Wall Street Soars on Tech Boost from Oracle and Nvidia
In a day of solid gains, Wall Street ended higher 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 received a significant boost from Oracle (ORCL) and Nvidia (NVDA).
The tech-heavy Nasdaq Composite and the benchmark S&P 500 both advanced more than 1%, with the Nasdaq gaining 1.54% and the S&P 500 adding 1.12% to reach a record closing high. The blue-chip Dow also climbed 0.61% to close at over 39,000 points.
Of the 11 S&P sectors, seven ended in the green, led by heavyweight growth names in Technology, Communication Services, and Consumer Discretionary.
Before the opening bell, data from the U.S. Bureau of Labor Statistics showed that the consumer price index (CPI) in February rose 0.4% month-over-month, slightly higher than expected. Core CPI, which excludes food and energy, also came in at +0.4% M/M, in line with expectations.
Despite the slightly hotter-than-expected CPI report, U.S. stock index futures stabilized in the green, with investors interpreting the data as unlikely to alter the Federal Reserve’s cautious stance on interest rate cuts.
Treasury yields rose after the CPI report, with the longer-end 30-year yield up 4 basis points and the 10-year yield up 5 basis points. The shorter-end 2-year yield was up 6 basis points.
Oracle surged nearly 12% after impressing Wall Street with its quarterly results, while Nvidia also saw gains ahead of its annual GTC AI conference. However, Southwest Airlines tumbled about 15% after revising its guidance due to lower aircraft deliveries.
Overall, the market remains optimistic about the future, with expectations for the first rate cut to come in June remaining unchanged. Investors will continue to monitor inflation data and Fed actions closely in the coming months.
