Oracle’s first-quarter results, the European Central Bank’s latest rate decision and US inflation data will be the main events to watch this week, with each capable of resetting expectations around technology spending, interest rates and market positioning.
Oracle reports fiscal first-quarter 2027 results on Thursday 10 September. The company is spending heavily to expand its data centre capacity, and the market will want evidence that demand for AI computing can justify that investment.
Oracle is expected to report earnings of $1.74 per share, up 18.5% from a year earlier, while revenue is forecast to rise 28.3% to $19.1 billion. Capital expenditure is expected to more than double to $19.3 billion from $8.5 billion a year ago.
That spending is becoming central to the Oracle story. Expanding data centre infrastructure gives the company greater capacity to serve growing AI workloads, but it also raises the financial commitment required before the full revenue benefit becomes clear. The first-quarter numbers and management outlook should therefore provide a clearer indication of how quickly demand is developing.
Expectations for the second quarter underline the scale of the expansion. Revenue is forecast to rise 32.1% to $21.2 billion, while capital expenditure is expected to increase 85% to $22.3 billion. Earnings, however, are forecast to fall 16% to $1.90 per share from $2.26 a year earlier.
Oracle’s share price has already fallen sharply in recent months, increasing the importance of the update. Options pricing implies a potential 9.5% move after the results. Positioning is currently bullish, although an unwinding of dealer hedging could add pressure if the announcement disappoints.
The shares are trading close to resistance around $155. A move above roughly $157 could bring $180 into view, while a break below $150 could shift attention towards $140. If that level fails, the next area highlighted by the technical picture is around $120.
The European Central Bank announces its latest interest-rate decision on Thursday, with markets pricing in an almost certain rate increase. Another increase is not expected until potentially spring 2027, making the ECB’s guidance on future policy at least as important as the decision itself.
The euro has weakened against the dollar since mid-August after an earlier rally. A more cautious ECB message could add pressure, with EUR/USD potentially moving below $1.155 and towards longer-term support near $1.135. A more hawkish message could instead support a move towards $1.18.
US inflation data follows on Friday 11 September and could have a direct bearing on expectations for the Federal Reserve’s September meeting. Headline consumer price inflation is expected to rise 0.4% month on month in August, compared with 0.1% in July. Core CPI is forecast to increase 0.2%, matching July.
CMC Markets plc (LON:CMCX) is a UK-based financial services company that offers online trading in shares, spread betting, contracts for difference and foreign exchange across world markets.
