The S&P 500 closed higher on Thursday, lifted by a strong forecast from Oracle that reignited enthusiasm for artificial intelligence (AI) investments. This positive momentum helped offset concerns about rising tensions in the Middle East and a decline in Boeing’s stock.
Oracle shares surged 13.3% to a record high after the cloud computing company raised its annual revenue growth forecast. The company cited robust demand for its AI-related cloud services as the key driver behind the optimistic outlook.
Major tech firms including Microsoft, Nvidia, and Broadcom also gained more than 1%, benefiting from the renewed focus on AI spending. Art Hogan, chief market strategist at B. Riley Wealth, said Oracle’s growth reflects the broader AI investment trend, which also supports companies like Microsoft and Nvidia.
Meanwhile, geopolitical worries weighed on markets. U.S. President Donald Trump announced the withdrawal of some American personnel from the Middle East, calling the region “dangerous” amid ongoing nuclear talks with Iran scheduled in Oman.
The S&P 500 rose 0.38% to close at 6,045.26 points. The Nasdaq increased 0.24% to 19,662.49, and the Dow Jones Industrial Average gained 0.24% to 42,967.62. Trading volume was heavy, with 23.5 billion shares changing hands, well above the recent 20-day average of 18 billion.
Among sectors, eight of the 11 S&P 500 groups advanced. Utilities led with a 1.26% gain, followed by a 1.01% rise in information technology. Gold mining stocks also climbed as gold prices hit a one-week high. Newmont rose 4.9%, Harmony Gold gained 4.1%, and AngloGold Ashanti jumped 6.4%.
Softer producer price inflation and initial jobless claims data eased investor fears about rising costs and suggested a possible cooling in the labor market. This boosted expectations that the Federal Reserve might cut interest rates later this year. Traders now see a 60% chance of a 25-basis-point rate cut by September.
Overall, the S&P 500 remains about 2% below its February record high as investors await progress on trade negotiations and monitor geopolitical risks. Goldman Sachs recently lowered its U.S. recession forecast, citing reduced uncertainty over tariff policies.
Advancing stocks outnumbered declining ones by a 1.5-to-1 ratio on the S&P 500. The index recorded 12 new highs and 3 new lows, while the Nasdaq saw 54 new highs and 63 new lows.
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