The S&P 500 reaches an all-time high, Oracle takes advantage

The US markets celebrated Monday the confirmation of a preliminary agreement between Washington and Beijing regarding the future of TikTok. Oracle, the favorite to acquire the Chinese platform, jumped more than 3% while the S&P 500 crossed the symbolic threshold of 6600 points for the first time.

ByteDance ordered to sell TikTok, Oracle in a good position

Oracle is now established as the favorite to take over TikTok in the United States. Monday morning, the company’s stock jumped after Donald Trump stated on Truth Social that a deal had been reached with a certain company, an obvious hint at the Chinese platform.

The negotiations, held in Madrid between American and Chinese delegations, resulted in a framework agreement confirmed by Treasury Secretary Scott Bessent.

This announcement boosted Oracle’s stock, already up 81% since the start of the year thanks to strong cloud forecasts. Larry Ellison’s group indeed benefits from a decisive asset: it has hosted American TikTok data since 2020 through the “Project Texas.” 

This existing infrastructure gives it a head start over other contenders, whether it be Microsoft, the consortium led by Frank McCourt, or even more unexpected figures like Mr. Beast.

The geopolitical dimension further increases the pressure. ByteDance, TikTok’s parent company, must imperatively sell its American operations before September 17, under penalty of a total application ban. 

According to Bessent, Washington has reached a new stage by making Beijing understand it was ready to go as far as a permanent shutdown, a lever that helped unblock discussions.

The S&P 500 sets a new all-time record

The S&P 500 rose 0.5% Monday, crossing the symbolic threshold of 6,600 points for the first time, while the Nasdaq Composite marked a sixth consecutive record with a gain of 0.9%. 

These performances reflect market optimism, fueled both by progress in Sino-American trade negotiations and expectations around the next Federal Reserve decision.

Among the leading stocks, Tesla stood out with a 7% surge after Elon Musk announced the purchase of one billion dollars worth of his own company’s shares.

This operation, the largest ever carried out by the Tesla CEO on the open market, was interpreted as a strong vote of confidence in the group’s future, which is now betting on robotics beyond electric vehicles.

In contrast, Nvidia fell 1.8% after Chinese regulators opened an investigation for possible antitrust law violations. This setback illustrates the persistent fragility of technological relations between Washington and Beijing, even as a preliminary agreement on TikTok suggests a relative easing.

Investors are also closely watching the Fed meeting, which ends Wednesday. The slowdown in the job market and moderate inflation reinforce expectations of an interest rate cut. According to CME’s FedWatch tool, the probability of a quarter-point easing is 96%.

Oracle’s surge, combined with the S&P 500 record , thus symbolizes the enthusiasm of a market where politics, geopolitics, and finance closely intertwine. In this balancing act, Oracle currently seems to enjoy the best momentum.