The stock market ended Thursday higher, with a notable rally in Oracle boosting the big tech sector. The S&P 500 climbed 0.38% to close at 6,045.26, bringing the benchmark index less than 2% off its record high. The Nasdaq Composite gained 0.24%, ending the day 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 strong earnings that surpassed expectations, along with significant projected growth in its cloud infrastructure sector. Oracle’s CEO Safra Catz noted that thanks to AI demand, cloud infrastructure revenue is expected to increase by more than 70% in the 2026 fiscal year, up from 52% growth this quarter. This uptick boosted the tech sector and the S&P 500 overall.
On a less positive note, Boeing saw a nearly 5% decline after issues relating to an Air India Dreamliner 787 flight. Stocks also rose due to another set of data indicating a solid economy. The May Producer Price Index (PPI), a measure of final demand prices in the U.S., rose just 0.1% for the month after a 0.2% decrease in April, better than economists’ predictions.
However, President Donald Trump’s tariff threats kept market gains in check. Ongoing trade talks between the U.S. and China have been a focal point, with Trump stating that a July 8 deadline for trade negotiations might be extended. U.S. and Chinese officials had discussions in London but haven’t yet finalized a deal.
Oracle boosts tech sector rally
Tom Hainlin, senior investment strategist at U.S. Bank Asset Management Group, noted the uncertainty surrounding trade negotiations. A definitive trade resolution is needed for markets to achieve all-time highs.
Novo Nordisk shares increased by more than 2% on hopes for its next-generation obesity drug, amycretin. The experimental drug, which is in late-stage trials, mimics both the gut hormone GLP-1 and amylin, a hunger-suppressing pancreatic hormone. Investor Nancy Tengler remains bullish on Oracle, suggesting that holding shares could be beneficial given Oracle’s dividend growth and strategic focus on cloud computing.
Tengler highlighted Oracle’s significant orders and strong demand, enhanced by its acquisition of health tech company Cerner for $28.3 billion. Even with a resolution to U.S.-China trade tariffs, BCA Research suggests that the markets are already priced for perfection, with little upside. They emphasize that the muted market reaction to trade developments indicates that further gains will be challenging without additional positive catalysts.
Goldman Sachs has reduced the likelihood of a U.S. recession in the next 12 months from 35% to 30%, citing recent inflation reports and a de-escalation in trade tensions. They forecast a one-time interest rate cut by the Federal Reserve in December 2025, with two more in 2026. Dan Niles, founder of Niles Investment Management, forecasts potential market challenges later in the year due to slower demand amid ongoing tariffs.
He highlighted substantial increases in imports as an indicator of pulled forward demand, which may impact future earnings.
