The S&P 500 soared to a record high close on Tuesday fueled by a surge in Oracle shares and ongoing optimism about potential interest rate cuts. The tech giant’s stock jumped 11.7% to reach a new high following its strong quarterly results and plans for a joint announcement with Nvidia, which saw its shares rise by 7.2%. The semiconductor industry also experienced a boost, breaking a two-day losing streak.
Despite consumer price data showing a 0.4% increase in the Consumer Price Index (CPI) last month, investors remained hopeful for rate cuts in the near future. The probability of a rate cut in June now stands at 70%, according to the CME FedWatch Tool.
The Dow Jones Industrial Average climbed by 235.74 points, the S&P 500 gained 57.3 points, and the Nasdaq Composite added 246.36 points. The positive economic data and the potential for rate cuts have fueled investor optimism, with many now more focused on the extent of the rate cut rather than the timing.
However, not all news was positive, as Boeing shares dropped by 4.3% due to quality issues and production curbs following an incident on an Alaska Airlines 737 MAX 9 jet. U.S. carriers also faced challenges with jet delivery delays from Boeing, leading to stock declines for companies like Southwest Airlines.
Looking ahead, producer price data is expected later this week, providing further insights into the state of the economy. Overall, the market remained upbeat with advancing issues outnumbering decliners on the NYSE and Nasdaq.
Investors are closely monitoring developments in various sectors, from tech to aviation, as they navigate interest rate expectations and economic indicators. The market remains dynamic, reacting to both positive and negative news, highlighting the importance of staying informed and agile in today’s economic landscape.
