Quiver Markets Wrap

Quiver Quantitative – The S&P 500 soared to a record high on Tuesday, buoyed by a surge in Oracle’s (NYSE:) shares and fading concerns about immediate interest rate hikes. Despite the Consumer Price Index (CPI) rising 0.4% in February, signaling persistent inflation, investors seemed optimistic about future rate cuts, propelling U.S. stocks to end sharply higher. Oracle, the software giant, jumped 11.7% after reporting strong quarterly results and teasing a forthcoming joint announcement with Nvidia (NASDAQ:), a leader in AI chips. Nvidia shares also rose by 7.2%, contributing to the broader semiconductor index’s (SOXX)2.1% gain, snapping its recent losing streak.

Investors’ confidence stemmed from the belief that the Federal Reserve’s rate cuts are a matter of “how much” rather than “when.” Oliver Pursche of Wealthspire Advisors highlighted this sentiment, suggesting that the market anticipates a less restrictive environment in the near future. The CME FedWatch Tool indicated a 70% chance of a rate cut starting in June, only slightly altered by the latest inflation report. This optimism was mirrored in the day’s trading, with the (DIA) and (QQQ) recording gains alongside the S&P 500 (SPY).

On the flip side, Boeing (NYSE:) faced a 4.3% decline in its shares. The aerospace manufacturer announced intensified compliance checks and additional audits in its 737 factories following quality concerns and a recent incident involving an Alaska Airlines (ALK) 737 MAX 9 jet. The issue also cast doubt on U.S. carriers’ capacity expansion plans, contributing to a 14.9% drop in Southwest Airlines’ (NYSE:) shares. Despite these challenges in the aviation sector, the broader market sentiment remained positive.

The Wall Street session closed with advancing issues outnumbering decliners, reflecting a bullish outlook among investors. With producer price data expected later in the week, the market’s focus will likely shift to further economic indicators. However, the day’s trading underscored a prevailing trend: investor resilience in the face of economic uncertainty, driven by confidence in future Federal Reserve policy adjustments.

This article was originally published on Quiver Quantitative