The stock market fell sharply on Wednesday as Treasury yields rose amid federal deficit fears. This was brought about by the growing concerns on President Donald Trump’s “One Big, Beautiful Bill”, which sets the budget for the year and raises the debt ceiling.
The 10-year Treasury yield almost hit 4.60%, while the 30-year Treasury yield breached the 5.0%-mark at 5.09%. These were the highest recorded since February 2025 and October 2023, respectively.
Overall, S&P 500 dropped 1.6% to 5,845, while NASDAQ declined 1.4% to 18,873.
Tweet of the Day
This is Bullish for $MSFT stock, and profit growth just accelerated from 10% 2qtrs ago to 18% next qtr. 20% is reachable this qtr. https://t.co/gF7xsy7DHl
— David Sharek (@GrowthStockGuy) May 18, 2025
Chart of the Day
Here is the one-year chart of Oracle (ORCL) as of May 14, 2025, when the stock was at $162.
Oracle is expected to have strong revenue growth in the coming years as its AI services are in high demand. Last quarter, the company had its largest booking quarter as it added $48 billion to its backlog. Now, Oracle’s Remaining Performance Obligations (RPO) balances is $130 billion, up 63% from $80 billion a year earlier.
Management expects 31% of total RPO to be recorded as revenue in the next 12 months.
Oracle Record AI demand pushed Oracle Cloud Infrastructure revenue up 51% last quarter. Growth in Oracle’s AI segment of its infrastructure business was “extraordinary” as consumption revenue is 3.5x the size it was a year ago.
Oracle has a May 31 Fiscal year end. Management expects next year’s revenue growth to accelerate by 15%, then grow an additional 20% in the following year. That is big news as revenue grew just 6% last quarter.
ORCL is part of our Conservative Growth Portfolio.
