LIVE MARKETS-S&P 500 notches record closing high; Oracle forecast miss dampens AI optimism

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S&P 500 NOTCHES RECORD CLOSING HIGH; ORACLE FORECAST MISS DAMPENS AI OPTIMISM

The S&P 500 inched to an all-time closing high on Thursday as market participants continued to digest the Federal Reserve's third and final rate cut of the year, which also paved the way for the central bank to leave the Fed funds target rate where it is, at least until they have a more complete and up-to-date set of economic data to inform their next move.

It marked the bellwether index's first record close since October 28.

But the indexes were split on the day. While the Dow also finished in the green, a disappointing forecast from Oracle ORCL.K raised worries that the vast amount of cash spent on artificial intelligence is not paying off to the extent - or as soon - as investors might have expected. This dampened enthusiasm for the tech sector .SPLRCT in general and chips .SOX in particular, which in turn dragged the Nasdaq to a lower finish.

The Dow Jones Industrial Average .DJI rose 646.26 points, or 1.34%, to 48,704.01, the S&P 500 .SPX gained 14.31 points, or 0.21%, to 6,900.99 and the Nasdaq Composite .IXIC lost 60.30 points, or 0.25%, to 23,593.86.

Materials .SPLRCM and leisure stocks .SPCOMHOTL were clear outperformers, as were banks .SPXBK and aerospace/defense stocks .SPCOMAED, to a lesser extent.

Economic data showed a recent spike in initial jobless claims and a dip in ongoing claims, likely the result of seasonal volatility. A stale report from the Commerce Department revealed the U.S. trade gap in September shrank to its narrowest in over five years, supported by a weak dollar.

Next week, the Labor Department is due to release its November employment and CPI reports, skipping over October, for now. October retail sales and December flash PMI are also on deck.

Here's your closing snapshot:

(Stephen Culp)

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