Key Takeaways
- U.S. stocks surged, with the S&P 500 (^SPX) hitting fresh all-time highs, driven by the first decline in producer prices in four months, reinforcing expectations for Federal Reserve rate cuts next week.
- Oracle (ORCL) shares soared an impressive 36% following strong AI-driven cloud guidance, contributing significantly to the market's gains.
- Boeing (BA) reached a tentative five-year deal with striking defense workers in St. Louis, offering an average 45% wage increase and a $5,000 signing bonus, potentially ending a month-long strike.
- Alibaba (BABA) announced a $3.17 billion offering of convertible notes due in 2032, with zero coupon and a conversion premium of 27.5% to 32.5%.
- Chipotle (CMG) is expanding its global footprint into Asia for the first time, with plans to open restaurants in Singapore and South Korea in 2026 through a joint venture.
U.S. equity markets experienced a notable rally, with the S&P 500 (^SPX) closing up 0.32% at 6,533.39, reaching new record highs. This surge was largely fueled by data showing producer prices posted their first decline in four months, bolstering investor confidence that the Federal Reserve will begin cutting interest rates as early as next week. The Nasdaq Composite (^IXIC) also edged up 0.08% to 21,896.04, while the Dow Jones Industrial Average (^DJI) closed down 0.45% at 45,505.21.
Technology giant Oracle (ORCL) was a standout performer, with its shares skyrocketing 36%. The significant jump came after the company provided robust AI-driven cloud guidance, with reports indicating a potential $300 billion cloud computing deal with OpenAI and an outlook for its cloud backlog to exceed $500 billion.
In corporate labor news, Boeing (BA) has reached a tentative five-year agreement with its striking defense workers in St. Louis. The proposed deal includes an average wage increase of 45% and the reinstatement of a $5,000 signing bonus, aiming to conclude the month-long industrial action. Union members are scheduled to vote on the proposal on Friday.
Chinese e-commerce giant Alibaba Group Holding Limited (BABA) is offering $3.17 billion in convertible notes due in 2032. These zero-coupon notes feature a conversion premium set between 27.5% and 32.5%.
Fast-casual restaurant chain Chipotle Mexican Grill (CMG) announced its strategic expansion into Asia, marking its first foray into the continent. The company plans to open new locations in Singapore and South Korea in 2026 through a joint venture with South Korea-based SPC Group.
On the geopolitical front, French President Emmanuel Macron spoke with former U.S. President Donald Trump regarding the Russia–Ukraine conflict and the Middle East, conveying concerns over recent war developments. This discussion follows a Russian drone incursion into Polish airspace, prompting a call between Trump and Poland's President Karol Nawrocki. Separately, the U.S. SEC Chief criticized the IFRS Foundation for "chasing political fads" on sustainability, labeling it "a real problem."
In other U.S. news, a U.S. Judge blocked the Trump Administration from restricting access to Head Start and other programs based on immigration status. Additionally, the New York Times reported that a person detained after the Charlie Kirk shooting was not the actual shooter.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.