Stock Market Today: Dow Jones Sees a Drop - Wick Watcher stock market today

Quick Market Snapshot

Index	Current Level	Change	% Change
Dow Jones	39,210	-152	-0.38%
S&P 500	5,482	+21	+0.39%
Nasdaq Composite	17,064	+132	+0.78%
10-Year Treasury Yield	3.89%	▼ -0.06	Lower
Oracle (ORCL)	$154.60	▲ +8.5%	Surge on AI guidance

The U.S. stock market delivered a mixed performance today as investors digested the latest inflation data and corporate earnings. While the Dow Jones Industrial Average slipped, the S&P 500 and Nasdaq Composite both notched fresh record highs — fueled by a sharp rally in Oracle (ORCL) after the company issued blowout AI cloud growth guidance.

Inflation Data Eases, Boosting Rate-Cut Hopes

The latest Producer Price Index (PPI) showed a 0.2% monthly decline, its steepest drop in six months, sparking optimism that the Federal Reserve could accelerate rate cuts later this year.

Core PPI (ex-food & energy): Down 0.1%, signaling cooling pipeline inflation
CPI Report Preview: Due Thursday — expected to confirm disinflation trend
Fed Futures Pricing: Traders now see a 78% chance of a September rate cut, up from 61% last week

“Inflation is cooling faster than expected, and that’s giving tech and growth stocks an extra push,” said Lisa Martinez, Chief Market Strategist at EquityPoint Research.

Oracle (ORCL) Stock Explodes on AI Cloud Demand

Oracle stock soared 8.5% after reporting record-breaking cloud revenue growth and raising its fiscal 2025 guidance. The company’s AI-driven demand is reshaping the cloud infrastructure landscape.

Key Highlights from Oracle’s Earnings Report

Total Revenue: $14.2B vs. $13.6B consensus (+12% YoY)
Cloud Infrastructure Revenue: +46% YoY, driven by AI workloads
Remaining Performance Obligations (RPO): $88B, an all-time high
Capex Outlook: Raised to $10B+ to expand global data centers
AI Partnerships: Secured multi-year contracts with Nvidia, Tesla, and OpenAI

Larry Ellison, Oracle’s Chairman, highlighted:

“AI demand is accelerating faster than anything we’ve seen before. Our Gen2 Cloud is becoming the backbone for next-generation AI infrastructure.”

AI Boom Lifts the Broader Tech Sector

Oracle’s results triggered a chain reaction across the AI and semiconductor sectors:

Nvidia (NVDA): +4.1% — benefiting from new Oracle GPU commitments
AMD (AMD): +3.6% — strong AI-driven demand expectations
Broadcom (AVGO): +5.2% — cloud infrastructure spending tailwinds
Microsoft (MSFT): +2.7% — expanding its AI partnership with Oracle

Tech stocks now account for 39% of the S&P 500’s total market cap, highlighting the sector’s dominance in driving index-level gains.

Dow Jones Lagging — Value Stocks Under Pressure

While tech surged, Dow Jones components saw uneven performance:

Boeing (BA): -2.1% on supply-chain concerns
Johnson & Johnson (JNJ): -1.4% after weak drug pipeline data
Goldman Sachs (GS): -1.2% despite strong IPO pipeline forecasts

This divergence underscores a sector rotation — investors are increasingly favoring growth and AI-driven stocks over traditional value plays.

What to Watch Next: Key Market Catalysts

Inflation & Fed Policy

CPI Report — Thursday
Fed Meeting — September 18th
Expect heightened volatility in Treasury yields and tech valuations.

AI-Driven Cloud Wars

Oracle vs. Amazon Web Services vs. Microsoft Azure — competition for AI workloads is intensifying.
Expect further announcements on GPU procurement, hyperscaler contracts, and edge computing expansion.

Earnings Season — Big Tech Focus

Upcoming reports: Adobe (ADBE), Arm Holdings (ARM), Salesforce (CRM)
Analysts expect double-digit EPS growth fueled by AI adoption.

Investor Takeaways & Strategy

For Growth Investors

Focus on AI infrastructure leaders: Oracle, Nvidia, Broadcom
Look for cloud computing ETFs (e.g., CLOU, SKYY) for diversified exposure

For Income Investors

Monitor defensive sectors (utilities, consumer staples) amid inflation uncertainty
Treasury yields cooling may support high-dividend stocks

For Short-Term Traders

Watch Oracle’s breakout levels at $160 resistance and $148 support
Expect volatility around upcoming CPI data and Fed commentary

Conclusion

The U.S. stock market continues to pivot toward AI-driven growth as Oracle’s explosive cloud guidance reshapes investor sentiment. While the Dow struggles, the S&P 500 and Nasdaq thrive, powered by AI, cloud, and semiconductor momentum.

With cooling inflation, potential Fed rate cuts, and accelerating AI adoption, the next few weeks could define the trajectory of U.S. equities for the remainder of 2025.