2024 or even 2025.
In the midst of the market rally, Oracle and Nvidia stood out as top performers. Oracle’s quarterly results impressed Wall Street, leading to a nearly 12% surge in its stock price. The company also secured several major cloud contracts driven by demand for artificial intelligence, boosting AI-related stocks like Nvidia.
On the flip side, Southwest Airlines saw a significant drop in its stock price, tumbling about 15% after revising its financial guidance due to lower aircraft deliveries from Boeing.
Overall, Wall Street’s positive performance was driven by a combination of strong tech stocks and a steady outlook on interest rates, providing investors with a sense of stability in an otherwise volatile market.
