Nasdaq Index: CoreWeave and Super Micro Drive Tech Stocks Higher After CPI

CPI and AI Earnings Give the Nasdaq the Combination It Needed

CoreWeave more than doubled its revenue, Super Micro raised guidance above estimates, and the July CPI report came in contained. The Nasdaq is getting both sides of the trade it wanted Wednesday morning. Inflation did not give the Fed a reason to hike in September, and two AI infrastructure companies proved the buildout is still producing revenue, not just promises.

Nasdaq-100 futures are up 0.9%, leading S&P 500 futures higher by 0.4% and Dow futures up 144 points. The bid is going straight to technology because the rate risk faded and the earnings risk delivered.

At 13:39 GMT, the Nasdaq Composite was trading near 26,473.72. The S&P 500 was higher shortly after the opening.

Daily S&P 500 Index (SPX) Technical Analysis

The S&P 500 Index is trading higher shortly after the opening on Wednesday. The first level to watch is a minor pivot at 7745.92. A sustained trade over this pivot could create the upside momentum needed to overcome the record high at 7793.68. This is a potential trigger point for an acceleration to the upside.

The inability to hold the pivot at 7745.92 will be a sign of weakness. If sellers begin to press the market then look for them to go after the minor bottom at 7698.15. Taking out this level will change the minor trend to down and shift momentum to the downside.

Daily Nasdaq Composite (IXIC) Technical Analysis

Based on the price action the past three days, the direction of the Nasdaq Composite (IXIC) on Wednesday is likely to be determined by trader reaction to the minor pivot at 26473.72.

A sustained move over 26473.72 will indicate the presence of buyers. If it creates enough upside momentum then look for an attempt to break out over the recent minor top at 26739.00. Overtaking this level with conviction could lead to a test of the June 16 main top at 26788.62. This is the last resistance before the record high at 27190.21.

If 26473.72 fails as support then look for the selling to extend into the minor bottom at 26208.43. Taking out this level will change the minor trend to down and shift momentum to the downside.

CoreWeave and Super Micro Prove the AI Buildout Is Still Producing Revenue

CoreWeave more than doubled revenue from a year ago, posted a 5% adjusted operating margin ahead of expectations and raised its outlook with near-term capacity essentially sold out. The stock is up 18% premarket. That is not the AI spending story holding up. That is demand outrunning available computing capacity, and the backlog behind it says the problem is getting bigger, not smaller.

CoreWeave gapped three major levels this morning, 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. All three points are new support. Today will be all about this hot stock generating enough upside momentum to challenge the last two main tops at $122.00 and $132.15 and the May 6 top at $138.25. At 13:39 GMT, CoreWeave is trading at $110.96, up $20.64 or +22.85.

Super Micro raised its first-quarter forecast above Wall Street estimates with record orders and a growing customer list for AI-ready servers. The stock is up 9% before the opening. CoreWeave rents out the computing power. Super Micro builds the hardware that fills the data centers. Both companies reported demand at different points of the same supply chain, and both told investors the construction cycle is still accelerating.

Dell and Micron are both higher in premarket. Cisco is following. Nebius is up sharply. The bid is spreading across chips, memory, networking and cloud, which is better breadth than a single-stock Nvidia move. Intel expanded its stock offering to $20 billion. Analysts are treating the raise as a commitment to its foundry roadmap rather than a warning.

CPI Gave the Fed-Hold Trade Room to Breathe

July headline CPI rose 0.1% from the prior month with the annual rate at 3.4%. Core increased 0.2% on the month and 2.5% year-over-year. Both annual readings eased slightly from June. Fed-funds futures now show about 58% probability that the central bank holds rates at the September meeting, up from 45% a week ago.

That shift is what technology stocks needed. The Nasdaq sold off Tuesday because Alphabet and Amazon got hit ahead of the inflation number. Wednesday’s report removed the immediate threat and gave growth-stock buyers a reason to come back.

The Fed is still split. Three policymakers voted for a rate increase at the last meeting, and the next round of inflation data arrives before September. The report did not turn the committee dovish. It kept the no-hike case alive after last week’s weak payrolls report, and for the Nasdaq, that is enough.

What to Watch

CPI and AI earnings landed on the same morning and both favored the Nasdaq. The inflation number kept the September hold trade alive. CoreWeave and Super Micro showed that the AI buildout is producing revenue at the infrastructure level, not just at the chip level. The bid spreading into Dell, Micron and Cisco is the part that matters most because it tells you the market is buying the supply chain, not just two earnings reactions.

The Nasdaq has failed four consecutive times at last week’s high. Wednesday’s combination of rate relief and AI demand gives buyers their best setup to break through. CoreWeave gapping above both its 50-day and 200-day moving averages in one session puts the AI trade on notice that real demand is being priced, and the S&P 500 clearing its pivot opens the path to the record.

More Information in our Economic Calendar.