The Federal Reserve stood still, and Oracle (ORCL.US) surged 11% to set off a tech stock frenzy

According to Woofun AI, the New York stock market experienced a full rebound on the 28th (local time). The core driving force stemmed from the Federal Reserve's decision to freeze the benchmark interest rate and the concentrated release of favorable news in the field of artificial intelligence. The S&P 500 continued its previous trend, rising for the third consecutive trading day. The day closed at 7743.98 points, up 21.38 points from the previous trading day, and recorded an increase of 0.28%.

This trend indicates that after experiencing early fluctuations, the market has re-established an upward logic supported by stable monetary policy expectations and technological growth narratives.

From a macroeconomic policy perspective, the Federal Open Market Committee (FOMC) maintained the benchmark interest rate within the 3.75% to 4.00% range at the meeting, ending the pace of austerity after raising interest rates by 0.25% for the first time since 2023 last month.

Although Federal Reserve Chairman Kevin Walsh emphasized at the press conference that price stability is still a top priority and gave a positive assessment of the employment situation, the market had previously fully priced this result through the Chicago Mercantile Exchange (CME.US)'s Feder Observation Tool, and the probability that interest rates would remain the same on the eve of the meeting was as high as 93%. Jeff Schulzer, chief investment strategist at the Franklin Templeton Research Institute (BEN.US), analyzed that although there is still a possibility of a further 0.25% increase during the year, the current gradual austerity policy is beneficial to risk assets. The major indices in the intraday market fluctuated briefly before and after the monetary policy statement was issued, but buying power quickly poured in in in the afternoon, eventually driving all four major stock indexes to rise. The Dow Jones Industrial Average rose 97.53 points to close at 52475.10 points, or 0.19%; the tech-heavy Nasdaq Composite Index rose 72.04 points to close at 26549.80 points, or 0.27%; the ETF (IWM.US) corresponding to the Russell 2000 Index, which tracks the performance of small and medium stocks, also rose 1.18 points to 281.36 points, or 0.42%.

At the micro enterprise level, technology stocks have become a key engine driving the recovery of market sentiment. With strong long-term performance expectations, Oracle (ORCL.US) became the most outstanding individual stock of the day, and its stock price rose sharply by about 11.5%. The company expects revenue of $225 billion in fiscal year 2030, while forecasting an average annual growth rate of 35% for the business.

More importantly, the company said it would limit additional financing to less than $20 billion during the 2027-2030 fiscal year. Expectations that long-term growth prospects are clear and financing pressure is expected to ease directly boosted investor confidence.

According to data compiled by Woofun AI, the semiconductor industry also performed strongly. SK Hynix announced that quarterly operating profit reached a record high, driving its stock price in the US market up 13%. Additionally, Micron Technology (MU.US) shares rose 5.86%, Arm (ARM.US) rose 4.10%, Maywell Technology (MRVL.US) rose more than 2%, and AMD (AMD.US) shares rose 3.24%.

The overall strengthening of this sector reflects the market's expectation that increased investment in AI infrastructure will strongly support demand for memory and semiconductor products. After the regular trading session ended, the market turned its attention to the performance performance of Google's parent companies, Alfabet (GOOGL.US) and Microsoft (MSFT.US), which will be announced in the evening. Alfabet's stock price rose by more than 1%, while Microsoft's (MSFT.US) stock price fell slightly by 0.06%, and the trend diverged. Recently, the volatility of AI-related technology stocks has increased due to concerns about capital requirements and actual profitability of large-scale infrastructure investments. Bill Nosy, head of investment at Bank of America Asset Management Group (USB.US), believes that the AI industry's short-term growth momentum is still strong, but whether it can maintain long-term profitability is the key, and there may be differences in the performance of different companies in this area.

Overall, the rise in the New York stock market on the same day was the result of the Federal Reserve's interest rate freeze measures to ease market concerns about austerity policies and the growth expectations of AI-related companies supporting technology stocks. However, since there is still a possibility of further interest rate hikes during the year, future monetary policy trends and the performance of large technology companies will be key factors in determining whether the stock market can continue to rise. As the market focus shifts from macroeconomic policy expectations to micro enterprise profit verification, investors need to pay close attention to the ability of leading technology companies to balance capital expenditure and profit margins in the subsequent earnings season. This will be the core litmus test for the sustainability of AI investment narratives.