Federal Reserve Holds Rates Steady, Oracle (ORCL.US) Surges 11% to Ignite Tech Stock Rally

According to Woofun AI, the New York stock market saw a broad rally on the 28th (local time), driven primarily by the Federal Reserve's decision to hold the benchmark interest rate steady as well as a release of positive news in the artificial intelligence sector. The S&P 500 index extended its earlier momentum, rising for the third consecutive trading day, and closed at 7,743.98 points, up 21.38 points from the previous session, with a gain of 0.28%.

This trend marks a reset for the market, re-establishing an upward narrative supported simultaneously by stable monetary policy expectations and the growth story of technology companies, after earlier periods of volatility.

On the macro policy front, the Federal Open Market Committee (FOMC) kept the benchmark interest rate within the 3.75%~4.00% range during its meeting, ending the tightening pace that started in the prior month with the first 0.25% rate hike since 2023.

Although Federal Reserve Chair Kevin Walsh emphasized in a press conference that price stability remains the top priority and offered a positive assessment of employment conditions, the market had already fully priced in this outcome through the CME Fed Watch Tool from CME.US, with the probability of unchanged rates reaching as high as 93% ahead of the meeting. Jeff Schulze, Chief Investment Strategist at Franklin Templeton Institute (BEN.US), noted that while the possibility of an additional 0.25% increase within the year remains, the current gradual tightening policy is relatively favorable for risk assets. Major indices experienced brief volatility around the time of the monetary policy statement, but afternoon buying power quickly flowed in, ultimately driving all four major indices higher. The Dow Jones Industrial Average rose 97.53 points to 52,475.10, up 0.19%; the tech-heavy Nasdaq Composite rose 72.04 points to 26,549.80, up 0.27%; and the Russell 2000 ETF (IWM.US), which tracks small- and mid-cap stocks, also rose 1.18 points to 281.36, a gain of 0.42%.

On the micro enterprise level, technology stocks became the key driver of improving market sentiment. Oracle (ORCL.US) stood out as the day’s top performer with its strong long-term earnings outlook, as its share price surged about 11.5%. The company expects fiscal 2030 revenue to reach $225 billion and predicts an annual growth rate of 35% for that business segment.

More importantly, the company stated it will keep additional financing under $20 billion between fiscal years 2027 and 2030. The clear long-term growth prospects and the expectation of eased financing pressure directly boosted investor confidence.

Woofun AI data shows that the semiconductor industry also performed strongly, with SK Hynix announcing record-high quarterly operating profits, pushing its U.S. stock price up 13%. In addition, Micron Technology (MU.US) rose 5.86%, Arm (ARM.US) gained 4.10%, Marvell Technology (MRVL.US) climbed over 2%, and AMD (AMD.US) increased 3.24%.

The overall strength of this sector reflects expectations that increased investment in AI infrastructure will robustly support demand for memory and semiconductor products. After regular trading, market attention shifted to the after-hours earnings announcements from Alphabet (GOOGL.US), Google’s parent company, and Microsoft (MSFT.US). Alphabet’s share price rose more than 1%, while Microsoft's dropped slightly by 0.06%, reflecting a divergence in performance. Recently, volatility in AI-related technology stocks has increased due to concerns over the capital required for large-scale infrastructure investments and actual profitability. Bill Northey, Investment Director at US Bank Asset Management Group (USB.US), believes the short-term growth momentum in the AI industry remains strong, but the ability to sustain profitability in the long run will be crucial, with companies potentially differing in this regard.

Overall, the rise in the New York stock market was the combined result of the Federal Reserve’s rate freeze easing worries about tightening policies, and expectations for growth among AI-related tech companies supporting technology stocks. However, as further rate hikes remain possible this year, the future direction of monetary policy and the earnings performance of large tech companies will be key factors determining whether the stock market can continue to rise. As market focus shifts from macro policy expectations to micro-level corporate earnings validation, investors need to closely monitor leading tech companies’ ability to balance capital expenditures and profit margins during the upcoming earnings season, which will serve as a critical test of the sustainability of the AI investment narrative.