S&P Hits Record High Ahead of CPI | Closing Bell

Market Overview - The S&P 500 is experiencing a record-setting day, trading above 6500, with a slight increase in producer prices contributing to this performance [2][3] - U.S. wholesale inflation declined in August for the first time in four months, with the Producer Price Index decreasing by 0.1% from the previous month [3][16] - The bond market reacted more significantly to these developments than the equity market, with the two-year yield at 3.5% and the ten-year yield at 4.04% [3][4] Company Highlights - Oracle emerged as the biggest gainer on the day, with its stock jumping 36%, marking its best day since December 1992, following a significant contract to purchase $300 billion in computing power over five years [10][19] - Other companies benefiting from Oracle's performance include Broadcom, which rose nearly 10%, and ASML, which increased by 29% [11][10] - Klarna, a buy now, pay later service, had a successful IPO, opening at $52 and closing just below $46 after raising approximately $0.4 billion [9][18] Sector Performance - The technology sector showed strong performance, primarily driven by Oracle, while energy and utilities also had a good day [5][8] - Consumer discretionary and consumer staples sectors were the biggest losers, with consumer discretionary down about 1% [8][12] Notable Decliners - Synopsis saw a significant decline, with shares down more than 35% due to warnings about U.S. export restrictions affecting its largest market, China [12] - Chewy's shares closed down about 16% as the company plans to reinvest profits into growth drivers despite disappointing Wall Street [14] - HP's shares were downgraded to in-line from outperform, resulting in a 1% decline [15] Wealth Impact - Larry Ellison became the world's richest person for the first time, largely due to Oracle's stock performance, which increased his net worth to approximately $390 billion [19][20] - The shift in wealth rankings highlights the volatility and competitive nature of the tech industry, particularly among major players like Elon Musk and Jeff Bezos [22][23] Industry Insights - The recent gains in Oracle's stock reflect a broader trend of capital expenditure in the tech space, indicating potential for further growth in the sector [24] - Despite Oracle's success, application software companies experienced declines, suggesting a mixed outlook for different segments within the tech industry [25]