Market Highlights

Bonds rose and stocks jumped as the Federal Reserve cut interest rates for a third consecutive time, and after Chair Jerome Powell voiced optimism that the economy will strengthen as the inflationary impact from tariffs proves temporary. The S&P 500 closed 0.7% higher, just short of all-time highs. The Nasdaq 100 ended the day in the green while the Russell 2000 gauge of small-caps jumped 1.3% to a record. Oracle Corp. fell more than 6% in afterhours trading after second-quarter revenue missed estimates. The company’s fate is deeply tied to the artificial intelligence boom and a downbeat earnings could bleed through to other AI wagers. The equity rally spurred by a US interest-rate cut and Federal Reserve Chair Jerome Powell’s sanguine economic outlook unraveled after Oracle Corp. reignited concerns about the vast spending tied to artificial intelligence.