Markets Mixed as Iran Conflict Overshadows Positive Inflation Data; Oracle Soars on AI Demand

Oracle shares surged 9.18% to close at $163.12 on Wednesday after the company reported fiscal third-quarter results that exceeded Wall Street expectations across the board. Total revenue reached $17.2 billion, representing 22% year-over-year growth — the first time in over 15 years that both organic revenue and non-GAAP earnings per share grew at 20% or more in a single quarter. Non-GAAP earnings per share came in at $1.79, up 21%.

The standout was Oracle's cloud infrastructure business, which posted $4.9 billion in revenue — an 84% increase that accelerated from the prior quarter's 68% growth rate. Total cloud revenues hit $8.9 billion, up 44%. The company's remaining performance obligations ballooned to $553 billion, a staggering 325% increase from the prior year, driven primarily by large-scale AI contracts.

Management raised its fiscal 2027 revenue forecast by $1 billion to $90 billion and assured analysts that no additional debt would be needed in 2026 beyond what had already been announced, as most AI infrastructure buildout is funded by customer prepayments. The results answered growing questions on Wall Street about whether the massive AI data center spending cycle would translate into real revenue growth for infrastructure providers.

The Bureau of Labor Statistics reported that consumer prices rose 0.3% in February on a seasonally adjusted basis, putting the annual inflation rate at 2.4% — exactly in line with economists' forecasts. Core CPI, which strips out volatile food and energy components, posted a 0.2% monthly gain and a 2.5% annual rate, also matching expectations. The report would normally be welcome news for markets, but its impact was muted because the data was collected before the Iran conflict escalated.

Shelter costs, the single largest component of the index, increased just 0.2% for the month, pulling the annual rate down to 3%. Rent specifically rose only 0.1%, the smallest monthly increase since January 2021. Egg prices dropped 3.8% month-over-month, putting the annual decline at a remarkable 42.1%. On the flip side, apparel prices jumped 1.3% — the steepest monthly increase since September 2018 — and food prices accelerated 0.4%, putting the annual increase at 3.1%.

From the Federal Reserve's perspective, the tame reading likely keeps the central bank in a holding pattern as it monitors how last year's rate cuts and the current geopolitical crisis affect the broader economy. Analysts cautioned that the report may be the last clean inflation reading for some time, as sustained increases in crude oil prices tend to ripple through transportation, shipping, and a wide range of consumer goods within weeks.

Shares of Hims & Hers Health climbed another 13% on Wednesday as investors continued to digest the implications of the company's landmark deal with Novo Nordisk, announced over the weekend. Under the agreement, Novo Nordisk authorized Hims to sell branded versions of its blockbuster GLP-1 medications Ozempic and Wegovy — including both injectable and recently launched oral pill forms — directly through the Hims telehealth platform. In exchange, Hims agreed to stop marketing compounded alternatives to those drugs.

The deal resolved a heated legal dispute that had been dragging on both companies. Novo Nordisk had sued Hims after the telehealth company began offering a $49 compounded oral version of Wegovy, which Novo claimed infringed on its intellectual property. The settlement eliminates a major legal overhang for Hims while opening a significant new distribution channel for Novo's weight-loss franchise. Barclays raised its price target on Hims to $29 following the announcement.

The stock's cumulative gain since the deal was first reported on March 9 reached approximately 46%, reflecting a fundamental shift in how the market values the company. Analysts noted that Hims has effectively been rerated from a legally challenged compounder to a legitimate distribution partner for one of the world's largest pharmaceutical companies in the rapidly expanding GLP-1 weight-loss drug market.

Navitas Semiconductor shares soared 24.88% to close at $10.84 on Wednesday after the chipmaker launched a suite of new power platforms targeting the booming AI data center market. The centerpiece announcement was a 10-kilowatt DC-DC power conversion platform that achieves 98.5% peak efficiency at 1 MHz switching frequency, delivering power density of 2.1 kW per cubic inch — metrics the company says set new industry benchmarks for next-generation AI computing infrastructure.

The company also introduced two new packages in its fifth-generation GeneSiC silicon carbide technology platform: a top-side cooled QDPAK and a low-profile TO-247-4L with asymmetrical leads. These 1200-volt SiC MOSFETs are designed for the 800-volt DC power architectures increasingly adopted by hyperscale AI data centers, including compatibility with Nvidia's next-generation AI factory computing platforms.

The announcements signal a strategic pivot for Navitas away from its traditional mobile and consumer semiconductor business toward higher-margin AI infrastructure, energy grid, and industrial electrification markets. The company plans to showcase its full portfolio of gallium nitride and silicon carbide power solutions at the APEC 2026 conference in San Antonio later this month. The stock's sharp move reflects growing investor appetite for companies positioned in the AI power infrastructure supply chain.