STORY: U.S. stocks ended mixed on Wednesday, as the Dow dropped almost half a percent, the S&P 500 gained three tenths of a percent to notch its second straight closing high, and the Nasdaq ticked up just enough to record its third consecutive record high close.
Oracle was the talk of Wall Street on Wednesday, with shares skyrocketing 36% to notch their biggest one-day percentage gain since 1992, putting Oracle's market value close to the one-trillion-dollar mark.
The eye-popping stock surge came after the cloud service provider touted several multi-billion dollar contracts with top AI firms, explains Keith Buchanan, senior portfolio manager and partner at GLOBALT Investments.
“That's what really changes the story in the dynamics for Oracle, and it warrants a big shift in how the market views the equity prices for this company. That again, the story has not just evolved, it's been more of a revolutionary change in Oracle's story as far as a cash flow and earnings standpoint going forward.”
AI-related chip stocks also rallied, with Nvidia up nearly 4% and Broadcom jumping almost 10%.
Data center power suppliers also benefited, with Constellation Energy, Vistra and GE Vernova all rising more than 6%.
Apple, viewed by many investors as lagging in the race to dominate AI, declined more than 3%, sliding for a fourth straight session.
Other notable stock moves included Synopsys, which tumbled nearly 36% in its biggest one-day decline on record after the chip design software provider missed Wall Street estimates for quarterly revenue.
Investors will now focus on consumer prices data due on Thursday, for insights on where U.S. inflation is headed.
