It was a day of high drama and even higher numbers on Wall Street as investors digested a surprising inflation report and watched Oracle’s stock soar to new heights. On September 10, 2025, the S&P 500 and Nasdaq extended their record runs, each rising 0.4%, while the Dow Jones Industrial Average slipped by 59 points, or 0.1%. The mood was buoyant for tech, but the real fireworks came from Oracle, whose stock jumped an eye-popping 35% after a blockbuster earnings report.
The catalyst for all this market action was a fresh batch of economic data. The Bureau of Labor Statistics released its Producer Price Index (PPI) report for August, and the numbers caught nearly everyone off guard. Instead of the anticipated 0.3% rise, wholesale prices dropped 0.1%, offering the Federal Reserve some much-needed breathing room as it prepares for its highly anticipated rate decision next week. According to Dow Jones Market Data, this benign inflation reading cracked open the door for a larger rate cut by the Fed, a move that markets have been eagerly awaiting.
Stock market futures surged after the PPI report, and Treasury yields slid across the board. The 2-year yield, in particular, fell the most, reflecting growing expectations that the Fed could get more aggressive with rate cuts. "We expect investors will soon refocus on the risk that the Fed needs to go beyond simply returning to neutral and eventually shift into an accommodative stance – this is a risk that is currently underpriced. 2-year yields will continue to stall out at 3.50% until the risk of cutting below neutral becomes a more serious conversation in the market," wrote Ian Lyngen, rate strategist at BMO, as cited by Dow Jones Market Data.
According to the Bureau of Labor Statistics, the core PPI—which excludes volatile food and energy prices—also fell 0.1% in August, defying expectations of a 0.3% increase. Even when excluding food, energy, and trade, the PPI was up just 0.3% for the month and 2.8% year-over-year. Services prices, a key metric for the Fed, dropped 0.2%, mainly due to a 1.7% decline in trade services and a 3.9% drop in machinery and vehicle wholesaling margins. Goods prices ticked up by only 0.1%, with food costs rising 0.1% and energy prices falling 0.4%.
Market watchers were quick to interpret the data as a green light for rate cuts. Chris Rupkey, chief economist at Fwdbonds, summed up the mood: "Net, net, the inflation shock that was not is rocketing markets higher as inflation barely has a heartbeat at the producer level which shows the tariff effect is not boosting across-the-board price pressures yet. There is almost nothing to stop an interest rate cut from coming now."
The Federal Open Market Committee (FOMC) meets next week, and all eyes are on its upcoming decision. Futures market pricing, according to CME Group’s FedWatch, implies a 100% probability that the committee will approve its first rate cut since December 2024. Odds for a larger half-percentage-point reduction ticked up to about 10% after the PPI release. The central bank’s decision will arrive alongside an updated outlook on the economy and interest rates.
The inflation picture, while still above the Fed’s 2% target, is showing signs of easing. Officials have expressed confidence that cooling housing and wage pressures will gradually bring prices down. However, the specter of President Donald Trump’s aggressive tariffs against U.S. imports continues to loom large. While tariffs have not historically caused lasting inflation, the broad scope of Trump’s measures has raised concerns that this time could be different. Tobacco products, for instance, jumped 2.3% in August, reflecting the impact of tariffs. Portfolio management costs, another volatile component, rose 2% after a 5.8% spike the previous month.
Amid these economic crosswinds, Oracle managed to steal the spotlight. The company’s earnings report, released on the evening of September 9, 2025, revealed a massive backlog of orders for its cloud-computing infrastructure—a sign of surging demand in the tech sector. Oracle’s stock price shot up to $331.78, pushing its market value above $900 billion. Any move above $356.02 would put Oracle in the exclusive trillion-dollar club, a milestone based on the share count released in June 2025. According to Bespoke Investment Group, "Less than 0.35% of all earnings reports since 2001 have resulted in a stock rally of more than 31% in reaction to earnings, and in those rare instances, the gains have typically been seen in small and micro-cap stocks." Oracle, by contrast, is a tech giant, making the rally all the more remarkable.
Bank of America wasted no time upgrading its rating on Oracle stock to Buy, calling the company’s backlog "exceptional." The excitement was palpable, with investors and analysts alike marveling at the scale and speed of Oracle’s ascent. As Dow Jones Market Data pointed out, the company is on the cusp of a historic valuation, pending the release of its detailed 10-Q financial statement in the coming days.
While the stock market was basking in Oracle’s glow and the prospect of lower rates, concerns lingered about the broader economy. Just a day earlier, a BLS report revealed that the U.S. economy created nearly 1 million fewer jobs than initially reported in the year leading up to March 2025. This revision has raised fresh worries about the health of the labor market, even as Fed officials have consistently described the employment picture as "solid." The upcoming Fed meeting will not only set the course for interest rates but also provide an updated snapshot of policymakers’ views on the economy’s trajectory.
As the dust settles, investors are left to ponder what comes next. Will the Fed opt for a modest cut, or will it surprise markets with a bolder move? Can Oracle sustain its meteoric rise, or will the weight of expectations catch up? And how will the ongoing tariff battles and labor market jitters shape the economic landscape in the months ahead? For now, Wall Street is riding a wave of optimism, but as always, the next twist could be just around the corner.
With the Federal Reserve’s pivotal meeting looming and Oracle’s stock rewriting the record books, this September is shaping up to be one for the history books—full of surprises, suspense, and plenty of market-moving moments.
