Good morning, investors. The influx of economic data this week was relegated to background noise after Oracle’s eye-watering surge on Wednesday. We’re unpacking what to know — and then covering the latest on the S&P 500’s record high, inflation and the Fed.

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Only in the AI era can a 48-year-old company add $250 billion in market cap in a single day.

Oracle stock hit a record high on Wednesday, rallying as much as 43% on the back of its blowout earnings results.

Across the 47,000 US earnings reports released since 2020, only 126 of them have catalyzed a one-day rally of 38% or more, according to Bespoke Investment Group.

Most of them have been small companies. Oracle, meanwhile, is worth nearly $1 trillion.

The stock surge helped Oracle founder Larry Ellison add more than $107 billion in net worth the same day, making him the richest person in the world with nearly $400 billion, eking by Elon Musk.

On the earnings call, Ellison said Oracle is taking aim at the AI inference market, which he says will be key to “robotic factories, robotic cars, robotic greenhouses” and more.

The cloud company — which inked a landmark $300 billion computing deal with OpenAI — reported that it has $455 billion in remaining performance obligations.

That’s a 359% increase from a year ago and more than double what Wall Street expected.

CEO Safra Catz said Oracle will onboard multiple multi-billion dollar customers in the coming months, and its backlog of contracts should surpass $500 billion “over the next few months.”

In the coming fiscal years, Oracle forecasts annual cloud revenue to reach: 

Those numbers led the Wall Street Journal to dub Oracle “the new Nvidia.”

Oracle’s cloud infrastructure business has made it a standout performer all year, but Wednesday’s rally pushed it ahead of its large-cap peers in the AI sector.

“Oracle's Q1 represents not only the biggest bookings number we've ever seen in software, but a fundamental shift in the business model towards Data Center Operator,” said Morgan Stanley analyst Keith Weiss. 

His team now forecasts Oracle’s revenue will compound at 31% a year through 2029 to $169 billion — above what Oracle forecasts — bringing its earnings per share estimate that year to $14.44.  

The future sounds so bright that investors squarely ignored the earnings miss in this latest quarter:

Bank of America took Oracle’s astonishing backlog as a reason to upgrade the stock from neutral to buy on Wednesday. 

“It is clear that Oracle is capturing share in the large and rapidly growing market for AI infrastructure,” BofA strategists wrote in a note.

Oracle’s Wednesday move marked its best day in three decades.

Shares of other AI-tied names including Nvidia, CoreWeave, Advanced Micro Devices, Broadcom and Palantir also climbed Wednesday.

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📉PPI inflation was far cooler than expected. The producer price index showed outright deflation for the third time this year, falling 0.1% in August, below the expected 0.3% gain. The core reading was also cooler than expected. (CNBC)

👀 The Labor Department is under investigation. An internal watchdog said it will be looking into how the BLS collects jobs and inflation data. The Office of the Inspector General is leading the inquiry, as it’s meant to be a nonpolitical office. (Bloomberg)

🚢 President Trump called on allies to impose 100% tariffs on China and India. He requested that the EU launch levies on the two nations to pressure Russia over its war in Ukraine. A US official said they would “mirror” any tariffs imposed by the EU. (Yahoo Finance)

📊 Economists expect August CPI inflation to rise 2.9% year-over-year. That would mark the highest print since January, though economists have largely been wrong on their inflation forecasts this year. (FactSet)

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📰 I’m Phil Rosen, co-founder and editor-in-chief of Opening Bell Daily. I’ve published books, lived on three continents, and won awards for my journalism, which has appeared in Business Insider, Fortune, Yahoo Finance, Bloomberg and Inc. Magazine.

I write our flagship newsletter to prepare you for each trading day — unpacking markets, economic data and Wall Street with analysis you won’t find anywhere else.

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