Midday Market: Utilities Lead as Oracle’s AI Wave Jolts Tech

Introduction#

By midday Wednesday, September 10, 2025, U.S. stocks were split between AI‑linked exuberance and defensive strength. According to Monexa AI intraday data, the S&P 500 (^SPX) hovered just below fresh records with a modest gain, the NASDAQ Composite (^IXIC) inched higher, while the Dow (^DJI) lagged as cyclicals and consumer bellwethers slipped. The two big storylines since the open have been a dramatic re‑rating in Oracle following an AI‑heavy cloud update, and a sharp, guidance‑driven drawdown in Synopsys; those idiosyncratic moves amplified dispersion across Technology, even as classic defensives—Utilities and Energy—led the tape. Cooler wholesale inflation and light inventories data blunted rate‑fear, while Washington’s unusual tug‑of‑war over Federal Reserve governance added a new policy wrinkle without dislodging the market’s base case for easier policy ahead. The result: a market that is firm at the index level but volatile beneath the surface.

Market Overview#

Intraday Indices Table & Commentary#

According to Monexa AI, the S&P 500 printed an intraday high of 6,555.97—another year‑to‑date peak—before consolidating around 6,532.08 by midday. The NASDAQ Composite pushed to within points of its own record run, while the Dow underperformed on weakness in consumer and healthcare heavyweights. Options markets show a mild risk bid fading as volatility digests the morning’s macro data: the CBOE Volatility Index (^VIX) slipped to 14.90 (-0.93%), and small‑cap volatility (^RVX) eased to 22.07 (-0.99%), per Monexa AI.

Under the hood, leadership remains bifurcated. Technology is dominated by outsized, single‑name swings—most notably ORCL, which surged on a blockbuster AI cloud backlog update, and SNPS, which tumbled on a miss and a weaker outlook tied to export‑control frictions. Simultaneously, classical yield/commodity plays outperformed: Utilities rallied hard, and Energy advanced broadly as integrateds, services, and E&Ps climbed. The mix has kept the S&P near highs even with softness in Consumer and Healthcare. For context and corroboration on today’s primary catalysts, see reporting from Bloomberg and CNBC.

Macro Analysis#

Economic Releases & Policy Updates#

Wholesale inflation came in cooler than expected this morning. As flagged on CNBC, August Producer Price Index data were reported as cooling, with commentary emphasizing that both headline and core PPI moved lower on the month, easing immediate pressure on longer‑term rate expectations (CNBC. Separately, wholesale inventories increased +0.10% vs. +0.20% consensus, according to Rick Santelli’s on‑air breakdown (CNBC. This mix supports the market’s existing bias toward a near‑term Fed cut after last week’s softer jobs data, a dynamic also highlighted in coverage noting that a weak August payrolls print has tilted expectations toward policy easing while investors watch Thursday’s CPI for confirmation (Reuters and CNBC.

Policy headlines added a rare twist: the administration appealed a federal ruling blocking the removal of Federal Reserve Governor Lisa Cook, a move that underscores an ongoing fight over central bank independence even as the Senate Banking Committee advanced the nomination of Stephen Miran earlier in the morning (Reuters, CNBC. Markets treated the developments as noise rather than a new macro regime; yields and volatility softened post‑PPI, lending support to Utilities and longer‑duration equities. Morningstar also suggested that proposed U.S. tariffs on pharmaceutical imports and drug‑pricing actions would be “manageable” for large drugmakers, dampening immediate policy shock to the Healthcare complex even as the sector traded lower intraday (Morningstar via Reuters.

Global/Geopolitical Developments#

Overnight and early‑session focus stayed on the AI supply chain and export controls, themes that cut both ways in today’s tape. Softness at SNPS follows management’s commentary on export‑control disruptions to China‑related design IP demand, an issue widely covered by financial media this morning (Reuters, Bloomberg. At the same time, the AI infrastructure buildout narrative accelerated after ORCL highlighted a surge in multi‑billion‑dollar cloud contracts and a towering AI backlog, headlines that reverberated across the hyperscale ecosystem and buoyed select semiconductor and infrastructure names (CNBC, Bloomberg.

Sector Analysis#

Sector Performance Table#

According to Monexa AI’s sector monitor, Utilities were the standout by midday, up +3.36%, with unusually large moves in power‑centric names reported across the open through late morning. Notably, Constellation Energy and Vistra were cited as gaining roughly mid‑to‑high single digits in early trading, alongside outsized strength in GE Vernova and NRG, per Monexa AI’s heatmap. There is a minor discrepancy between earlier heatmap snapshots showing Utilities closer to +1.1% and the sector table at +3.36% by midday; we prioritize the latest table as it reflects the most recent composite print, acknowledging the earlier, lower readings during the opening hour. The size of the advance aligns with a post‑PPI drift lower in implied rates and a continued investor hunt for yield and defensive cash flows; for broader macro color, see CNBC and Bloomberg.

Energy rose +1.63%, a broad‑based move across E&Ps, services, and integrateds. Monexa AI’s heatmap highlighted gains in Baker Hughes, Exxon Mobil, and Texas Pacific Land, with some divergence among refiners where product spreads pressured names like Valero. Technology was roughly flat (-0.08%) despite the day’s biggest single‑name fireworks, reflecting a tug‑of‑war between Oracle’s spike and a steep selloff in Synopsys. Communication Services and Financials traded mixed‑to‑lower, while Consumer sectors and Healthcare broadly lagged on evidence of cautious discretionary demand and margin concerns. Materials slipped as chemicals and coatings lagged even as metals and miners showed strength, consistent with a commodity‑tilted rotation within the group. Sector performance figures are per Monexa AI; for corroboration and context, see Reuters and Bloomberg.

Company-Specific Insights#

Midday Earnings or Key Movers#

The tape’s single most important catalyst was ORCL. Multiple outlets reported that the company unveiled a bullish AI cloud revenue outlook that overshadowed a slightly mixed quarter, with remaining performance obligations highlighted as surging and management flagging several additional multi‑billion‑dollar cloud clients in the pipeline (CNBC, Bloomberg. According to Monexa AI’s heatmap, shares were up approximately +39.7% intraday, though earlier premarket reports cited gains closer to +30%. The difference reflects normal intraday volatility and the evolving tape; we anchor to the latest Monexa AI intraday tally while acknowledging earlier, lower indications. The ripple effects were immediate: AI‑infrastructure adjacencies were bid, with positive read‑across to select hyperscale‑exposed hardware and data‑center names.

Conversely, SNPS fell sharply after missing on adjusted EPS and revenue and issuing softer guidance amid export‑control and IP‑licensing headwinds. Monexa AI shows a decline of roughly -35.6% intraday, with financial media documenting the earnings miss and the macro‑regulatory overhang (Reuters, CNBC. The move reinforces that regulatory friction remains a tangible driver for semiconductor design and IP names.

Elsewhere in Tech, AVGO advanced strongly (Monexa AI heatmap flagged a move near the high‑single digits), and NVDA gained about +4.1%, consistent with a supportive AI‑infrastructure bid and news flow around continued market access and platform dominance in AI compute (Bloomberg. Mega‑caps were mixed: MSFT hovered near flat, while AAPL slipped after its product event, even as one major bank lifted its price target to $270 and reiterated Buy (BofA via CNBC.

In Communication Services, GOOGL and GOOG traded modestly higher, while META and NFLX eased. Reports that Netflix would enable buying ads via Amazon’s DSP weighed on some adtech peers, adding to sector divergence (CNBC. Media complex weakness remained evident across legacy properties, according to Monexa AI heatmap data.

Financials were mixed. Asset‑management and alternatives names outperformed, with Monexa AI showing BX and KKR up around the low‑single digits. Investment‑banking‑heavy MS ticked higher after management flagged a “dramatic improvement” in dealmaking activity at a morning conference (Reuters, while JPM was modestly positive. Payments were softer, with V lagging.

Consumer tape remained cautious. Monexa AI pointed to broad discretionary weakness led by AMZN and restaurant/travel names such as MCD, BKNG, and RCL, even as TSLA traded higher intraday. Staples trailed as well, with pressure in COST and PG; value retail stood out with DLTR higher.

Healthcare underperformed despite Morningstar’s view that U.S. tariff and pricing moves would be manageable for Big Pharma. Monexa AI highlighted declines in HCA, ABT, and ISRG, with selective strength in CVS and MRNA. The sector’s weakness appears more tied to rotation and idiosyncratic news flow than to a singular new policy shock, given the tempered tone of Morningstar’s analysis (Reuters.

Industrials were mixed with a positive tilt, led by infrastructure and electrification plays—Monexa AI cited gains in PWR, ETN, CMI, and GE—but offset by softness in select logistics such as JBHT. Energy followed crude and capex indicators higher—APA, BKR, and XOM rose—while refiners like VLO lagged. In Real Estate, data‑center REITs outperformed—DLR and EQIX—even as the broader REIT complex was more mixed.

Among smaller headline movers, premarket updates showed GME up around +10% on a return to profitability and stronger hardware/collectibles sales, while RBRK dipped on ARR trajectory concerns despite a narrower‑than‑expected quarterly loss and raised outlook. Defense tech AVAV beat on revenue with a record backlog driven by its BlueHalo acquisition but absorbed integration costs; shares were indicated higher in early trade. These developments were covered across the morning by financial media and are reflected in Monexa AI’s intraday tracking (CNBC, Bloomberg, Reuters.

Extended Analysis#

Intraday Shifts & Momentum#

The session moved in three phases. At the open, mega‑cap Tech and Utilities/Power both jumped, but for different reasons: the former on AI infrastructure momentum catalyzed by ORCL, the latter on the post‑PPI duration bid and specific strength in independent power producers. By mid‑morning, dispersion increased: SNPS’s slide deepened, AAPL stayed heavy post‑event despite a sell‑side price‑target lift, and parts of Communications and Consumer rolled over as ad‑tech and travel/leisure names weakened. Into midday, volatility flagged and breadth remained mixed—Utilities and Energy leadership persisted; Materials split between metals strength (NEM, FCX) and chemicals weakness (SHW); Financials stabilized on alternatives strength but payments lagged. The S&P held gains as NASDAQ’s AI‑centric bid offset Dow drags from defensives and staples.

Two structural points stand out for risk management. First, concentration risk remains acute: a handful of mega‑caps can still swing the index tape. Today showcases both sides—ORCL’s surge adding market cap quickly while SNPS removes a comparable slug on the other end. Second, dispersion within sectors is elevated, creating both stock‑picking opportunities and tracking‑error risk for passive allocations. Utilities’ unusually large moves argue for careful position sizing around power generators and data‑center‑linked grids, while Energy’s breadth suggests the commodity tape is still supportive for E&Ps and services even as refining margins wobble.

The macro overlay is straightforward: a cooler PPI and light inventories increase confidence that the Fed can cut without re‑accelerating inflation, but investors are still awaiting Thursday’s CPI print. Policy noise around Fed governance has not yet translated into market stress; the VIX and RVX both softened into midday. In this backdrop, defensives with earnings growth and cash‑flow visibility—Utilities, select REITs, and some Energy—are attracting flows, while Consumer and Healthcare weakness points to renewed scrutiny of margins and volumes into year‑end.

Conclusion#

Midday Recap & Afternoon Outlook#

By midday, the S&P 500 held a +0.30% gain at 6,532.08 as the NASDAQ added +0.11% and the Dow slipped -0.56%, according to Monexa AI. The market’s character is clear: AI infrastructure optimism and a duration‑friendly macro print kept benchmarks supported even as staple consumer and healthcare bellwethers traded heavy. The outsized single‑name action in ORCL and SNPS framed the day’s dispersion in Technology; Utilities and Energy leadership defined the factor tape; and policy headlines around the Fed stayed a sideshow to the inflation trajectory.

Into the afternoon, the path of least resistance hinges on three near‑term drivers. First, follow‑through in AI‑adjacent complex: does the ORCL print sustain a multi‑session momentum trade across data‑center, GPU, and cloud‑platform peers, or does profit‑taking cap the move? Second, CPI positioning: with PPI cooler and inventories soft, the market may keep bidding duration and defensives ahead of Thursday’s report; any surprise could reset that trade. Third, sector rotations: Energy’s breadth and Utilities’ power‑sector rally will be tested if yields back up in the afternoon. We will watch breadth, factor tilts, and intraday leadership concentration into the close. For ongoing updates, see Reuters, Bloomberg, and CNBC.

Key Takeaways#

• Indexes mixed by midday: S&P 500 +0.30%, NASDAQ +0.11%, Dow -0.56% (Monexa AI). Volatility softer: VIX 14.90 (-0.93%), RVX 22.07 (-0.99%).
• Utilities (+3.36%) and Energy (+1.63%) lead; Consumer Defensive (-1.57%), Healthcare (-1.54%), and Consumer Cyclical (-1.42%) lag (Monexa AI).
• Oracle’s AI cloud backlog and outlook sparked an outsized single‑name surge (latest Monexa AI +39.7%), lifting AI infrastructure sentiment even as Synopsys fell sharply (-35.6%) on a miss and weaker outlook (CNBC, Reuters, Bloomberg).
• Cooler PPI and light wholesale inventories supported a duration bid; policy headlines around Fed governance (Lisa Cook appeal, Stephen Miran vote) were treated as noise (CNBC, Reuters).
• Dispersion within sectors remains elevated, increasing idiosyncratic risk and stock‑selection opportunity; watch Utilities/power names and Energy breadth for durability, and track CPI as the next macro catalyst.