Stock Market Falls In Volatile Week As Oil Prices Surge; Oracle, Nvidia Buoy AI Plays: Weekly Review

• Oil prices hit highest closes since late 2022 after tanker attacks in Iraq and the Strait of Hormuz; IEA announced record 400 million barrel release from strategic reserves including 172 million from the U.S.
• Oracle jumped on strong earnings (EPS up 21% to $1.79) and guidance that eased AI spending concerns; Nvidia announced investments in Thinking Machines Lab and $2 billion in data center operator Nebius Group
• Mixed economic data showed core CPI inflation holding near 5-year low of 2.5%, but core PCE rounded up to 3.1%; Q4 GDP growth was revised down sharply to 0.7% from prior estimates

Market Summary: Volatile Week as Oil Surge Pressures Stocks

Market Performance

Major indexes fell for the second consecutive week, declining near their 200-day moving averages amid oil price volatility. The Nasdaq showed relative strength, supported by AI infrastructure stocks. Weakness was broad-based across sectors, with Treasury yields rising alongside crude prices.

Oil Market Crisis

U.S. crude oil spiked to nearly $120/barrel Sunday night before pulling back as the IEA announced a record 400 million barrel release from strategic reserves (172 million from the U.S.). However, prices rebounded above $95/barrel by Thursday—the highest close since late 2022—with Brent crude topping $100. The Strait of Hormuz remains effectively closed except to Iranian tankers, while tanker attacks in Iraq halted terminal operations. Energy, fertilizer, and chemical stocks rallied on supply concerns.

Key Company Developments

Oracle (ORCL): Stock surged on strong earnings, with adjusted EPS up 21% to $1.79, easing concerns about expensive AI investments.

Nvidia (NVDA): Announced investments totaling $2 billion in data center operator Nebius Group and an undisclosed stake in Thinking Machines Lab, raising circular financing concerns. Stock rose modestly.

Adobe (ADBE): Beat fiscal Q1 estimates but announced CEO departure, stock declined.

Cybersecurity: Rubrik reported surprise profit with 46% revenue growth to $378 million. SentinelOne (S) posted 75% EPS gain; Netskope (NTSK) beat expectations.

Other Notable Results:

• TSMC February sales up 22% YoY to $10 billion
• Nio posted first-ever quarterly profit, revenue up 76%
• Tesla China wholesale sales surged 91% in February

Economic Data

Core CPI inflation held near five-year low at 2.5%, though core PCE reached 3.1%. Q4 GDP growth revised down to 0.7%.