Core Viewpoint - The article discusses the recent decline in U.S. stock markets, influenced by geopolitical tensions in the Middle East and significant capital outflows from U.S. equity funds, while highlighting the strong performance of Oracle amid a broader market downturn [6][9][14]. Market Performance - On June 13, major U.S. stock indices closed lower, with the Dow Jones Industrial Average down 769.83 points (1.79%) to 42197.79, the S&P 500 down 68.29 points (1.13%) to 5976.97, and the Nasdaq down 255.65 points (1.3%) to 19406.83 [1]. - For the week, the Dow fell 1.32%, the Nasdaq 0.63%, and the S&P 500 0.39% [1]. Sector Performance - Most large tech stocks declined, with Apple and Meta down over 1%, while Tesla rose nearly 2%. Chip stocks also fell, with Intel and ASML down over 3% [2]. - Energy stocks saw significant gains, with Houston Energy up nearly 120% and U.S. Energy up over 55% [2]. Geopolitical Impact - The escalation of tensions in the Middle East, particularly Israel's airstrikes on Iran, has raised concerns about broader market disruptions [7]. - Investors are closely monitoring the situation, as the market's future direction will largely depend on responses from Iran, the U.S., and other involved parties [8]. Capital Flows - Recent data from Bank of America indicates that U.S. stock fund redemptions reached approximately $9.8 billion, the highest in 11 weeks, while European funds experienced a net outflow of $600 million for the first time in nine weeks [9]. - The article notes that a healthy market requires broad participation across sectors for sustainable growth [9]. Inflation and Federal Reserve Policy - Recent inflation data showed a 2.4% year-over-year increase in May, below expectations, leading to increased bets on potential interest rate cuts by the Federal Reserve [12]. - Former Treasury Secretary Janet Yellen expressed concerns that tariffs could push inflation above 3%, impacting household incomes [13]. Oracle's Performance - Despite the overall market decline, Oracle's stock surged nearly 8% on June 13 and has risen nearly 24% for the week, marking its best weekly performance since the 2001 dot-com bubble [14][16]. - Oracle's strong earnings report and optimistic outlook for cloud computing drove investor interest, with projected revenues exceeding $67 billion for the upcoming fiscal year [16]. - The company is experiencing high demand for AI computing services from major clients, including Meta and OpenAI, and is significantly increasing its capital expenditures to expand its cloud infrastructure [17].