Oracle shares rise as S&P 500 hits 6,600 for first time

Oracle's Stock Surges on TikTok Deal Speculation

Oracle’s stock experienced a significant rise, climbing over 3% on Monday, driven by strong momentum following the confirmation of a preliminary TikTok deal during U.S.-China trade talks in Madrid. This development marked a major shift in the ongoing discussions surrounding the popular social media platform.

The S&P 500 also made history by closing above 6,600 for the first time. While the deal is not yet finalized, Treasury Secretary Scott Bessent confirmed that both governments had agreed on a framework, and President Trump will speak with Chinese President Xi Jinping on Friday to finalize the details. Although no official buyer has been named, Oracle is currently seen as the front-runner in acquiring TikTok.

Shares in Oracle surged as much as 5% in premarket trading after Trump posted about the deal on Truth Social, expressing his approval and stating that a deal was reached for a “certain” company that “young people in our Country very much wanted to save.” Despite a slight decline during the day, the stock still ended up more than 3%.

Oracle’s Existing Role with TikTok

Oracle’s connection to TikTok is not new. The company already stores American TikTok user data through Project Texas, an arrangement that began around 2022. For TikTok to remain operational in the U.S., it must sell to a U.S.-allied company before September 17 or face a potential ban.

Trump, now in his second term, has hinted at possibly extending the deadline. However, Oracle currently has both the infrastructure and political backing to close a deal quickly. Earlier this year, the White House explored a deal where Oracle would manage TikTok, though some reports suggest that ByteDance, the Chinese parent company, might still retain some control. This aspect of the arrangement remains undisclosed.

Other potential bidders include a group led by Frank McCourt Jr., Microsoft, Mr. Beast, and Perplexity AI. However, none of these contenders have the existing setup that Oracle possesses. The company’s servers are already handling the necessary work, which is particularly important given Trump’s push for stronger U.S. control over Chinese apps.

Market Movements and Other Highlights

The S&P 500 closed 0.4% higher, crossing the 6,600 level for the first time. The Nasdaq Composite also hit a fresh high, rising 0.8%, while the Dow Jones showed minimal movement.

Another notable event was Tesla’s stock surging 7% after Elon Musk disclosed he purchased $1 billion worth of his own company’s stock. This marked his first major open-market purchase since 2020 and the largest ever. The move was interpreted as a signal that Musk is betting on Tesla’s next big shift from electric vehicles to robotics, especially as the EV market becomes increasingly competitive.

Not all stocks performed well. Nvidia dropped by 1.8% after Chinese regulators accused the company of violating anti-monopoly laws. The investigation is ongoing, and traders are closely watching the Federal Reserve, which concludes its policy meeting on Wednesday. Recent labor numbers showed weakness, and inflation remained low, increasing expectations that the Fed may cut interest rates. According to the CME FedWatch Tool, there is a 96% chance of a quarter-point cut, with only a 3.6% chance of a half-point cut.

Oracle’s Broader Impact

Oracle continues to capture investor attention, with its stock up 81% for the year. This growth is supported by positive cloud forecasts predicting revenue will reach $144 billion by 2030, aided by a $300 billion deal with OpenAI.

Additionally, Oracle has played a central role in Trump’s AI initiatives. In January, Oracle chairman Larry Ellison joined Sam Altman from OpenAI, Masayoshi Son from SoftBank, and Trump at the Oval Office to announce a $500 billion initiative called Stargate. The plan aims to build AI data centers across the U.S., although the project has faced delays. Nonetheless, the intent behind the initiative remains strong.