Key points:

  • The S&P 500 and Nasdaq closed at record highs for the second day in a row.
  • Apple shares rose 7.3% as investors await the Federal Reserve’s decision on interest rates.
  • Oracle forecasts double-digit revenue growth in fiscal 2025.

On Tuesday, the S&P 500 and Nasdaq indices closed at record highs for the second day in a row. This growth was helped by a jump in Apple shares of more than 7%. Investors were also eagerly awaiting the release of consumer price data and monetary policy statements from the Federal Reserve.

Apple shares rose 7.3% to a record closing level and led gains for the S&P 500 and Nasdaq, reversing the previous day’s decline.

The Dow Jones Industrial Average fell 120.62 points, or 0.31%, to 38,747.42. The S&P 500 rose 14.53 points, or 0.27%, to 5,375.32. The Nasdaq Composite added 151.02 points, or 0.88%, to 17,343.55.

While the technology sector is growing, traders are waiting for the Fed’s decision

On Tuesday, the S&P 500 and Nasdaq indices closed at record highs for the second day in a row. This growth was helped by a jump in Apple shares of more than 7%. Investors were also eagerly awaiting the release of consumer price data and monetary policy statements from the Federal Reserve.

Apple shares rose 7.3% to a record closing level and led gains for the S&P 500 and Nasdaq, reversing the previous day’s decline.

The consumer price index report will be released on Wednesday before trading begins, and later in the day there will be a press conference at which the US central bank (Fed) will announce its monetary policy.

The Fed is expected to keep interest rates at current levels but will provide updated economic forecasts and a “scatter plot” illustrating Fed members’ expectations for future interest rates in the current and subsequent years.

Strong US labor market data released on Friday somewhat dampened expectations for the Fed’s first rate cut in September. According to the FedWatch CME tool, the likelihood of such a scenario is now estimated at about 50%.

General Motors shares rose 1.35% after the company announced a $6 billion share buyback program. At the same time, the automaker adjusted its full-year electric vehicle production forecast downward.

Oracle’s surge

Oracle provided guidance for fiscal 2025, predicting double-digit revenue growth, beating analysts’ expectations. This optimistic statement indicates strong demand for Oracle’s AI-powered cloud services. As a result, the company’s shares rose 9% after the report was published.

Oracle also announced several new partnerships: with OpenAI, ChatGPT developer, Google Cloud and other companies. These partnerships are aimed at expanding Oracle’s cloud infrastructure capabilities for customers. In the fourth quarter, Oracle signed more than 30 major AI sales contracts totaling more than $12.5 billion.

The company’s overall fourth-quarter revenue rose 3% to $14.29 billion, but fell short of LSEG’s forecast of $14.55 billion. Oracle reported revenue growth of 6% in fiscal 2024, and analysts forecast 9% growth in fiscal 2025 year. The company expects first-quarter revenue growth of 5-7%, with analysts estimating growth of 7.6%. Adjusted earnings per share were $1.63, slightly below estimates of $1.65.