The S&P 500 closed at a fresh record high on Wednesday, lifted by encouraging inflation data and a stunning rally in Oracle shares.

The benchmark index rose 0.4%, as did the Nasdaq Composite, with both reaching new all-time intraday highs. The Dow Jones Industrial Average, however, slipped 260 points (0.6%), weighed down by a decline in Apple stock following a lukewarm reception to its latest iPhone launch.

Inflation Surprise Boosts Fed Cut Hopes
Investor sentiment improved after the producer price index (PPI) showed U.S. wholesale prices unexpectedly fell 0.1% in August. Economists had forecast a 0.3% increase. Core PPI, which excludes food and energy, also declined 0.1% versus expectations of a 0.3% rise.

The weaker-than-expected inflation data adds momentum to expectations that the Federal Reserve will cut interest rates at its September meeting. According to the CME FedWatch Tool, traders now see a strong chance of a half-point cut, with CFRA Research strategist Sam Stovall noting that “the Fed may want to get ahead of the weakening trend.”

The more closely watched consumer price index (CPI) report, due Thursday, is expected to show a 0.3% monthly rise, which could push annual headline inflation to 2.9%, with core inflation steady at 3.1%.

Oracle Stock Skyrockets on AI Cloud Demand
Shares of Oracle surged more than 40%, leading the market higher. The company reported a 1,529% jump in multicloud database revenue, fueled by strong demand for AI servers and partnerships with Amazon, Google, and Microsoft.

The rally pushed Oracle closer to the $1 trillion market cap milestone, while founder Larry Ellison saw his fortune rise by nearly $100 billion, briefly making him the world’s richest person.