S&P 500 Climbs to a Record High on Fed Rate Cut Optimism

Market Overview - The S&P 500 Index reached a new record high, while the Nasdaq 100 hit a 4-week high, indicating a positive market sentiment [2] - Stocks are supported by a decline in bond yields following a surprising easing in US producer prices for August, which has strengthened expectations for Federal Reserve interest rate cuts [2][9] Company Highlights - Oracle's stock surged by +42% to a record high after the company provided an aggressive outlook for its cloud business, driven by strong demand for AI infrastructure [3][13] - CoreWeave, Broadcom, Arista Networks, Nvidia, Super Micro Computer, and Advanced Micro Devices also saw significant gains, reflecting a rally in AI computing infrastructure stocks [14] - Travere Therapeutics rose by +27% after receiving positive news regarding its supplemental drug application for a rare kidney disorder [16] - GameStop reported Q2 hardware and accessories net sales of $592.1 million, exceeding expectations, leading to a +5% increase in its stock [16] - Johnson Controls International raised its quarterly cash dividend to 40 cents per share, above market expectations, resulting in a +3% increase in its stock [17] Economic Indicators - US MBA mortgage applications increased by +9.2% in the week ending September 5, with the average 30-year fixed mortgage rate falling to an 11-month low of 6.49% [5] - The final-demand PPI for August eased to +2.6% year-on-year, lower than the previous month's +3.1% and below market expectations [5] - China's August CPI fell by -0.4% year-on-year, marking the steepest decline in six months, while the PPI fell by -2.9% year-on-year, indicating ongoing deflationary pressures [4] Stock Movements - Apple shares fell by more than -2% due to market disappointment over the latest product launches [4][19] - Synopsys experienced a significant drop of more than -34% after forecasting lower-than-expected full-year adjusted EPS [17] - Humana's stock declined by more than -2% following concerns about changes in Medicare quality ratings affecting revenue [17]