The stock market ended Thursday on a positive note, driven by a rally in Oracle shares and favorable economic data. The S&P 500 climbed 0.38% to close at 6,045.26, bringing it less than 2% from its record high. The Nasdaq Composite gained 0.24%, ending at 19,662.48, while the Dow Jones Industrial Average added 101.85 points, or 0.24%, to settle at 42,967.62.
Shares of Oracle surged 13% after the company reported better-than-expected quarterly results and projected significant growth in its cloud infrastructure segment, spurred by increasing demand for AI. Oracle CEO Safra Catz commented that cloud infrastructure revenue is expected to increase by over 70% in the 2026 fiscal year, up from 52% growth in the current quarter. The broader market benefited from new economic data hinting at stability.
The Producer Price Index, which measures final demand prices in the U.S. economy, increased by just 0.1% in May, following a 0.2% decline in April. This was less than the 0.2% increase economists had anticipated, contributing to a decrease in bond yields. President Donald Trump’s statements about potential extensions on tariff deadlines have kept the market gains somewhat restrained.
Trump expressed willingness to extend a July 8 deadline for trade talks but indicated it might not be necessary due to progress with China and other countries. Further trade developments are expected, as U.S. and Chinese officials prepare for additional discussions in London after their latest rounds of talks.
oracle boosts stock market rally
A resolution to trade disputes remains pivotal for markets to achieve new highs, according to investors and analysts. In individual stock movements, Novo Nordisk shares rose over 2% on news of planned late-stage trials for a next-generation obesity drug, amycretin. This dual-action drug mimics gut hormone GLP-1 and the hunger-suppressing hormone amylin.
Investor Nancy Tengler remained bullish on Oracle, citing the company’s robust cloud business and annual dividend growth. She highlighted Oracle’s acquisition of health tech firm Cerner as a significant, underappreciated asset, particularly for its potential in healthcare innovation. Despite positive economic signals and ongoing trade talks, some analysts believe stocks are unlikely to soar to new heights without fresh catalysts.
BCA Research noted that the market remains priced for perfection, limiting the potential for significant rallies even with trade de-escalation. Goldman Sachs has slightly reduced its probability of a U.S. recession in the next year from 35% to 30%, driven by a smaller-than-expected impact of tariffs and stable financial conditions. The investment firm maintains its forecast for one interest rate cut in December 2025 and two more in 2026.
Dan Niles, founder of Niles Investment Management, warned of a possible disappointing holiday season due to slower demand and the lingering effects of tariffs, suggesting companies might face challenges in the latter part of the year. In summary, favorable economic data and notable corporate performances have pushed the major U.S. stock indices higher, but the market’s outlook remains tempered by trade uncertainties and cautious investor sentiment.
