What happened last week…
All three major indices finished in the green last week with performances as follows: DJIA (0.95%), S&P 500 (1.59%), NADAQ (2.03%). Both the S&P 500 and NASDAQ notched back-to-back weekly gains. During the week, the DJIA eclipsed 46,000 for the first time and NASDAQ surpassed 22,000 for the first time. Year-to-date performances are as follows: DJIA (7.73%), S&P 500 (11.95%), NADAQ (14.66%).
Oracle(ORCL) rose 35.95% on Wednesday after the company announced quarterly earnings. It was the stock’s best performance since 1992 as the company added $244 billion in market capitalization to reach $922 billion. Investors were pleased with the remaining performance obligations ($455 billion, up 359% year-over-year) and the forecast for cloud infrastructure revenue. For fiscal 2026, cloud infrastructure revenue is expected to reach $18 billion, then $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years. CEO Safra Catz said, “We signed four multi-billion-dollar contracts with three different customers in Q1.”
Uber Technologies(UBER) announced it will offer helicopter ride services on its app as soon as next year as part of its collaboration with Joby Aviation (JOBY). Joby recently purchased urban air taxi business Blade Air Mobility for $125 million. Uber also announced that it has partnered with fintech company Pipe, which will help restaurants obtain working capital with fewer hurdles to get funding.
Theinflation rateyear-over-year for August matched expectations of 2.9%. Meanwhile, thecore inflation rateyear-over-year for August matched expectations as it remained at 3.1%.
According to FactSet, as of September 12, for Q3 2025, the estimatedearnings growthrate for the S&P 500 is 7.6%, which would be the ninth consecutive quarter of growth. The figure is higher than the 7.2% estimate on June 30. The estimatedrevenue growthrate for the index is forecasted to be 6.2%, which is above the 4.8% growth projection on June 30.
Happening this week…
On Wednesday, the Federal Open Market Committee will make itsinterest ratedecision. According to the CME FedWatch Tool, as of September 12, there is a 94.5% probability that rates will be reduced by 25 basis points and a 5.5% probability that rates will be reduced by 50 basis points. Rates have remained at their current level of 4.25% to 4.50% since December 2024.
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- The Rockline Team
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