S&P 500 hits a new all-time high! The cooling inflation data and Oracle's stock price big pump are key drivers.

On Wednesday (September 10), the S&P 500 index of the U.S. stock market hit a new all-time high, rising by 0.5%, mainly driven by the unexpected decline in the U.S. Producer Price Index (PPI) for August, which also heightened market expectations for an impending interest rate cut by the Federal Reserve (FED). The Nasdaq Composite Index also rose by 0.5%, reaching a new historical high during the session. In contrast, the Dow Jones Industrial Average fell by 216 points, a decline of 0.5%.

The latest PPI data shows that U.S. wholesale prices unexpectedly fell by 0.1% in August, significantly lower than the market expectation of a 0.3% increase. The core PPI, excluding food and energy, also declined by 0.1%, while the market forecast was for a 0.3% increase.

This report serves as a prelude to the upcoming August Consumer Price Index (CPI) announcement. The market generally expects the CPI to show a month-on-month increase of 0.3%, with the year-on-year rate possibly rising to 2.9%. However, the core CPI year-on-year rate is expected to remain at 3.1%.

Investors bet on a rate cut in September, even expecting "a two-rate cut at once".

The market's expectations for the Federal Reserve (FED) to cut interest rates at the September meeting have clearly intensified. According to the CME FedWatch tool, traders widely believe that the Fed will cut rates by at least 0.25 percentage points, with even more betting that it may boldly cut by 0.5 percentage points.

Renowned economist and Allianz chief advisor Mohamed El-Erian stated on CNBC's program "Squawk Box": "If the Federal Reserve is truly data-driven, then after this data comes out, the question should be 'why not cut by 50 basis points?' Employment data is clearly weaker than expected, and now inflation is also cooling down."

The AI trend is rising again! Oracle's stock price has surged over 40%, leading the market.

Another market focus on Wednesday was the stunning performance of Oracle. The company's stock price surged more than 40% in a single day, becoming the leader of the S&P 500's rise. The main reason for the surge was the company's optimistic financial forecast related to AI, which sparked market interest.

Oracle pointed out in its latest financial report that its multi-cloud database revenue from cloud platforms such as Amazon, Google, and Microsoft surged by 1,529% in the last fiscal quarter, primarily due to the explosive demand for AI servers.

Although the overall financial report did not fully meet market expectations, the company projects that its cloud infrastructure revenue for the fiscal year 2030 is expected to reach $144 billion, a remarkable growth potential compared to $10.3 billion for the fiscal year 2025, which has greatly stimulated market enthusiasm.

AI concept stocks are favored again, with Nvidia and AMD both surging.

In addition to oracle bone script, AI-themed concept stocks have once again become a market hotspot. Both Nvidia and AMD have seen their stock prices rise, indicating that investors' confidence in the AI industry remains strong. As companies invest heavily in AI infrastructure, stocks related to chips and the cloud supply chain have once again become the focus of capital chasing.

This article S&P 500 refreshes historical highs! The cooling inflation data and Oracle's stock price surge have become key drivers. First appeared in Chain News ABMedia.