Oracle's earnings report was a miss in estimates yet delivered an exceptionally strong outlook for its AI-powered cloud business. A key catalyst was the announcement of a $300 billion, five-year partnership with OpenAI, a significant future revenue stream and involvement in mainstream AI innovation. This deal shows Oracle's strategic positioning to gain in the rapidly expanding artificial intelligence market. Likewise, the company's strong performance in cloud services, particularly its Gen2 Cloud Infrastructure, has instilled investor confidence in its demand outlook and involvement in serving AI needs for computing power. Wall Street analysts are now highly optimistic about Oracle's long-term growth, forecasting continued expansion in its AI and cloud offerings.
EQUITY
Oracle's miracle ascent, worth $255 billion in market value on blockbuster AI cloud deals, continued what seems to be an everlasting tech-led rally that had lifted the S&P 500 and Nasdaq even with Apple dragging it down on a mediocre keynote. Soft August producer prices reinforce bets on a cut ahead of Thursday’s CPI report. Global markets echoed the rally, with Asian tech stocks soaring on AI momentum while Europe held steady awaiting the ECB’s decision.
GOLD
Gold managed to limit its losses, still floating above $3,600, with a rate cut seeming imminent after soft producer price data and a recession-level labour market. Investors are monitoring the critical CPI report, aware that high inflation could reduce near-future rate-cut bets and pressure gold prices. Trump’s call for EU tariffs targeting China and India over Ukraine, Middle East hostilities, and Russian drone incursions into Poland raises gold’s safe-haven appeal.
OIL
Oil prices held onto their gains with escalating geopolitical tensions involving Poland shooting down Russian drones and Israel striking targets in U.S.-allied Qatar, setting new precedent in both regions. President Trump’s threat of new tariffs on key Russian oil buyers, if backed by the EU, could further risk higher premiums. While OPEC+’s October output hike was modest and falling Russian refineries offer some support, stockpile build-ups and weak demand indicators continue to weigh on the market’s fundamentals.
CURRENCY
The greenback steadily climbed near 98 as markets braced for August CPI data that could determine whether the Federal Reserve opts for a 25 or 50 basis-point rate cut next week. Meanwhile, the ECB is expected to hold rates steady, with the euro flat around $1.169 under growing tensions in Eastern Europe and limited policy shifts from President Lagarde. Across Asia, the yen weakened as Japanese wholesale inflation ticked higher.
