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Wall Street’s S&P 500 hit a record high on Thursday, with gains in consumer-focused and financial companies offsetting heavy selling in Oracle and declines in other technology companies.
The blue-chip S&P 500 rose 0.2 percent, paring earlier losses, while the tech-heavy Nasdaq Composite slipped 0.3 percent.
Financials, consumer discretionary, industrials and materials groups all recorded significant gains on Thursday as traders moved away from tech. Cruise companies Royal Caribbean, Carnival and Norwegian Cruise Lines were among the biggest gainers, with gold miner Newmont and retailers Dollar General and Dollar Tree also rising.
US stocks rose on Wednesday after the Federal Reserve cut interest rates to a three-year low, as Wall Street had widely anticipated.
“The tone of the press conference was less hawkish than anticipated,” said Mohit Kumar, chief European economist at Jefferies, pointing to Fed Chair Jay Powell’s focus on labor market weakness. “The door is open for further relaxations,” Kumar said.
However, a more than 10 percent decline in Oracle shares on Thursday dampened enthusiasm on Wall Street.
In earnings published after the market closed on Wednesday, Oracle’s $16.2 billion third-quarter revenue fell short of analysts’ estimates and missed capital spending, leading to a stock market surge driven by the Fed’s decision earlier in the day.
Shares of the database company fell by up to 16 percent on Thursday. Other tech stocks also declined, including Nvidia, Intel and Alphabet.
“Although investors were reassured by the Fed’s latest rate cut, familiar concerns about AI are still top of mind,” Jim Reed, global head of macro research at Deutsche Bank, wrote, calling Oracle’s results “disappointing.”
Neil Birrell, chief investment officer at Premier Mitton, said the sharp decline in Oracle’s share price reflected a “broad sensitivity to expectations” for big US tech companies.
