The Kaipher Editorial Team 
The US stock market is firing on all cylinders, surging to new all-time highs Wednesday. The rally is being driven by a powerful combination: a stunningly ambitious forecast from tech giant Oracle that electrified investors, and a growing belief that the Federal Reserve is poised to cut interest rates before the month is over.
The star of the show was undoubtedly Oracle, whose shares skyrocketed more than 30% in pre-market trading. The company announced it expects its cloud business to grow from $18 billion this year to an incredible $144 billion by 2030. This isn’t just wishful thinking; Oracle revealed it has already locked in a staggering $455 billion in future business, a 359% leap from last year, fueled by massive deals with just three customers.
This week’s records are building on strong momentum from Tuesday, when all three major US stock indexes—the S&P 500, Nasdaq, and Dow Jones—closed at their highest levels ever. Traders have become increasingly convinced that the Federal Reserve will make borrowing cheaper at its mid-September meeting, a move that typically fuels market growth.
Confidence in a rate cut is now sky-high, with markets pricing in a 95% probability of a reduction. Some traders are even placing bets on a more aggressive half-point cut. This sentiment was supercharged after the Bureau of Labor Statistics revealed the US economy likely added 911,000 fewer jobs than previously thought over the last year, giving the Fed more reason to step in and stimulate the economy.
Diving deeper into Oracle’s plan, CEO Safra Catz laid out a detailed path to its $144 billion goal, with revenue expected to nearly double multiple times over the coming years. The projections were so bold that one Deutsche Bank analyst described them as evidence of “a seismic shift happening in computing,” putting Oracle’s stock on track for its biggest one-day gain since 1999.
So, who are Oracle’s blockbuster clients driving this growth? The list includes some of the biggest names in tech, with a reported deal to provide massive data center capacity for AI leader OpenAI, alongside major agreements with TikTok and Nvidia. These deals alone added nearly $190 billion to Oracle’s market value in extended trading.
Adding another layer of good news, fresh inflation data on Wednesday brought a welcome surprise. Wholesale prices unexpectedly dipped by 0.1% in August, when economists had been bracing for an increase. This suggests that price pressures are easing, strengthening the case for the Fed to cut rates. Now, all eyes are on Thursday’s consumer price report for the final piece of the puzzle.
When you put it all together—signs of moderating inflation combined with clear evidence of explosive, AI-driven demand—you get what many analysts are calling an ideal environment for the market. This optimism is spreading, with major firms like Barclays already raising their year-end targets for the S&P 500, betting that this record-setting run has further to go.
