Stock Market Live September 10: Tame Inflation Data Sends S&P 500 (VOO) Flying
Key Points
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The US Bureau of Labor Statistics reports wholesale inflation grew only 0.1% in August.
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Oracle reported an earnings miss but great guidance last night.
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Wednesday Wrap-up
The Vanguard S&P 500 ETF closed Wednesday at 599.64, up 0.3%.
Downgrading HP, Inc.
Evercore ISI analyst Amit Daryanani downgraded S&P 500 component company HP (NYSE: HP | HP Price Prediction) stock to “in line” this morning, giving the PCs-manufacturer a price target of $29.
“Our downgrade reflects the fact that the stock is trading around our price target of $29 and for us to see further upside we need to see a clear path to EPS/FCF numbers moving higher, but that is unlikely to happen in the near-term given a host of cross currents,” said the analyst. “The risk we see for HP could be that much of the strength, especially in PCs, is from pull-ins due to tariff worries and that could create some risk to estimates in FY26, especially in H1.”
HP stock is down more than 1% in response. The Voo’s gain has been cut to 0.3%.
Synopsys Comes Up Short
A third company reporting last night was semiconductor design software maker Synopsys (Nasdaq: SNPS) — and the news it had to report wasn’t so great, either as a leading indicator of AI chip demand, or for Synopsys itself.
Fiscal Q3 2025 earnings came in at $3.39 per share, 41 cents short of expectations, and revenue was a bit on the weak side as well, at $1.74 billion. Worse news for investors, Synopsys said its Q4 earnings will be only $2.76 to $2.80 per share, versus analyst forecasts for $4.14. Full year earnings will also come up light, $12.76 to $12.80, and predicted revenue of no more than $7.1 billion will fall far short of analyst hopes for $7.4 billion.
Synopsys stock is crashing 34%.
AeroVironment Beat Earnings
In contrast to Oracle, military drones company AeroVironment (Nasdaq: AVAV) beat earnings by a penny last night. AV earned $0.32 per share in its own fiscal Q1 2026, and revenue came in stronger than expected at $454.7 million. Guidance was also pretty great, with the drones company predicting it will earn between $3.60 and $3.70 per share this fiscal year (well ahead of analyst forecasts).
AeroVironment stock, however, is down about 1% in the first few minutes of trading. The Voo’s gain has been cut to 0.4%.
This article will be updated throughout the day, so check back often for more daily updates.
A surprise reading on inflation (a surprisingly good reading) sent the Vanguard S&P 500 ETF (NYSEMKT: VOO) soaring this morning, up 0.6% premarket.
According to the U.S. Bureau of Labor Statistics, the producer price index (PPI), which reflects wholesale prices in the U.S., declined 0.1% in August. This was 20 basis points less than economists had been predicting, and follows a downward revision to 0.7% for July’s wholesale price inflation.
Both total PPI, and core PPI, which excludes volatile food and energy prices, declined by 0.1%.
What does this mean for investors? Well, last week we saw two reports indicating weak hiring in the U.S., indicative of an economy slowing enough that it might frighten the Federal Reserve into lowering interest rates. Now we have at least one inflation reading (expect another, the consumer price index, tomorrow) that suggests it might be possible to lower interest rates safely, without exacerbating inflation rates.
Basically, the Fed just got a green light to cut interest rates at its Federal Open Markets Committee meeting on September 17. And because lower interest rates are generally viewed as “good” for the stock market, investors are responding by buying stocks this morning.
Earnings
S&P 500 component company Oracle (NYSE: ORCL) missed earnings by a penny last night, reporting $1.47 per share in profit for its fiscal Q1 2026, on sales of $14.9 billion — also below expectations.
But Oracle told investors its cloud database revenue surged 15x in size last quarter as customers that include Alphabet (Nasdaq: GOOG), Amazon.com (Nasdaq: AMZN), and Microsoft (Nasdaq: MSFT) gobbled up AI server time. Oracle forecast that its cloud infrastructure revenue will grow another 14x in size through 2030, to $144 billion.
And Oracle stock is trading up 33% premarket on the news.
Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.
He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.
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