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Markets await tonight's US CPI print just as Oracle re-lights the AI-infrastructure trade.
US stocks have drifted lower in recent sessions. The Nasdaq, S&P 500, and Dow all eased, pressured by surging oil and climbing bond yields. The 30-year Treasury yield topped 5.3% and US mortgage rates hit a 14-month high.
Tonight brings two drivers in one session. The US CPI inflation report is due and will set the tone for trading, while the market is still digesting Oracle's earnings blowout that jolted the tech sector.
Oracle jumped about 7% after hours. Its cloud infrastructure revenue more than doubled, and management guided fiscal 2027 revenue to at least US$90 billion. The numbers revive the big question: is AI spending really turning into real revenue?
AI-cloud hyperscaler; the direct capex comparison to Oracle
Tonight's Catalysts
Oracle's cloud blowout re-lights the AI-infrastructure trade
Oracle (ORCL) reported cloud infrastructure revenue up 121% to US$7.39 billion, with remaining performance obligations topping US$664 billion and more than US$30 billion in new AI cloud contracts booked in a single quarter. Adjusted earnings of US$1.92 per share beat consensus. FY2027 revenue guidance of at least US$90 billion makes Oracle the cleanest gauge of AI demand.
US CPI sets tonight's tone
US futures are steady as traders wait for the CPI inflation print. The earlier producer price (PPI) data came in roughly in line, but hot enough to lift rate-hike expectations. A hotter-than-expected CPI could pressure long-duration tech stocks, while a softer number could give risk appetite room to breathe.
US crude topped US$100 a barrel for the first time since May, lifted by geopolitical tension. The energy surge complicates the inflation picture right before the CPI release, and it has already helped push bond yields higher and weigh on gold. It is the wild card that could sharpen the market's reaction to tonight's data.
Pre-Market Pulse 📊
The focus is on how the market digests Oracle's surge into the CPI print. Beyond the watchlist, semiconductors have been a bright spot this week, with Advanced Micro Devices (AMD) firming and AI-chip sentiment improving. Rate-sensitive names are worth watching into the release.
Macro Note 📝
The 30-year Treasury yield above 5.3% and the 10-year near 4.9% are the core pressure on equities. US mortgage rates hit a 14-month high, while gold eased as rate-hike expectations rose. Expensive oil plus high yields make tonight's CPI data all the more pivotal.
Conclusion
Tonight is a meeting of two forces: the micro euphoria from Oracle's cloud blowout against the macro pressure from inflation, oil, and rates. The point is not to guess the direction, but to understand where the sensitivity sits.
If CPI comes in soft, AI stocks led by Oracle could find fresh energy. If the data runs hot, expensive oil and high yields could extend the pullback. What stocks are you watching tonight?
Want to track how these names move in real time? Check Watchlist on Gotrade and set your strategy before the US session opens.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms registered with Kominfo (Indonesia's Ministry of Communication and Informatics). His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
