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Stocks fell in early trading on Tuesday as investors pondered the February Consumer Price Index (CPI) report. But big gains in some mega-cap tech stocks helped the major indexes gain ground.
Prior to the opening, Bureau of Labor Statistics It announced that the composite CPI rose 0.4% from January to February, and rose 3.2% year-on-year. Both numbers were higher than last month, and the annual increase was higher than economists expected.
Core CPI (excluding volatile foods) energy Prices rose 0.4% from the previous month and 3.8% from a year earlier, both slightly higher than economists expected.
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“Inflation continues to ease, but much of the core inflation is still ‘sticky’ and is likely easing at a pace that will give the Fed the confidence it needs to begin an easing cycle well into June,” he said. “I haven’t.” quincy crosbyChief Global Strategist at LPL Financial.
Crosby said today’s data shows “the last mile to 2% has gotten a little longer,” but at the same time there’s enough room for the Fed to start cutting rates by June or July. He added that it gives him hope that it will be possible.
Fed Chair Jerome Powell will likely reiterate the central bank’s “data-dependent” approach. Interest level in Next Fed meeting, one week starts today. Wall Street will be eagerly looking for clues about the Fed’s rate cut plans.
According to CME Group fedwatch tool, futures traders are currently pricing in a 32% chance that the Fed will implement its first quarterly point rate cut in June. 44% expected it to be released in July, up from 40% the day before.
Oracle advances with strong cloud growth
In individual stock news, oracle (ORCL) soared 11.8% after the company reported better-than-expected fiscal third-quarter earnings of $1.41 per share and inline revenue of $13.3 billion. Revenue from the company’s cloud services and license support division, which houses artificial intelligence (AI) servers, increased 12% year over year.
William Blair analyst Sebastian Nagy said: tech stocks We expected the stock to outperform (buy) after earnings, citing solid demand for the company’s cloud products, including Oracle Cloud Infrastructure, and “significant tailwinds” from generative AI, which is still in its infancy.
“In our view, the positive demand narrative and strong booking growth support Oracle’s structural changes, and the company is well-positioned for sustained acceleration of revenue growth.” he says.
Nvidia’s market value increases by $154 billion on Oracle gain
Nvidia (NVDA) also posted notable gains on Tuesday. Magnificent 7 Stock 7.2% jump – $154 billion increase Market capitalization In the middle. The chipmaker appears to have received a boost from Oracle’s earnings report.
Oracle Chief Technology Officer Larry Ellison said during the company’s earnings call that the company signed a major cloud infrastructure deal with Nvidia in the third quarter. “Oracle’s second-generation AI infrastructure business is rapidly growing,” Ellison said. “It’s become clear to everyone.”
Additionally, Oracle CEO Safra Catz hinted that next week there will be a “really great joint announcement with Nvidia.”
Still, given that NVDA stock has fallen 6.1% in two days heading into today’s trading, market participants may have been buying on the edge of one of Wall Street’s most popular stocks. There is.
The main indicators are: Nasdaq Composite The number of cases increased by 1.5% to 16,265. S&P500 5,175 cases, an increase of 1.1% Dow Jones Industrial Average 39,005 cases, an increase of 0.6%.
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