Quick overview

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Wall Street’s main indexes finished Thursday, June 12, in positive territory, reversing earlier losses amid a strong rally in major tech stocks — led by Oracle — and fresh signs of cooling inflation.

The Dow Jones Industrial Average rose 0.24% to 42,967.62, the S&P 500 gained 0.39% to 6,045.94, and the Nasdaq Composite edged up 0.24% to 19,662.49.

Oracle Hits Record High on Strong Guidance

Oracle shares surged 13.5% to an all-time high after the cloud computing giant raised its annual revenue growth target and highlighted robust demand, particularly from clients investing in artificial intelligence.

During a post-earnings call, CEO Safra Catz told investors the company expects to reach at least $67 billion in total revenue for fiscal 2026 — implying 16.7% annual growth, above the prior estimate of 15%.

“This was especially impressive due to the forecast of even greater acceleration and a massive volume of future bookings,” noted Deutsche Bank in a research update. Oracle expects its Remaining Performance Obligations (RPO) to hit $138 billion by year-end, more than doubling its historical backlog built over decades.

Inflation Slows, Trump Pressures the Fed

Also supporting sentiment was a lower-than-expected Producer Price Index (PPI) reading for May. The U.S. PPI rose 0.1% last month, held down by falling service costs, including airfares, following a revised 0.2% drop in April, the Labor Department reported.

Economists had forecast a 0.2% increase after the initial April figure of -0.5%. On a 12-month basis, the PPI rose 2.6%, slightly above April’s 2.5%.

Wednesday’s data had also shown only a modest uptick in consumer prices, curbed by lower gas and airfare costs — though analysts warn inflation could reaccelerate in the second half of the year as tariff-related price pressures filter through.

Markets expect the Federal Reserve to hold its key interest rate steady next Wednesday, in the 4.25%-4.50% range, while anticipating a potential rate cut in September.

However, Donald Trump reignited criticism of Fed Chair Jerome Powell, urging a full percentage point rate cut, claiming it could save the government $600 billion annually in interest payments.

Market Movers: Oracle Shines, Boeing and GE Drop

• Oracle was the standout performer, climbing 13.5% on bullish AI-driven forecasts and booking momentum.
• Boeing dropped 5% after an Air India 787-8 Dreamliner crashed minutes after takeoff in Ahmedabad, India, with 242 people aboard. GE Aerospace, whose GEnx-1B engines power the aircraft, fell 2.5%.
• Amazon shares were flat after initially dipping. The e-commerce giant is challenging its designation as a Very Large Online Platform (VLOP) under the European Union’s Digital Services Act (DSA). In a filing to the EU’s General Court in Luxembourg, Amazon argued it does not pose systemic risks to users and seeks to overturn the stricter regulatory label.