Overview
The release of lower-than-expected PPI figures has eased concerns about inflation pressure that might hinder the Federal Reserve's efforts to curb inflation through employment measures. The market rapidly responded, with projections of three rate cuts in 2025 already being factored into prices. The explosive demand for cloud services led to Oracle's stock soaring by 36%, the highest since 1992, with the rally extending to AI-related stocks such as NVIDIA, Broadcom, and AMD.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
A Major News Story
The PPI saw a 0.1% decline, contrary to forecasts, reducing fears of inflation. Oracle's stock surged due to heightened cloud demand, marking a significant increase since 1992. This enthusiasm spread across AI-related stocks, with major semiconductor companies experiencing a rise in stock prices.
Tomorrow's Economic Indicators
| Time | Event |
|---|---|
| 20:15 | European Interest Rate Decision |
| 20:30 | U.S. August CPI Inflation Rate |
| 20:30 | U.S. Weekly Jobless Claims |
| 23:30 | U.S. Natural Gas Inventory |
| 02:00 | U.S. 30-Year Treasury Bond Auction |
| 04:00 | U.S. August Federal Budget Balance |
A General Opinion
The decline in PPI has eased market concerns about the Federal Reserve's rate hikes, as AI stocks saw substantial increases. Tomorrow's CPI release will be crucial in determining future rate decisions, drawing significant investor attention.
