Oracle Stock Soars 35.95% on Cloud Demand Surge

The United States Department of Justice has requested that a federal appeals court overturn a temporary injunction preventing the dismissal of a Federal Reserve Board member. This case may ultimately be decided by the Supreme Court. The government filed a notice on Wednesday, seeking to have the ruling by District Judge Jia Cobb, who on September 9 found that the dismissal lacked a "reasonable cause" as required by the Federal Reserve Act, overturned by the federal appeals court in Washington. It is unclear when the appeals court will rule.

The key question now is whether the composition of the Federal Reserve Board will be affected during the September 16-17 rate-setting meeting. As long as Cobb's ruling remains in effect, the member in question can attend the meeting. If the appeals court rules against the dismissal, the case could quickly move to the Supreme Court. If the government believes the appeals court is moving too slowly, the dismissal could be directly appealed to the Supreme Court.

Oracle's stock surged 35.95% on Wednesday, marking a historic high for the company, after the cloud computing giant reported a significant increase in cloud computing demand. The company's stock price reached an all-time high, and this surge marked the best single-day performance since 1992. The increase added 244 billion dollars to Oracle's market value, bringing its total market value to 922 billion dollars. On Tuesday, after the market closed, Oracle announced that its unfulfilled contract obligations amounted to 455 billion dollars, a 359% increase from the same period last year.

According to informed sources, Oracle has signed a cooperation agreement with OpenAI, under which the artificial intelligence company will purchase 300 billion dollars worth of computing resources over approximately five years, starting in 2027. This contract would require 4.5 gigawatts of power capacity, roughly equivalent to the output of more than two Hoover Dams or the electricity consumption of about four million households. Following Oracle's disclosure of 317 billion dollars in new contract revenue for the fiscal quarter ending August 31, the company's stock price surged 42% during the day, although the gain narrowed to 36% by the end of the trading session. If the report is accurate, this would be one of the largest cloud computing contracts in history. Oracle has declined to comment on the matter, and OpenAI has not responded to requests for confirmation or comment.

The Office of the Inspector General of the U.S. Department of Labor has initiated a review focusing on the challenges faced by the Bureau of Labor Statistics in collecting and releasing key economic data. According to a letter dated Wednesday, the review will focus on the collection of CPI and PPI information, as well as issues related to the collection, release, and revision of monthly employment data. The Department of Labor oversees the Bureau of Labor Statistics. The letter was sent the day after the Bureau released its annual preliminary revision of employment data, which showed that non-farm employment in the U.S. was revised down by a record 911,000 jobs for the year ending in March. The July employment report, released on August 1, included the largest downward revision of employment data since the onset of the pandemic. The dismissal of the Bureau of Labor Statistics director was announced on the same day.