US stocks overcame early weakness as mild inflation data boosted the outlook for rate cuts and an upbeat forecast from Oracle lifted Big Tech.
The S&P 500 climbed 0.38% to its fourth gain in five sessions. The Nasdaq Composite and Dow both advanced 0.24%.
The odds on a September rate cut climbed to 80% after wholesale inflation increased less than expected last month. Producer prices edged up 0.1%, half the rise forecast by economists. A separate report implied softening in the jobs market (another reason to lower rates): first-time claims for unemployment benefits were broadly steady last week at 248,000, holding at the highest level since October. The yield on 10-year US treasuries declined six basis points to 4.364%. The US dollar index dropped 0.74%.
AI stocks rallied after Oracle hiked its revenue forecast, citing strong demand for AI. Shares in the company jumped 13.31%. Nvidia, Microsoft and Broadcom all gained at least 1%. "Oracle is another piece in the mosaic of AI capex spending and the ongoing need for more compute that feeds into the AI revolution," Art Hogan, chief market strategist at B. Riley Wealth, told Reuters. "When the winds blow in that direction, you're definitely going to see the key players like Microsoft and Nvidia also catch that tailwind."
The Dow's gains were kept in check by a 4.79% slump in Boeing after one of its Dreamliner 787s crashed in India. Drags on the Nasdaq included Tesla, Alphabet and Netflix.
Rate-sensitive utilities was the best of the sectors, gaining 1.26% as treasury yields declined. Tech was next best, up 1.01%. The two sectors that matter most for the ASX - materials and financials - added 0.52% and 0.06%, respectively.
Gold climbed to its highest in a week, supported by haven-buying amid tensions in the Middle East. Gold futures settled US$58.70 or 1.8% ahead at US$3,402.40 an ounce. However, movements on the spot market suggested some of the heat came out of the rally in later action. The spot price was lately ahead US$19.81 or 0.59% at US$3,385.35. "Gold is up for the second straight day, largely on heightened geopolitical risks. If gold clears $3,400 again, minor hurdles at $3,417 and $3,431 remain — but a breakout to new all-time highs looks likely ultimately," Peter Grant, vice president and senior metals strategist at Zanier Metals, told Reuters.
Oil backed off a two-month high after US President Donald Trump said an Israeli attack on Iran "could very well happen" but was not necessarily "imminent". Crude prices jumped 4% on Wednesday to a two-month high after the US advised some staff in the Middle East to evacuate ahead of a possible attack by Israel on Iran, and Iran threatened to hit US assets in the region if relations between the US and Iran deteriorate. Overnight, President Trump warned there was a "chance of massive conflict" after Iran said it had been warned that Israel was planning to attack. "I don't want to say imminent, but it looks like something that could very well happen," Trump told reporters. Brent crude settled 41 US cents or 0.6% lower at US$69.36 a barrel, a day after jumping 4.34%. The US oil benchmark, West Texas Intermediate, eased 0.2% to US$67.97.
Iron ore gave back some of Wednesday's gains as traders awaited more details of the latest US-China trade deal. Negotiators wrapped up two days of talks by declaring they had a "framework" of a deal, but details have been scarce. Benchmark ore on the Dalian Commodity Exchange dipped 0.21% to US$98.05 a metric ton, a day after rising 1%.
Copper rose in London and fell in Shanghai as each market responded to competing narratives: enduring demand in London as US buyers seek to beat a possible tariff on copper imports; and weakness in China as seasonal demand diminishes. Benchmark copper on the London Metal Exchange firmed 0.44% to US$9,690.50 a metric ton. Copper futures on the Shanghai Futures Exchange eased 0.7% to US$10,947.50. "LME and SHFE copper prices have been diverging as China's domestic demand for copper has shown signs of seasonal weakening, while LME is being supported by possible U.S. tariffs on copper imports," a Hangzhou-based metals analyst told Reuters.
Key events today:
US preliminary June consumer sentiment - tonight
US preliminary June inflation expectations - tonight
S&P 500: up 23 points or 0.38%
Dow: up 102 points or 0.24%
Nasdaq: up 47 points or 0.24%
VIX: up 4.4% to 18.02
US 10-year treasury yield: down 6 points to 4.364%
Dollar: up 0.33% to 65.3 US cents
Iron ore (Dalian): down 0.21% to US$98.05
Brent crude: down 41 US cents or 0.6% to US$69.36
Gold (futures): up US$58.70 or 1.8% to US$3,402.40
Gold (spot): up US$19.81 or 0.59% to US$3,385.35
Silver (spot): down 1 US cent or 0.02% to US$36.34
Palladium (spot): down US$10.50 or 0.98% to US$1,062.50
Antimony (China ore): down 0.1% to US$20,309
NYSE Arca Gold Bugs: up 1.54%
Bitcoin: down 2.19% to US$106,512
Copper (LME): up 0.44% to US$9,690.50
Nickel (LME): down 0.26% to US$15,105
Lithium carbonate (China spot battery grade): up 0.15% to 7,443 yuan
Global X Lithium & Battery Tech ETF: down 0.97%
Uranium (spot): down 0.54% to US$69.75
Global X Uranium ETF(URA): up 0.39%
BHP: down 1.58% (US); down 2.17% (UK)
