Oracle boosts S&P 500 and Nasdaq to record closes

Economic Overview - JP Morgan's Jamie Dimon indicates that the latest jobs data shows a weakening economy, prompting investor focus on an upcoming inflation report [1] - Real GDP growth year-to-date is at 1.3% annualized, with non-farm payroll job creation growing at 0.5% [3] - The Producer Price Index (PPI) suggests that wholesale prices are not surging as much as feared, indicating a benign inflation environment [1][5] Inflation and Federal Reserve Policy - The PPI tends to lead the Consumer Price Index (CPI), suggesting that current inflation pressures may not persist [2] - With CPI and PPI inflation rates around 2.7%, the Federal Reserve may need to shift focus from inflation to supporting economic growth [3][9] - The market is beginning to recognize the need for the Fed to respond to growth rather than inflation [6] Labor Market and Productivity - The job market is showing signs of decline, with real retail sales flat year-to-date [6] - The tech industry, particularly in information processing, has seen employment flat or declining as productivity increases [8] - Oracle's anticipated growth in AI servers may indicate a shift towards more productivity, potentially leading to a weaker job market in the near term [7][9]