What to Know

  • Contained July CPI data helped keep the September Fed-hold trade alive, giving technology stocks room to rebound.
  • Nasdaq-100 futures rose 0.9%, leading S&P 500 futures higher by 0.4%, while Dow futures climbed 144 points.
  • At 13:39 GMT, the Nasdaq Composite was trading near 26,473.72, with the S&P 500 higher shortly after the opening.
  • CoreWeave more than doubled revenue from a year ago, posted a 5% adjusted operating margin ahead of expectations and lifted its outlook with near-term capacity essentially sold out.
  • CoreWeave traded at $110.96 at 13:39 GMT, up $20.64, or 22.85%, after gapping above major technical levels.
  • Super Micro raised its first-quarter forecast above Wall Street estimates, citing record orders and a growing customer base for AI-ready servers.
  • July headline CPI rose 0.1% from the prior month, with the annual rate at 3.4%; core CPI increased 0.2% on the month and 2.5% year-over-year.
  • Fed-funds futures showed about a 58% probability that the central bank holds rates at the September meeting, up from 45% a week ago.
  • Technical traders are watching 26,473.72 on the Nasdaq Composite and 7,745.92 on the S&P 500 as near-term pivot levels.

CPI and AI Earnings Deliver a Timely Boost for Tech

The Nasdaq found support as two of the market’s biggest themes, interest-rate expectations and artificial intelligence spending, moved in the same direction for growth-stock buyers. July inflation data came in contained enough to preserve the argument that the Federal Reserve may avoid a September rate increase, while earnings updates from CoreWeave and Super Micro offered evidence that the AI infrastructure buildout is still translating into revenue, orders and capacity demand.

The combination mattered because technology shares have been sensitive to both valuation risk and earnings durability. When inflation pressures appear less threatening, investors tend to become more comfortable with longer-duration growth stocks, particularly companies tied to cloud computing, data centers, chips, memory and networking. At the same time, the AI trade needs confirmation that spending is not only concentrated in headline chip demand but is also reaching the broader infrastructure chain. Wednesday’s market action reflected both sides of that equation.

Nasdaq-100 futures were up 0.9%, outperforming S&P 500 futures, which rose 0.4%, while Dow futures added 144 points. The stronger bid in technology showed that traders were responding most directly to reduced rate pressure and stronger evidence of AI infrastructure demand. At 13:39 GMT, the Nasdaq Composite was trading near 26,473.72, while the S&P 500 was higher shortly after the opening.

CoreWeave Signals Capacity Demand Is Outrunning Supply

CoreWeave was one of the session’s main catalysts after more than doubling revenue from a year earlier, reporting a 5% adjusted operating margin ahead of expectations and raising its outlook. The company also indicated that near-term capacity was essentially sold out, a signal that demand for cloud computing resources tied to AI workloads remains strong. For market participants, that message was important because it suggested that AI spending is not merely a long-term narrative but an active source of revenue today.

The stock traded sharply higher, reaching $110.96 at 13:39 GMT, up $20.64, or 22.85%. The move followed a powerful technical gap through several levels watched by chart-focused traders, including the 50-day moving average at $91.09, the 200-day moving average at $93.25 and a three-month 50% level at $99.40. Those areas are now being viewed as potential support zones if the stock’s momentum cools.

Some technical traders are watching whether CoreWeave can sustain enough upside momentum to challenge the last two main tops at $122.00 and $132.15, along with the May 6 top at $138.25. A move into those levels would suggest that buyers are continuing to price in the company’s capacity shortage and backlog strength. Failure to build on the gap, however, could encourage short-term profit-taking, especially after such a sharp single-session advance.

Super Micro Reinforces AI Server Demand

Super Micro added to the positive tone after raising its first-quarter forecast above Wall Street estimates. The company pointed to record orders and a growing customer list for AI-ready servers, reinforcing the view that demand is not limited to cloud capacity providers alone. While CoreWeave offers computing power to customers, Super Micro supplies the hardware that fills data centers, making the two companies important indicators at different points of the same infrastructure chain.

Super Micro’s stock was up 9% before the opening, reflecting investor confidence that AI server demand remains strong. The company’s outlook helped broaden the rally beyond a single earnings reaction, as traders looked for confirmation that enterprise and cloud customers are continuing to invest in systems that can support AI workloads. That matters for the broader Nasdaq because the AI trade has been strongest when investors see demand moving across the supply chain rather than concentrating in only one company or one component category.

The bid also spread into related technology names. Dell and Micron were both higher in premarket trading, Cisco followed, and Nebius rose sharply. The broader participation across chips, memory, networking and cloud was notable because it suggested that investors were buying the AI infrastructure theme more broadly. Intel also expanded its stock offering to $20 billion, with analysts treating the raise as a commitment to its foundry roadmap rather than an immediate warning sign.

Inflation Data Keeps the September Hold Case Alive

The July CPI report gave technology investors the macroeconomic cover they needed. Headline CPI rose 0.1% from the prior month, while the annual rate stood at 3.4%. Core CPI increased 0.2% on the month and 2.5% year-over-year. Both annual readings eased slightly from June, which helped reduce the immediate pressure on the Federal Reserve to tighten policy further at the September meeting.

Fed-funds futures reflected that shift. Markets showed about a 58% probability that the central bank holds rates steady at the September meeting, up from 45% a week ago. That change in expectations does not mean policy has turned dovish, but it does preserve the no-hike case that growth-stock investors were looking for after last week’s weak payrolls report.

The Federal Reserve remains divided. Three policymakers voted for a rate increase at the last meeting, and another round of inflation data will arrive before September. As a result, traders are not treating the CPI release as a final verdict. Instead, the market reaction shows that the data was good enough to keep the hold scenario alive, which was sufficient to bring buyers back into the Nasdaq after pressure on major technology names earlier in the week.

Nasdaq Technical Levels Remain in Focus

For the Nasdaq Composite, the key near-term reference point is 26,473.72. Based on recent price action, technical traders are treating that level as a minor pivot that may determine whether buyers can extend Wednesday’s momentum. A sustained move above 26,473.72 would indicate that buyers remain active and could open the door to a test of the recent minor top at 26,739.00.

If the Nasdaq Composite overtakes 26,739.00 with conviction, traders may look for a test of the June 16 main top at 26,788.62. That level stands as the last resistance before the record high at 27,190.21. A breakout through these levels would strengthen the view that rate relief and AI earnings momentum are combining into a broader technology advance.

On the downside, failure to hold 26,473.72 as support would shift attention to the minor bottom at 26,208.43. A break below that level would change the minor trend to down and shift short-term momentum toward sellers. That makes the pivot especially important for traders trying to distinguish between a one-day relief rally and a more durable breakout attempt.

S&P 500 Watches Its Own Breakout Setup

The S&P 500 also traded higher shortly after the opening, with chart watchers focused on a minor pivot at 7,745.92. A sustained trade above that level could create the upside momentum needed to challenge the record high at 7,793.68. If buyers can push through that area, some market participants would view it as a potential trigger point for additional upside acceleration.

If the index cannot hold 7,745.92, the setup becomes less constructive. Sellers could then attempt to press the market toward the minor bottom at 7,698.15. Taking out that level would change the minor trend to down and shift momentum to the downside. For now, however, the improvement in technology sentiment is helping the broader index remain firm.

The S&P 500’s reaction is important because it shows whether the Nasdaq’s strength is spreading into the wider equity market. A narrow technology rally can still lift index futures, but a broader move across sectors tends to give investors more confidence. Wednesday’s early tone favored the bulls, but the durability of the move depends on whether buyers can hold the pivots and turn early strength into sustained demand.

What Traders Are Watching Next

Market participants are watching whether the Nasdaq can break through an area that has capped gains several times. The index has failed four consecutive times at last week’s high, making Wednesday’s mix of rate relief and AI demand one of the stronger setups buyers have had for a breakout attempt. The key question is whether the combination of contained inflation and stronger AI infrastructure earnings can attract enough follow-through.

The breadth of the AI bid may be the most important signal. CoreWeave and Super Micro were the headline movers, but the broader lift in Dell, Micron, Cisco and Nebius suggests that investors are looking at the entire data-center ecosystem. If that continues, the rally may carry more weight than a move driven by a single mega-cap or a narrow group of chip stocks.

At the same time, the policy backdrop remains unresolved. The CPI data did not remove all inflation risk, and the Federal Reserve has not committed to a pause in September. Another inflation reading will arrive before the meeting, and policymakers remain split. That means technology investors may still face volatility if incoming data challenges the hold narrative. For now, though, the Nasdaq has the combination it needed: inflation that did not force a hawkish repricing and AI earnings that showed demand is still turning into real business activity.

Frequently Asked Questions (FAQs)

Why did the Nasdaq rise after the CPI report?

The Nasdaq rose because July CPI data was contained enough to keep the September Fed-hold trade alive. Lower perceived rate risk tends to support growth stocks, especially technology companies with earnings expectations tied to future expansion.

What did CoreWeave report that helped technology stocks?

CoreWeave more than doubled revenue from a year ago, posted a 5% adjusted operating margin ahead of expectations and raised its outlook. The company also indicated that near-term capacity was essentially sold out, supporting the view that AI computing demand remains strong.

How much did CoreWeave stock gain?

At 13:39 GMT, CoreWeave traded at $110.96, up $20.64, or 22.85%. The stock also moved above several technical levels, including its 50-day moving average, 200-day moving average and a three-month 50% level.

Why is Super Micro important to the AI trade?

Super Micro builds AI-ready data-center servers, placing it in a key part of the infrastructure chain. Its raised first-quarter forecast, record orders and growing customer base reinforced the idea that demand for AI hardware remains active.

What were the key July CPI numbers?

Headline CPI rose 0.1% from the prior month, with the annual rate at 3.4%. Core CPI increased 0.2% on the month and 2.5% year-over-year, while both annual readings eased slightly from June.

What is the market-implied probability of a Fed hold in September?

Fed-funds futures showed about a 58% probability that the Federal Reserve holds rates steady at the September meeting. That was up from 45% a week ago, reflecting a shift in market expectations after the inflation data.

What Nasdaq level are technical traders watching?

Technical traders are watching 26,473.72 as a near-term pivot for the Nasdaq Composite. A sustained move above that level could support a push toward 26,739.00 and then 26,788.62, while a failure could put 26,208.43 in focus.

What S&P 500 level matters near term?

Chart watchers are focused on 7,745.92 as a minor pivot for the S&P 500. Holding above that level could support a move toward 7,793.68, while failure to hold it could shift attention to 7,698.15.

Does the CPI report guarantee the Fed will hold rates?

No. The CPI report kept the hold case alive, but it did not guarantee a pause. The Federal Reserve remains split, three policymakers voted for a rate increase at the last meeting, and more inflation data will arrive before September.

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