Oracle Corp (ORCL +5.69%) finished up 5.7% on Thursday, Sept. 3, 2026, after a Governor of the U.S. Federal Reserve indicated he'd prefer to keep interest rates steady.
The S&P 500 and Nasdaq Composite finished Thursday's trading up 1.1% and 1.4%, respectively.
NYSE: ORCL
Key Data Points
Fed's Waller signals openness to holding rates steady in September 2026
Federal Reserve Governor Christopher Waller told Reuters on Thursday that if the next inflation reading shows price increases moderating, he is "willing to support holding the policy rate at its current level." He said that he would prefer to "give disinflation a chance," rather than to raise rates too early.
He did, however, say that he would support a rate hike if the data shows inflation heating up.
The market has seen a hike as increasingly likely, today's comments led to a drop in those expectations, and stocks across the board saw a bump.
Oracle's $43 billion debt load leaves it exposed to Fed rate moves
Tech stocks in general tend to be sensitive to interest rate changes, but Oracle is especially so, given its substantial debt burden. The company has watched its free cash flow turn deeply negative as it spends enormous sums in a race to build AI data center capacity.
Image source: Oracle.
Oracle has turned to debt (and equity) to fund the deficit. The company sold $43 billion in bonds last year and expects to raise another $20 billion in the current year, on top of a $20 billion equity raise.
Higher interest rates mean borrowing becomes more expensive and puts further financial strain on a company already on shaky ground.
