Yesterday, the big announcement between Nvidia (NVDA) and the largest financial institutions in the nation didn’t move the needle much for NVDA. Still, it did wonders for banks and especially private equity shares, which dominated yesterday’s session.

There were some highly anticipated earnings after the close: 

Optical names, including Lumentum (LITE), had been under the gun, awaiting the administration's final word on a ban on Chinese components. I would like to see the ban, but lately it's become a distraction.  The earnings report and guidance were phenomenal, and perhaps investors will start looking beyond any potential ban.

Neocloud stocks, like CoreWeave (CRWV), have been under pressure since SpaceX (SPCX) announced it's also getting into the game. Maybe this hurts the smaller pure-plays, but for now, the sky is the limit. All of this is good news for the artificial intelligence (AI) trade, as the bottlenecks provide insight into the overall buildout.

Hotline stock Velo3D (VELO) enjoyed the biggest initial surge of all the reports in after-hours trading. NVDA’s proxy Super Micro Computer, Inc (SMCI) posted a record backlog.

Inflation Data

Let's hope this morning’s inflation data can stave off Fed hawks and all the other establishment types looking to derail Fed Chair Kevin Warsh before he’s even had a chance to pull off anything substantial. Plus, we do not need higher rates on Main Street.

Goldman’s Estimates

Today’s Session

CPI was in line with consensus, and while the initial reaction was a big air pocket for stocks (naughty algorithms), this chart (below) does not scream runaway inflation.

This morning, Nebius (NBIS) followed rival CoreWeave (CRWV) with a monster earnings report. The notion that GPU rental rates keep rising and chips are being contracted much further out is a huge deal for the entire AI story.