On the 12th (local time), the S&P 500 index closed at 6045.26, up 23.00 points (0.38%) from the previous day. The tech-heavy Nasdaq composite index recorded a rise of 47.22 points (0.24%) to settle at 19,662.48. The Dow Jones Industrial Average closed at 42,967.62, up 101.85 points (0.24%).
Amid a uniform rise in the three major indexes, Oracle, the world's second-largest software corporation, led the surge in tech stocks with a good performance report.
The producer price index (PPI) for May, which came in lower than expected, raised expectations for interest rate cuts and boosted investor sentiment.
The S&P 500 index closed at its highest level since February 20, approaching just a 2% difference from its all-time high.
The producer price index (PPI) reported by the U.S. Department of Labor for May rose 0.1% from the previous month, falling short of the expectation of 0.2%. The core PPI, excluding volatile food and energy prices, also rose 0.1%, below expectations.
Chris Zaccarelli of Northlight Asset Management noted, "Inflation indicators have come in lower than expected for two consecutive days, which gives the Federal Reserve room to maintain a cautious stance."
Oracle was the main player driving the market's rise that day. The company reported that in its fourth-quarter earnings, it exceeded market expectations with earnings per share of $1.70 and revenue of $15.9 billion.
Safra Catz, Oracle's chief executive officer, stated during a conference call, "Due to the increased demand for artificial intelligence (AI), we expect cloud infrastructure revenue to grow by over 70% in the 2026 fiscal year."
Oracle surged 13%, setting a new all-time high, with a market capitalization surpassing $500 billion. This had a ripple effect, boosting the entire tech sector, including Microsoft and IBM.
In contrast, Boeing dropped about 5% due to the impact of the Air India Dreamliner 787 crash. Aviation experts cautioned against hasty judgments, stating that the cause of the accident is still unclear.
Novo Nordisk, a pharmaceutical company known for Wegovy, rose 2.8% after announcing it would conduct late-stage clinical trials for its next-generation obesity treatment, Amicretin.
The dollar index, which indicates the value of the U.S. dollar, recorded its lowest level in three years at 97.60 after President Trump threatened to impose tariffs on countries that do not participate in trade negotiations. In contrast, gold futures for August reached their highest price since June 5.
Goldman Sachs revised its estimates for a U.S. recession down from 35% to 30%, based on the analysis that the economic impact of the tariffs would be less severe than expected.
Investors are focusing on the upcoming consumer price index (CPI) release and the Federal Reserve's monetary policy direction. If low inflation indicators persist, expectations for interest rate cuts are likely to grow further.