Wall Street Surges on Soft Inflation and Tech Triumphs

Hold onto your hats, folks! U.S. stocks soared on Thursday as investors got a kick out of some seriously soft inflation numbers and amped-up expectations of a Federal Reserve rate cut. And guess what? The tech sector totally stole the show, with their killer earnings drowning out any trade jitters and sector-specific stumbles.

The S&P 500 shot up 0.38%, locking in at 6,045.26, thanks to a wild rally in those big-shot tech stocks. We're talking less than 2% away from its all-time high, people! The Nasdaq Composite wasn't far behind, adding 0.24%, while the Dow Jones Industrial Average strutted up 101.85 points, or 0.24%, to 42,967.62.

But the real rockstar of the day? Oracle! This beast skyrocketed 13% after dropping some mind-blowing quarterly results and forecasting a jaw-dropping over 70% growth in cloud infrastructure revenue next year. And what's driving this? You guessed it - the insatiable appetite for AI!

This powerhouse performance didn't just put a smile on Oracle's face; it pumped up the entire tech sector and sent the market gains into overdrive.

Now, I know what you're thinking - what about Boeing's 4.8% nosedive after one of their 787 Dreamliners bit the dust in India? Sure, it put a bit of a damper on the Dow, but hey, investor sentiment stayed strong. Why? Easing Treasury yields and that softer economic data got everyone dreaming of some sweet Fed policy easing.

Rate Cut Expectations on the Rise

Get ready, because the buzz for a rate cut later this year is getting louder by the minute. Investors are reading between the lines of this weaker inflation and labor data, seeing it as the Fed's golden ticket to ease up without setting off any price pressure fireworks.

The May producer price index barely budged at 0.1%, coming in cooler than expected, while jobless claims hinted at a softening labor market. Throw in some strong demand at a Treasury auction, and you've got yields taking a nosedive, with the 10-year note dipping below 4.4%.

Trade tensions? Still on everyone's radar, with President Trump waving around plans to send tariff warning letters to a bunch of countries. But hey, he's also flashing some progress with China and other key players. Sure, there's some uncertainty hanging around, but investors? They're feeling cautiously optimistic, and that's the vibe we're riding into the weekend!