Inflation Cools; Stocks Hit Records, Oracle Soars

Softer inflation stoked bigger Fed-cut bets, sending the S&P 500 and Nasdaq to fresh highs as Oracle surged. Focus now turns to today’s U.S. CPI and the ECB decision.

TL;DR:

• 🧊 Inflation cools; cut odds rise
• 📈 S&P 500, Nasdaq set records
• 🤖 Oracle jumps on AI momentum
• 🌏 Asia stocks climb; bonds slip

Inflation Cools; Cut Odds Rise

Cooling inflation data reinforced expectations for a larger near-term Fed cut, easing financial conditions and lifting risk appetite across equities. Traders leaned into duration and growth exposure as rate-cut probabilities advanced, sharpening focus on front-end yields and the dollar path into key prints. The shift in macro tone set the stage for a broad-based rally. Source

S&P 500, Nasdaq Set Records

U.S. equities punched to new all-time highs, led by megacap tech and AI beneficiaries, as softer inflation strengthened the case for policy easing. Breadth improved into the close, while volatility eased with risk premia compressing ahead of today’s catalysts. The move underscored a “bad news is good news” dynamic for growth-heavy benchmarks. Source

Oracle Jumps on AI Momentum

Oracle shares surged as investors rotated toward AI infrastructure and cloud beneficiaries, amplifying the broader tech-led advance. The rally reflected confidence in enterprise AI spending trajectories and margin leverage amid an easier rates backdrop. Momentum in the name helped lift sentiment across software and data platforms. Source Source

Asia Stocks Climb; Bonds Slip

Overnight, Asian equities advanced while core global bonds softened as markets priced the odds of a bigger Fed cut, extending the pro-risk tone from Wall Street. Cyclicals and tech outperformed, with rate-sensitive pockets leading as yields edged higher in Asia. Attention now turns to today’s U.S. CPI and the ECB decision, alongside the kickoff of the MSCI Economic Summit 2025. Source U.S. CPI ECB MSCI Summit