Oracle's stock rose over 29% in pre-market trading in the US, European stocks opened higher collectively, the euro fell, and gold maintained its upward trend

Driven by the rise of technology stocks and expectations of interest rate cuts by the Federal Reserve, global stock markets have risen for the sixth consecutive trading day.

On Wednesday, European stocks opened higher collectively, while the Japanese and South Korean stock markets both reached record closing highs. U.S. stock index futures also rose. Oracle surged over 29% in pre-market trading, with projected cloud infrastructure revenue growth of 77% to $18 billion for the fiscal year 2026. Taiwan Semiconductor rose over 2% in pre-market trading, with August sales up 33.8% year-on-year.

Investors are focused on the upcoming U.S. inflation report this week, which will directly impact the Federal Reserve's interest rate decision next week and the rate cut path for 2025. Meanwhile, geopolitical risks are also on the rise. According to CCTV News, an explosion occurred in the Katara area north of Doha, the capital of Qatar, on September 9 local time. The Israel Defense Forces confirmed a precision strike against senior Hamas leaders, which has driven up oil prices.

• Oracle surged over 29% in pre-market trading, with projected cloud infrastructure revenue growth of 77% to $18 billion for the fiscal year 2026. Taiwan Semiconductor rose over 2% in pre-market trading, with August sales up 33.8% year-on-year.
• European stocks opened higher collectively, with the Euro Stoxx 50 index up 0.48%, the UK FTSE 100 index up 0.17%, the French CAC 40 index up 0.26%, and the German DAX 30 index up 0.38%.
• The Nikkei 225 index closed up 0.9%, breaking the August peak and setting a new closing high at 43,837.67 points. The Tokyo Stock Exchange index closed up 0.6% at 3,140.97 points. The Seoul Composite Index closed up 1.7%, reaching a new closing high at 3,314.53 points.
• The yield on the 10-year U.S. Treasury bond changed little, standing at 4.08%
• The yield on Germany's 10-year government bonds rose two basis points to 2.66%.
• The euro fell 0.2% against the US dollar to 1.1683.
• Spot gold rose 0.53% to $3,645.42 per ounce.
• West Texas Intermediate crude oil increased by 0.69% to $62.49 per barrel.

Focus on the Federal Reserve: Cooling Employment and Inflation Tests

Ahead of next week's Federal Reserve meeting, investors are closely watching the Producer Price Index (PPI) and Consumer Price Index (CPI) to be released this week. These data are seen as key indicators for assessing the Fed's next moves. Current predictions in the money market suggest that the Fed will cut interest rates two to three times this year.

Kyle Rodda, a market analyst at Capital.com in Melbourne, stated:

“From the current market risk appetite, it seems the market believes (rate cuts) are sufficient to protect the US economy from recession. However, a hot inflation report would complicate matters, forcing the Fed to make difficult trade-offs between the labor market and price stability.”

Supporting the expectations for rate cuts are weak employment data. The US government released preliminary benchmark revision data on Tuesday, indicating that the strength of job growth in the year ending March this year was far below previous reports. Payroll employment may be revised down by a record 911,000, a decrease of 0.6%. Final data will be released early next year.

Dilin Wu, a research strategist at Pepperstone Group Ltd., pointed out:

“The market expects a slight decline in US PPI, and if the results meet expectations, it may strengthen the market's bets on a 50 basis point rate cut by the Fed in September, putting additional pressure on the dollar. However, last month's data showed that inflationary pressures have not fully transmitted from producers to consumers, making tomorrow's CPI data even more critical.”

S&P 500 futures rose 0.2%, and Nasdaq 100 futures increased by 0.2%. Oracle shares surged over 29% in pre-market trading, with expectations that cloud infrastructure revenue will grow by 77% to $18 billion in fiscal year 2026. Taiwan Semiconductor shares rose over 2% in pre-market trading, with August sales increasing by 33.8% year-on-year.

Spot gold rose 0.53% to $3,645.42 per ounce.

Strong Performance in Asian Markets, Tech Stocks as Dual Engines

Driven by optimistic sentiment, Asian stock markets performed outstandingly. On Wednesday, the Korea Composite Stock Price Index (Kospi) rose by as much as 1.8%, with major contributors being the index-weighted stocks Samsung Electronics and SK Hynix. Thanks to the country's ongoing corporate reform movement and the artificial intelligence boom, the index has increased by over 38% year-to-date.

The Indian stock market also rose, with the Nifty 50 index increasing by up to 0.7%, primarily driven by Infosys Ltd. and Tata Consultancy Services Ltd.

Additionally, U.S. President Trump stated that he is prepared to work with the European Union to impose comprehensive new tariffs on China and India, the two major buyers of Russian oil, to pressure Russia into negotiations regarding the Ukraine issue. He also mentioned plans to discuss trade issues with Indian Prime Minister Modi "in the coming weeks."

Meanwhile, geopolitical risks are also on the rise. According to CCTV News, an explosion occurred in the Katara area north of Doha, Qatar, on September 9 local time. The Israel Defense Forces confirmed a precision strike against senior Hamas leaders, which pushed oil prices higher. West Texas Intermediate crude rose by 0.69% to $62.49 per barrel.