What to Know

  • Contained July CPI data helped keep the September Fed-hold trade alive, easing immediate rate pressure on growth and technology shares.
  • Nasdaq-100 futures rose 0.9%, outpacing S&P 500 futures at 0.4%, while Dow futures gained 144 points.
  • At 13:39 GMT, the Nasdaq Composite was trading near 26,473.72, with the S&P 500 also higher shortly after the opening.
  • CoreWeave more than doubled revenue from a year earlier, reported a 5% adjusted operating margin ahead of expectations and raised its outlook with near-term capacity essentially sold out.
  • CoreWeave shares traded at $110.96 at 13:39 GMT, up $20.64, or 22.85%, after gapping above key technical levels.
  • Super Micro raised its first-quarter forecast above Wall Street estimates, citing record orders and a broader customer base for AI-ready servers.
  • July headline CPI rose 0.1% month over month and 3.4% year over year, while core CPI increased 0.2% on the month and 2.5% year over year.
  • Fed-funds futures showed about a 58% probability of no rate change at the September meeting, up from 45% a week earlier.
  • 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.

Nasdaq Buyers Get the Mix They Wanted

The Nasdaq found support as two market drivers lined up in favor of technology stocks: inflation data that did not force a more hawkish Federal Reserve view and earnings signals showing that artificial intelligence infrastructure spending is still converting into revenue. For growth-heavy indexes, that combination matters because high-rate anxiety and earnings skepticism have been the two major pressure points around the technology trade.

Nasdaq-100 futures rose 0.9%, leading broader equity futures, while S&P 500 futures advanced 0.4% and Dow futures added 144 points. The stronger bid in technology reflected a market that saw reduced immediate rate risk and fresh confirmation of demand across AI-related infrastructure. At 13:39 GMT, the Nasdaq Composite was trading near 26,473.72, while the S&P 500 was higher shortly after the opening.

The tone was notably different from the prior session, when pressure on major technology names weighed on the Nasdaq ahead of the inflation reading. With CPI contained enough to leave the September hold argument intact, buyers had room to rotate back toward long-duration growth shares and companies tied directly to the AI capital spending cycle.

CoreWeave Extends the AI Infrastructure Story

CoreWeave became a central focus for technology traders after the company more than doubled revenue from a year ago, delivered a 5% adjusted operating margin ahead of expectations and raised its outlook. The most important message for market participants was that near-term capacity is essentially sold out, suggesting demand for AI computing resources continues to exceed available supply.

That distinction is critical for the AI trade. Investors have been looking for evidence that spending on artificial intelligence is moving beyond broad promises and into actual revenue generation. CoreWeave’s update pointed to demand for computing capacity that is already committed, supporting the view that the infrastructure layer of the AI buildout remains active.

The stock reacted sharply. At 13:39 GMT, CoreWeave traded at $110.96, up $20.64, or 22.85%. The move carried shares above 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. Technical traders now view those areas as new support zones after the gap higher.

On the upside, chart watchers are monitoring whether CoreWeave can build enough momentum to challenge the last two main tops at $122.00 and $132.15, followed by the May 6 top at $138.25. A sustained push into those levels would suggest investors are not merely reacting to one strong earnings update, but repricing the stock around a stronger AI capacity-demand backdrop.

Super Micro Adds Hardware Confirmation

Super Micro added another layer of support to the AI infrastructure narrative by raising its first-quarter forecast above Wall Street estimates. The company cited record orders and an expanding customer list for AI-ready servers, reinforcing demand at the hardware level of the data-center supply chain.

The distinction between CoreWeave and Super Micro is important. CoreWeave rents computing power, while Super Micro builds the server systems used in AI-focused data centers. When both types of companies report strong demand, traders tend to see broader confirmation that the AI construction cycle remains active across multiple points of the supply chain.

Super Micro shares were up 9% before the opening, indicating that investors were willing to reward not only revenue growth stories but also forward-looking order strength. Record orders can be especially significant in the server market because they suggest customers are still committing capital to new infrastructure despite ongoing questions about interest rates, capital intensity and supply constraints.

AI Bid Broadens Beyond Two Names

The technology rally was not limited to CoreWeave and Super Micro. Dell and Micron were both higher in premarket trading, Cisco followed the move, and Nebius rose sharply. That broader participation helped the market interpret the session as more than a single-stock reaction or a narrow earnings-driven bounce.

Breadth matters because the AI trade has often been judged by whether demand is concentrated in a small group of leaders or spreading through the companies that supply memory, servers, networking, cloud infrastructure and related hardware. When multiple parts of the ecosystem rise together, it can indicate that investors are buying the supply chain rather than chasing one isolated earnings surprise.

Intel also drew attention after expanding its stock offering to $20 billion. Market participants treated the raise as a commitment to its foundry roadmap rather than a warning sign. That interpretation helped support the broader technology tone, as investors focused on long-term manufacturing and AI infrastructure ambitions rather than short-term dilution concerns.

CPI Keeps the Fed-Hold Trade Alive

July headline CPI rose 0.1% from the previous month, with the annual rate at 3.4%. Core CPI increased 0.2% on the month and 2.5% year over year. Both annual readings eased slightly from June, giving investors enough evidence to keep the September no-hike case in play.

Fed-funds futures showed about a 58% probability that the central bank holds rates steady at the September meeting, compared with 45% a week earlier. That shift was central to the Nasdaq’s advance because technology valuations are highly sensitive to changes in rate expectations. When the perceived risk of an imminent hike fades, growth stocks often become more attractive to buyers seeking earnings expansion and long-term revenue potential.

Still, the inflation data did not make the Federal Reserve decisively dovish. Three policymakers voted for a rate increase at the last meeting, and additional inflation data will arrive before September. The market’s interpretation was more measured: the CPI reading did not eliminate policy risk, but it avoided giving the Fed a clear reason to hike immediately.

That nuance is important. The Nasdaq did not rally because the rate debate is over. It gained because the latest CPI data kept the hold scenario alive at a time when AI earnings gave investors a fresh reason to re-enter growth and technology shares.

Nasdaq Technical Levels in Focus

Technical traders are watching the Nasdaq Composite pivot at 26,473.72. Based on recent price action, that level is likely to influence the near-term direction of the index. A sustained move above 26,473.72 would indicate the presence of buyers and could create enough upside momentum for an attempt to break above the recent minor top at 26,739.00.

If the Nasdaq Composite can overtake 26,739.00 with conviction, chart watchers would then look toward the June 16 main top at 26,788.62. That level stands as the last identified resistance before the record high at 27,190.21. A move through that zone would likely strengthen bullish sentiment around the index, particularly if supported by continued breadth in AI-linked shares.

On the downside, failure to hold 26,473.72 as support would expose the Nasdaq Composite to a potential slide toward the minor bottom at 26,208.43. Taking out that level would change the minor trend to down and shift momentum back toward sellers. For now, the pivot remains the line that many short-term traders are using to judge whether the CPI-and-AI rally can extend.

S&P 500 Tests Its Own Breakout Path

The S&P 500 also traded higher shortly after the opening, with technical attention centered on a minor pivot at 7,745.92. A sustained move above that level could create the momentum needed to challenge the record high at 7,793.68. For broader equity bulls, that would be an important confirmation that the technology rebound is not isolated from the wider market.

If the index fails to hold 7,745.92, traders would likely watch for selling pressure toward the minor bottom at 7,698.15. A break below that level would change the minor trend to down and shift short-term momentum in favor of sellers. In that scenario, the market could lose some of the confidence generated by the CPI reading and AI earnings updates.

The S&P 500’s reaction matters because a tech-led rally carries more weight when it also supports the broader benchmark. With the Nasdaq leading and AI-linked names drawing buyers, confirmation from the S&P 500 would strengthen the argument that investors are returning to risk rather than simply rotating within technology.

What Traders Are Watching Next

The market now has two key questions. First, can the Nasdaq finally break through last week’s high after failing four consecutive times? Second, can the AI infrastructure bid continue to broaden beyond CoreWeave and Super Micro into chips, memory, networking, cloud and server hardware?

Wednesday’s setup gives buyers their strongest near-term opportunity because it combines rate relief with earnings confirmation. CPI kept the September hold trade alive, while CoreWeave and Super Micro showed that the AI buildout is producing measurable demand at the infrastructure level. The most constructive signal would be sustained breadth across related companies, rather than a rally limited to the strongest individual reports.

For FXCOINZ market coverage, the central takeaway is that technology investors received confirmation on both macro and micro fronts. Inflation did not force a more aggressive Fed outlook, and AI infrastructure companies provided fresh evidence of demand. That does not remove all risk, but it gives Nasdaq buyers a clearer path to test resistance and possibly challenge the next major upside levels.

Frequently Asked Questions (FAQs)

Why did the Nasdaq rise after the CPI report?

The Nasdaq rose because July CPI was contained enough to keep the September Fed-hold trade alive. That reduced immediate rate pressure on growth stocks, while strong AI infrastructure updates from CoreWeave and Super Micro added earnings support.

What was the July CPI reading?

Headline CPI increased 0.1% from the previous month and 3.4% year over year. Core CPI rose 0.2% on the month and 2.5% from a year earlier, with both annual readings easing slightly from June.

How did Fed rate expectations change?

Fed-funds futures showed about a 58% probability that the central bank holds rates at the September meeting, up from 45% a week earlier. The data kept the no-hike case alive but did not make the Federal Reserve decisively dovish.

Why was CoreWeave important for the AI trade?

CoreWeave more than doubled revenue from a year earlier, posted a 5% adjusted operating margin ahead of expectations and raised its outlook with near-term capacity essentially sold out. That suggested strong demand for AI computing capacity.

What levels are traders watching for CoreWeave?

CoreWeave moved above 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. Upside levels being watched include $122.00, $132.15 and the May 6 top at $138.25.

Why did Super Micro support the broader AI story?

Super Micro raised its first-quarter forecast above Wall Street estimates, citing record orders and a growing customer list for AI-ready servers. That reinforced demand at the hardware level of the AI data-center supply chain.

What is the key Nasdaq Composite pivot level?

Technical traders are watching 26,473.72 as the key near-term pivot for the Nasdaq Composite. Holding above that level could support a move toward 26,739.00, while failure could open the door to 26,208.43.

What is the key S&P 500 level to monitor?

The S&P 500 pivot level in focus is 7,745.92. A sustained move above it could point toward the record high at 7,793.68, while failure to hold it could shift attention toward 7,698.15.

Is the Fed now expected to cut rates?

The CPI data kept the September hold case alive, but it did not establish a clear rate-cut outlook. The Federal Reserve remains split, and another round of inflation data is due before the September decision.

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