economy
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%.