Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.1%), and DJIA (+0.1%) are oscillating around their flat lines, having settled back into familiar ranges after briefly reaching session highs during the opening moments of Fed Chair Kevin Warsh's press conference. Stocks initially rallied as Chair Warsh suggested that incoming economic data would help clarify the appropriate path for monetary policy, although his reaffirmation of the Fed's commitment to its 2.0% inflation target subsequently tempered some of that enthusiasm.

Adding to the enthusiasm surrounding AI infrastructure stocks, Oracle (ORCL 145.59, +15.06, +11.54%) is moving sharply higher following an upbeat long-term outlook presented at its Investor Day, helping lift the information technology sector (+0.4%) to session highs before trimming its gain. Oracle reaffirmed its FY27 earnings and revenue guidance while projecting annual revenue growth of more than 35% through FY30, when it expects revenue to reach at least $225 billion. The company also outlined plans to reduce capital expenditures beginning in FY29, when it expects to generate at least $30 billion in positive free cash flow. Importantly, Oracle indicated that it expects to limit additional capital markets funding to $20 billion through FY30, helping ease concerns surrounding the financing requirements of its substantial AI infrastructure investments.

The encouraging outlook is providing an additional lift to other AI infrastructure names, with neocloud operators Nebius Group N.V. (NBIS 178.93, +8.46, +4.96%) and CoreWeave (CRWV 62.59, +3.02, +5.07%) also moving sharply higher.