AI-Summary – News For Tomorrow
On June 18, 2025, trading at the New York Stock Exchange saw increased speculation of a significant Federal Reserve rate cut in September, potentially 50 basis points, following weaker-than-expected PPI and employment data. CFRA Research’s Sam Stovall suggests this economic softness gives the Fed justification to act aggressively to stay ahead of a weakening trend, potentially boosting the market. Oracle shares surged due to explosive growth in multicloud database revenue driven by AI server demand, leading the market and fueling gains in Nvidia and AMD as investors reinvested in the artificial intelligence sector.
News summary provided by Gemini AI.
Traders work on the floor at the New York Stock Exchange on June 18, 2025.
Brendan McDermid | Reuters
If the numbers come in around these estimates, the Federal Reserve will have room to deliver another rate cut at its September meeting, according to CFRA Research’s Sam Stovall. Traders currently see a certainty that the Fed will cut by at least a quarter point, per the CME Fedwatch tool based on fed futures trading. They also increased their bets following the PPI data that the central bank could make an even deeper cut to rates, by 50 basis points, or a half percentage point.
“With the PPI surprising to the downside, with the employment data showing much greater softness than anticipated, that basically says that there could be a reason for the Fed to cut by 50 basis points,” Stovall said to CNBC. “What they want to do is to ensure that they are not going to be too slow, as the president describes Fed Chair Powell, and that they do at least keep up with or get ahead of the overall weakening trend.”
“That could, I think, certainly light a fire under the market between now and the end of the year,” the chief investment strategist added.
Oracle shares led the market higher after the tech old guard reported that multicloud database revenue from Amazon, Google and Microsoft grew at a whopping rate of 1,529% in its last quarter, fueled by demand for AI servers.
ORCL 5-day chart
Nvidia and AMD were also higher, as investors appeared to pile into the artificial intelligence trade once again.
