Oracle Stock Surges After Big AI Deals Despite Weak Earnings – What Investors Need to Know About the Market Rally

New York, US – Dow Jones futures showed minimal movement in after-hours trading, alongside S&P 500 futures and Nasdaq futures. Oracle surged late following substantial AI deals despite disappointing earnings. On the agenda for Wednesday are the release of the consumer price index in the morning, followed by an announcement from the Federal Reserve meeting later in the day.

The stock market experienced a mixed session, with the Nasdaq and S&P 500 hitting fresh highs while the Dow Jones, small caps, and financial sectors faced losses but managed to recover from their lows.

Apple stock saw a significant boost, reclaiming a $3 trillion market cap after a strong performance driven by AI announcements. Nvidia fell just short of this milestone, while Microsoft maintained its position as the top player, entering a buy zone.

Arista Networks made strides by surpassing a key level, while e-commerce giant PDD Holdings held steady within a buy range after recent robust movements. However, Tesla faced a setback as it fell below a crucial support level ahead of its shareholder meeting.

Following Oracle’s earnings report, the company fell short on revenue but saw a substantial increase in its stock price during after-hours trading, hinting at a potential breakout. Partnerships with Google Cloud and Microsoft-backed OpenAI are set to further enhance Oracle’s presence in the market.

As for the Federal Reserve meeting, awaiting the policy statement at 2 p.m. ET on Wednesday, all eyes are on Fed chief Jerome Powell’s remarks, alongside updates on economic projections and policymakers’ rate outlook in the “dot plot.” The May consumer price index data is scheduled for release at 8:30 a.m. ET, featuring predictions of a marginal increase from the previous month.

The market rally exhibited a blend of ups and downs, with indices closing on a mixed note. Key players like Apple, Microsoft, and Arista Networks showed promise, while Tesla struggled below its 50-day line. Investors are advised to remain cautious amid the uncertainty surrounding upcoming events like the Fed announcement and Powell’s statements.

In summary, the market scenario remains dynamic, with some stocks shining brightly while others face challenges. It is essential for investors to stay informed and vigilant in navigating through the ever-changing landscape of the stock market.