WS #14035

From 500 msgs · 7 key-dev

Wall Street closed at record highs on Thursday as July PPI came in flat, reinforcing expectations that the Fed will hold rates steady in September (FedWatch probability of a hold now ~66%, up from ~50% two days ago). The S&P 500 rose 0.65% to 7,798.99, the Nasdaq gained 0.81%, and the Dow added 0.13%. Oil prices fell ~2% (Brent -2.14% to $87.07, WTI -2.43% to $81.25) as US Energy Secretary Chris Wright reported Hormuz oil exports near 9 million bpd, easing supply fears despite ongoing geopolitical tensions. This risk-on backdrop lifted tech and AI-related names, with Nvidia up 0.5% (market cap $5.45T), SanDisk +13.7%, and Meta +2.8%. However, Cisco fell 8.9% despite beating earnings, as investors took profits on already-high expectations, and Workday surged 17.8% on Silver Lake acquisition talks. Reddit jumped 11% after-hours on S&P 500 inclusion, effective August 18, replacing AvalonBay. The de minimis tariff loophole closure was upheld by the US Court of International Trade, a legal win for the administration that could pressure importers and benefit domestic producers. Meanwhile, OpenAI's revenue run rate topped $40B ahead of its IPO, and Anthropic reportedly plans a $2T IPO in October, signaling continued AI investment momentum. Geopolitically, the US-Iran stalemate persists with no progress on Hormuz talks, but oil's decline suggests the market is de-escalating risk premium. The dominant theme is STABLE-to-DE-ESCALATING on oil, with inflation cooling as the primary driver of equity gains.

Topics

Key developments

  • July PPI flat, Fed hold probability rises to ~66%, S&P 500 hits record high
  • Oil prices fall ~2% as Hormuz exports near 9M bpd, easing supply fears
  • OpenAI revenue run rate tops $40B ahead of IPO; Anthropic plans $2T IPO
  • Workday surges 17.8% on Silver Lake acquisition talks
  • Reddit to join S&P 500 on Aug 18, shares jump 11% after-hours
  • De minimis tariff loophole closure upheld by US Court of International Trade
  • Cisco falls 8.9% despite earnings beat, as AI networking super cycle already priced in