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.
What you need to know today
Oracle shares rocket 36%. Fueled by projections of explosive growth, the cloud provider on Wednesday added $244 billion to its market cap in its best day of trading since 1992. Chairman Larry Ellison is now $100 billion richer.
Klarna shares pop after initial public offering. The Swedish fintech firm priced its shares at $40 on Tuesday — they closed at $45.82 on Wednesday. That's a 15% increase in their first day of trading on the New York Stock Exchange.
Wholesale prices in the U.S. unexpectedly fell in August. The producer price index declined 0.1% for the month — much lower than the Dow Jones estimate of a 0.3% increase. Headline PPI rose 2.6% on an annual basis.
More closing highs for U.S. stocks. The S&P 500 and the Nasdaq Composite rose Wednesday, with both indexes closing at new records. But the Dow Jones Industrial Average declined as Apple shares fell. The Stoxx Europe 600 traded flat.
[PRO] Novo Nordisk's job cuts are ultimately 'positive,' analyst says. On Wednesday, the Danish pharmaceutical giant announced plans to trim 9,000 jobs. But analysts still want to see more clarity around its growth strategy.
And finally...
Emergence of an 'anti-Western alliance' raises questions about a new axis of power
The potential threat arising from an "anti-Western alliance" is reaching unsettling levels, according to a top security expert — with analysts warning that Washington and its allies should not underestimate the significance of warming relations between China, North Korea, India and Russia.
Last week, Chinese President Xi Jinping hosted more than two dozen foreign leaders at a military parade in Beijing. Among them was North Korea's Kim Jong Un and Russian leader Vladimir Putin. Xi was also pictured laughing with Putin and Indian Prime Minister Narendra Modi in China.
— Chloe Taylor
