Live Nasdaq Composite: Markets Step Back on Unilateral Tariff Threat, ORCL Soars
Key Points
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Stocks are lower out of the gate after President Trump threatened unilateral tariffs.
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Oracle is soaring on the heels of a stronger-than-expected earnings report and strong revenue guidance.
- Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better; learn more here.
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Rate Pressure
President Trump is placing greater pressure on the Fed to lower interest rates after this week’s economic data showed a further cooling of inflation both on the consumer and wholesale levels. Speaking of policymakers, he said, “We could save $300 billion dollars if they lower it just one point.” The current range for the Fed Funds rate is 4.25%-4.50%.
The Nasdaq Composite is up 0.19%.
Market Gainers
Oracle (Nasdaq: ORCL) is extending its earnings-fueled rally, gaining 13.7% at last check.
Cardinal Health (NYSE: CAH) is one of today’s winners, gaining 3.5% after raising its FY25 guidance amid “robust cash flow generation,” among other positive catalysts.
Newmont Mining (NYSE: NEM) is up 3.4% as it inches closer to its 52-week high.
The Nasdaq Composite is up 0.09% at last check.
'Buy the Dip'
HSBC strategist Max Kettner is advising investors to “buy the dip” in the stock market ahead of Q2 earnings season. In a note, Kettner’s team improved their view on U.S. equities from “neutral” to “overweight,” the positive catalyst for which was a fresh wave of optimism around AI and the impact from a weaker dollar.
The Nasdaq Composite is currently down 0.04%.
This article will be updated throughout the day, so check back often for more daily updates.
The winds have gone out of the sails of the markets after President Trump threatened unilateral tariffs in the latest reversal. All three of the major stock market averages are falling in unison across the Nasdaq Composite, S&P 500 and Dow Jones Industrial Average. Most sectors of the economy are lower, but tech as a sector is seeing a modest gain.
A Boeing 787 Dreamliner aircraft suffered a horrific tragedy in which an Air India flight headed for London’s Gatwick Airport crashed with hundreds on board. While details are scant, officials are calling the accident “tragic.” Boeing (NYSE: BA) stock is spiraling by 5.2% today, pressuring the Dow Jones Industrial Average.
Most of the Magnificent 7 stocks are trading lower this morning, with the exception of a fractional gain in Microsoft (Nasdaq: MSFT). Meanwhile, cloud company Oracle (Nasdaq: ORCL) is up 11% after reporting better-than-expected quarterly earnings. Oracle’s management is eyeing “dramatically higher” revenue performance up ahead.
On the economic front, wholesale inflation came in weaker than expected, with producer prices increasing 0.1% last month compared with expectations for a 0.2% rise. The latest inflation read comes on the heels of yesterday’s cooler than expected consumer prices data, further fueling the argument for an interest rate cut when the Fed’s FOMC members convene next week.
Here’s a look at the performance as of morning trading:
Dow Jones Industrial Average: Down 192.45 (-0.44%)
Nasdaq Composite: Down 7.06 (-0.06%)
S&P 500: Down 6.05 (-0.10%)
Wall Street Moves
Citi analysts have reiterated a “neutral” rating on high-flying Palantir Technologies (Nasdaq: PLTR) stock, saying they remain “upbeat” on fundamentals but worry about the stock’s lofty valuation.
Morgan Stanley remains bullish on AI leader Nvidia (Nasdaq: NVDA), reiterating the stock as an “overweight” rating and calling it a “top idea.”
Barclays has reiterated Oracle stock as an “overweight” rating on the heels of the cloud company’s strong earnings.
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