US Stocks End Four-Day Losing Streak, Dow Rises 500 Points; Dell Surges 12%, Oracle Reverses Gains to Fall Nearly 2% Post-Earnings

TradingKey - A pullback in international oil prices provided risk-appetite support for U.S. stocks, snapping a four-day losing streak, with computer hardware and optical communication stocks leading the gains.

At the close, the Dow Jones Industrial Average rose 0.98% to 52,573.29 points; the Nasdaq Composite Index gained 0.96% to 26,333.04 points; and the S&P 500 Index climbed 0.86% to 7,656.98 points.

Tech Stock Performance

Dell (DELL) rose 11.98% to $567.29.

RBC Capital recently initiated coverage on Dell with an "Outperform" rating and a price target of $640. RBC believes that corporate AI investments, compute modernization, storage expansion, and PC refresh demand will support Dell's performance to consistently exceed its long-term targets. Analyst David Paige stated that Dell's end-to-end product portfolio across compute, PCs, storage, and servers, combined with its vast installed base, industry-leading supply chain capabilities, and flexible consumption models (such as subscription-based delivery), positions the company to continue capturing market share. In terms of profitability, RBC noted that the increasing proportion of high-value-add businesses in Dell's product mix, along with growth in its AI server business, are key drivers for operating margin expansion in the Infrastructure Solutions Group (ISG). The firm also noted that Dell's robust free cash flow generation capacity supports shareholder-friendly capital allocation.

Oracle (ORCL) reversed its post-earnings gains to drop 1.74% to $150.28.

The company's first fiscal quarter revenue grew 30% year-over-year to $19.3 billion, while cloud revenue increased 62% year-over-year to $11.6 billion. Among this, Cloud Infrastructure (IaaS) revenue surged 121% year-over-year to $7.4 billion, serving as the core engine driving overall performance growth. Oracle expects second-quarter cloud revenue to grow 65% to 71% year-over-year, indicating that demand for AI computing power continues to unleash rapidly.

However, Oracle's first-quarter capital expenditures reached approximately $28.5 billion, far exceeding the $8.5 billion recorded in the same period last year, a year-over-year increase of more than two times. Capital expenditures in a single quarter alone surpassed about half of the total capital expenditures for the entire previous fiscal year. Meanwhile, Oracle maintained its fiscal year 2027 capital expenditure guidance of $90 billion to $95 billion. With capital expenditures reaching approximately $55.7 billion last fiscal year, this means the scale of investment this year will expand significantly further.

Among mega-cap tech stocks, SpaceX (SPCX) rose 2.04%, Amazon (AMZN) gained 1.94%, Google (GOOGL) advanced 1.77%, Apple (AAPL) rose 1.75%, Microsoft (MSFT) gained 0.65%, Meta Platforms (META) rose 0.57%, Tesla (TSLA) gained 0.52%, and Broadcom (AVGO) rose 0.32%; on the downside, Nvidia (NVDA) fell 0.03%.

[Source: FutuBull]

The Philadelphia Semiconductor Index rose 1.81% to 11,824 points. Among its 30 constituent stocks, 28 advanced and 2 declined.

Among optical communications stocks, Nokia (NOK) rose 4.94%, POET Technologies (POET) gained 4.61%, Amphenol (APH) advanced 4.57%, Ciena (CIEN) climbed 4.43%, Coherent (COHR) rose 4.14%, and Marvell Technology (MRVL) gained 4.03%.

Company News

OpenAI Announces Pause on New Subscriptions for $200 Pro 20X Plan

On September 11, OpenAI Chief Product Officer Tibo posted on X stating that to ensure a good experience for existing users and smooth access to GPT-6 Astra, the company will pause accepting new subscriptions for the $200 Pro 20X tier. He noted that existing subscribers will not be affected, and all other plans and API services will continue as normal.

Tesla Officially Unveils European-Spec Version of Semi

Tesla has officially unveiled the European-spec version of the Semi and confirmed that customer deliveries will begin in 2027. The vehicle is expected to make its physical debut at the IAA Transportation commercial vehicle show in Hanover (September 15 to 20), where further market deployment details will be disclosed.

Industry & Macro News

US August CPI rose 3.4% year-on-year, market expects two Fed rate hikes by year-end

US August CPI rose 3.40% year-on-year, matching the expected 3.40% and the previous reading of 3.40%. US unadjusted MoM CPI came in at 0.4% in August, hitting a new high since June this year and inline with expectations, up from 0.1% previously. Core CPI, excluding food and energy, rose 0.3% month-on-month, beating market expectations of 0.2%. Following the data release, the 10-year US Treasury yield reached its highest level since October 23, 2023, standing at 4.957% and approaching the 5% mark. Traders estimated a roughly 90% probability of a Fed rate hike next week. The market expects the Fed to raise rates twice by the end of the year.

IEA Warns: Iran War Drags Oil Demand to Largest Post-Pandemic Drop, Cautions of Further Weakness in Coming Months

In its September monthly report, the International Energy Agency (IEA) raised its forecast for this year's global oil demand decline to 2.5 million barrels per day, a deepening of 940,000 barrels per day from the previous month's estimate, marking the largest annual demand drop since the COVID-19 pandemic shock in 2020. The IEA no longer expects shipping through the Strait of Hormuz to reopen this year, while warning that as supply remains constrained and commercial inventory buffers rapidly deplete, "further demand destruction may be required in the coming months to bridge the supply-demand gap," making 2026 and 2027 a "lost period" for global oil demand growth.