Oracle’s jaw-dropping growth projection defies predictions

Following its stunning growth projection, shares of database software maker Oracle surged 36% Wednesday, increasing its market capitalization by $244 billion. Larry Ellison, the company’s chair, who has held more than 1.1 million Oracle shares for over 25 years, saw his net worth jump over $100 billion. In one day.

Unfortunately for analysts who have been covering the stock, association with Oracle didn’t seem to grant them the gift of foresight — they themselves were “blown away” and “in shock” by the numbers.

Another technology stock experienced a pleasant bump the same day. Shares of Klarna, a fintech firm most famous for its “buy now, pay later” services, jumped 15% in its public trading debut. If only Klarna had offered BNPL for stock purchases — investors might have snapped up more shares.

Those strong movements boosted major U.S. stock indexes. The S&P 500 and Nasdaq Composite managed to secure their third consecutive winning day and new record highs. With the U.S. producer price index actually dipping in August — giving the Federal Reserve more room to cut interest rates — the scene seems to be set for more positive momentum in the market for now.

Stock benchmarks are scaling record highs: ‘Animal spirits are soaring’

Equities in several parts of the world have been rallying as easing inflation pressures, resilient corporate earnings and expectations for U.S. rate cuts boost investor sentiment. The MSCI All Country World Index, has hit fresh record highs for four straight sessions, while the S&P 500 closed at a record for a second day on Wednesday,

The rally underscores how sentiment has flipped from earlier this year when fears of sticky inflation, geopolitical risks and U.S. tariffs threatened to derail growth, experts said. 

— Lee Ying Shan