🚀 Oracle shares rise 40%

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Market Overview
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Year To Date Performances:

1. Oracle shares skyrocketed nearly 40% on Wednesday, its best day since 1992, after reporting cloud demand numbers that stunned Wall Street and put the company within striking distance of a $1 trillion market cap. The company disclosed $455 billion in remaining performance obligations, a 359% year-over-year surge that far exceeded expectations of roughly $180 billion. Analysts called the results “astounding” and “absolutely staggering,” framing the backlog as one of the strongest signals yet of the AI-driven cloud boom. While Oracle narrowly missed quarterly revenue and earnings estimates, the scale of its future cloud commitments overshadowed those shortfalls, with the company projecting cloud revenue to swell from $18 billion in fiscal 2026 to $144 billion by the early 2030s.

2. Wholesale prices unexpectedly slipped 0.1% in August, a surprise decline that gives the Federal Reserve more room to deliver its first rate cut since 2024 at next week’s meeting. The producer price index, which was expected to rise 0.3%, instead reversed course after a sharp July increase, while services prices, a key Fed focus, fell 0.2%, driven by a steep drop in trade services margins. Markets quickly priced in near-certainty of a cut, with futures showing a small chance of a deeper half-point move, as easing inflation pressures and weaker labour data have shifted the Fed’s concerns from overheating to slowing growth. Though tariffs and certain goods like tobacco remain inflationary, economists say broad price pressures are fading, leaving little to stop the Fed from moving toward easier policy.

3. A federal judge has blocked President Donald Trump’s attempt to fire Federal Reserve Governor Lisa Cook, ruling that her removal likely violated the Fed’s “for cause” protections designed to shield governors from political interference. Trump claimed Cook, the first Black woman to serve on the Fed board, had engaged in mortgage fraud before taking office, but Judge Jia Cobb said those allegations—denied by Cook—do not constitute grounds for termination under the law. The injunction ensures Cook will participate in next week’s rate-setting meeting, where the Fed is expected to cut interest rates, and sets the stage for a landmark Supreme Court battle over the president’s power to oust Fed governors. The case underscores the tension between Trump’s push to exert influence over monetary policy and the Fed’s independence, a cornerstone of U.S. financial stability.

   Headlines

   1. Trump is pushing EU leaders to impose 100% tariffs on India and China.

   2. Nova Nordisk, which produces Wegovy, has announced that it will cut 9,000 jobs.