NEW YORK – Wall Street will get more records Wednesday due to the boom of artificial intelligence.
The S&P 500 rose 0.5% and is expected to set its all-time high to its all-time highest for the second consecutive day. As of 9:35 a.m. ET, the Dow Jones industrial average fell 49 points, or 0.1%, while the Nasdaq Comprehensive Comprehensive also set a record the day before, with the Nasdaq Comprehensive Comprehensive having a 0.5% higher NASDAQ Comprehensive Comprehensive Comprehensive on the previous day.
Stocks are largely because Wall Street expects the economy to achieve a delicate balance: a slowdown is enough to convince the Fed to lower interest rates, but not cause a recession, and it’s all while inflation is still under control.
Many things have to do that, and Wednesday’s report showed that U.S. wholesale-level inflation slowed unexpectedly in August. After months of reporting, it was a relief that showed that inflation would be difficult for the Fed’s 2% target to reach its target, and President Donald Trump’s tariffs would only increase the price increase.
A potentially more important report will be released Thursday, which will show how much the price of U.S. households have risen, but Wednesday’s update “essentially the red carpet rolls out next week to cut the Fed’s tax rate cut,” said Chris Larkin, managing director of trade and investment. Electronic Trade From Morgan Stanley.
Traders are already convinced that the Fed will lower annual interest rates for the first time in its next meeting, but they need inflation data during the transition period to make it mild enough to avoid these expectations. This is because lowering interest rates can drive higher inflation while also driving the economy.
“The broader narrative is increasingly based on the expectation that the Fed will lower the tax rate at next week’s meeting,” said Ahmad Assiri, research strategist at Pepperstone.
On Wall Street, tech stocks helped leadership after Oracle said the AI-related demand definition was defined to send out revenue soaring. CEO Safra Catz said Oracle signed a $400 million contract in its latest quarter and expects cloud infrastructure revenue to grow 77% to $18 billion in the current fiscal year. Since then, it expects revenue from the sector to increase to $144 billion in just four years.
“Artificial intelligence has changed everything,” Oracle Chairman Larry Ellison said in a statement.
Oracle stock surged 34.8%, and the best days since 1992 are likely to move forward, even if its latest quarter results far exceed analysts’ expectations.
Taiwan Semiconductor Manufacturing Co., Ltd., which uses chips in AI, sees its stock gaining 3.1% in the U.S. after it said its revenue in August increased by nearly 34% from the previous year.
NVIDIA is a bargaining company whose stock has become a poster kid for AI Boom, up 3.7%. It is one of the most powerful single forces to boost the S&P 500 along with Oracle.
On the failed side of Wall Street is Synopsys, which helps customers design and engineer chips. It fell 31.3% after reporting profits in the latest quarter, which was no analyst expectations. The same is true for the quarter’s profit forecast.
KranaSweden’s “buy now, pay later” financial services provider will trade as a public company for the first time Wednesday after it announced the public offering of its shares for $40 per share, about $4 higher than previously estimated.
In foreign stock markets, Europe mixed the index after rising in most of Asia. South Korea’s Kospi rose 1.7%, while Hong Kong Hanging climbed 1% in two larger moves.
In the bond market, expectations of an impending rate cut in wholesale prices have strengthened expectations in the bond market, with the yield on the treasury falling from 4.08% to 4.05% from late Tuesday late in the second half of the year.
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AP business writers Yuri Kageyama and Matt Ott contributed.
