Inflation moderated as Intel and Nvidia fueled the AI trade in last week's market
No surprises on inflation and new financing developments in the artificial intelligence trade drove the record-breaking action on Wall Street last week.
TL;DR
- The S&P 500 and Nasdaq posted their third straight winning weeks, with the S&P 500 reaching a record above 7,800.
- Cooler inflation reports, including the Consumer Price Index and Producer Price Index, eased concerns about the Federal Reserve raising interest rates in September.
- Intel announced a $20 billion stock sale to fund its AI future, signaling management's confidence in the sector.
- Nvidia partnered with six large asset managers on a $500 billion financing initiative to make AI compute an investable asset class.
- Intel shares rose about 1% and Micron shares increased 11% for the week, while Nvidia shares gained 0.5%.