WS #13961

The AI infrastructure trade continues to dominate, with CoreWeave (+19.28%), Super Micro (+19.02%), and Nebius (+34.14%) surging on strong earnings and commentary. CoreWeave's $104B order backlog and commentary on GPU longevity are validating the AI capex cycle, supporting Nvidia (+3.03%) and other data center suppliers like Corning (+5.18%) and GE Vernova (+2.7%). However, after-hours earnings disappointments from Cerebras (-14%), StubHub (-15%), and Cisco (-3%) signal selective profit-taking in high-multiple tech. The US July CPI at 3.4% YoY, in line with expectations, has eased Fed rate hike fears, with the probability of a September hold rising to 60%, supporting equities. Oil prices remain elevated with Brent near $88, as Iran insists the Strait of Hormuz remains closed, countering US claims of control, keeping upward pressure on energy stocks and downward pressure on airlines. The US budget deficit for July hit $432.3B, the highest monthly since 2021, raising concerns about Treasury supply and yields. Wendy's surged 15% on a Trian-led take-private bid, a notable M&A signal. Intel's upsized $20B share offering at $95/share reflects its turnaround momentum but may dilute near-term.