The S&P 500 closed higher. It was lifted by a rally in Oracle shares and a favorable inflation report. This boosted investor confidence and the tech sector.
The benchmark index climbed 0.38%. It closed at 6,045.26, just less than 2% off its record high. The Nasdaq Composite gained 0.24%.
It ended the day at 19,662.48. The Dow Jones Industrial Average added 101.85 points, or 0.24%. It settled at 42,967.62.
Oracle shares surged 13% after the company reported strong earnings. It beat expectations on both the top and bottom lines. CEO Safra Catz stated that this growth was driven by increased demand for AI.
She projected a 70% increase in cloud infrastructure revenue for the fiscal year 2026. This is up from the previous quarter’s 52% growth. Oracle’s performance significantly boosted the S&P 500.
Stocks also benefited from economic data. It indicated a solid economy. The May Producer Price Index rose just 0.1% following a 0.2% decline in April.
This surpassed economists’ expectations of a 0.2% rise.
Oracle shares drive S&P gains
Bond yields eased following this inflation report.
However, concerns over trade policies tempered market gains. President Donald Trump said he may extend the deadline for trade talks. This added some market uncertainty.
Shares of Novo Nordisk popped more than 2%. This followed an announcement that the company would proceed with late-stage trials for a next-generation obesity drug. The experimental drug mimics two hormones that suppress hunger.
It has driven the stock’s recent performance. Investor Nancy Tengler remains bullish on Oracle. She highlighted the company’s annual dividend growth and robust cloud performance.
Tengler also noted Oracle’s acquisition of health tech company Cerner for $28.3 billion. She called it a significant yet underdiscussed catalyst for future growth. U.S.-China trade talks have led to a partial easing of restrictions on rare earth metals and foreign students.
Despite these developments, BCA Research warned that even a de-escalation of trade tensions might not push stocks to new highs. This is due to the already high market valuations. Goldman Sachs lowered the probability of a U.S. recession over the next year to 30% from 35%.
It cited smaller-than-expected economic impacts from higher tariffs and improved financial conditions. The firm maintained its Federal Reserve forecast for an interest rate cut in December 2025. Further reductions are expected in 2026.
In summary, while Thursday brought gains for major indexes, the market remains watchful of trade policies and economic data that could influence future performance.
