The stock market ended Thursday on a positive note, with the S&P 500 closing higher, boosted by a rally in tech sector shares and a favorable inflation report. The benchmark index climbed 0.38% to close at 6,045.26, just shy of its all-time high. The Nasdaq Composite gained 0.24%, ending the day at 19,662.48, while the Dow Jones Industrial Average added 101.85 points, or 0.24%, finishing at 42,967.62.
Shares of Oracle surged 13% following a strong earnings report that exceeded expectations and pointed to future growth in cloud infrastructure, driven by increasing demand for AI. Oracle CEO Safra Catz noted that cloud infrastructure revenue is expected to rise by more than 70% in the fiscal year 2026, up from the previous quarter’s 52% growth. The tech sector’s overall rise substantially buoyed the S&P 500, even as shares of some companies faced downturns.
For instance, Dow component Boeing shed nearly 5% after an incident involving an Air India Dreamliner 787. Inflation data provided additional good news. The May Producer Price Index, measuring U.S. final demand prices, rose just 0.1% after a 0.2% decline in April.
This was below the 0.2% increase anticipated by economists. Bond yields eased on the favorable inflation report. However, President Donald Trump’s tariff threats seemed to temper the market’s gains.
Although Trump suggested he might extend a July 8 deadline for trade talks with other countries, investors remained cautious about U.S.-China trade relations. Speaking about the ongoing trade discussions, Trump mentioned potential agreements with multiple countries, including China, Japan, and South Korea.
Tech shares boost S&P 500
U.S. and Chinese officials are set to continue negotiations in London, but any trade deal still requires approval from Trump and Chinese President Xi Jinping. Market strategist Tom Hainlin of U.S. Bank Asset Management Group emphasized the uncertainty surrounding trade negotiations and their potential impact on breaking market records. He noted that while discussions are ongoing, concrete resolutions have yet to materialize.
Further insights were provided by BCA Research, which stated that even a de-escalation in trade tensions might not drive stocks much higher. They highlighted that the market is already pricing in perfection, leaving limited room for upward movement without new catalysts. In other stock news, Novo Nordisk shares rose more than 2% on optimism for its next-generation obesity drug, amycretin.
This boost follows the company’s decision to proceed with late-stage trials for the drug, which is being developed as both a pill and an injection. Shares of Novo Nordisk have gained more than 19% over the past month despite previous underperformance. Investor Nancy Tengler recommended holding onto Oracle shares, citing the company’s strong performance and promising outlook in cloud computing and health technology.
Goldman Sachs decreased the likelihood of a U.S. recession in the next year to 30% from 35%. The adjustment was based on recent inflation data, favorable financial conditions, and reduced trade policy uncertainty. Goldman continues to forecast one interest rate cut in December 2025, followed by two more in 2026.
Dan Niles from Niles Investment Management expressed concerns over a potentially disappointing holiday season, highlighting pulled-forward demand as a possible issue for Q4 results. Overall, the stock market appeared cautiously optimistic, buoyed by positive earnings, low inflation, and hopes for resolving trade tensions, yet tempered by ongoing uncertainties.
