Nasdaq Futures Climb as CoreWeave and Super Micro Provide a Boost, U.S. Inflation Data in Focus

September Nasdaq 100 E-Mini futures (NQU26) are up +0.71% this morning as stellar earnings from CoreWeave and Super Micro Computer boosted sentiment.

CoreWeave (CRWV) popped over +17% in pre-market trading after the cloud-computing company reported stronger-than-expected Q2 results, raised its full-year revenue guidance, and said its backlog stood at $104 billion at the end of the quarter. Also, Super Micro Computer (SMCI) climbed more than +8% in pre-market trading after the server maker posted stronger-than-expected FQ4 adjusted EPS and gave an FQ1 revenue forecast that crushed Wall Street’s estimates. The results provided further evidence that demand for AI infrastructure remains strong, reigniting enthusiasm for the AI trade.

WTI crude prices wavered on Wednesday as investors continued to assess the prospects for a deal to reopen the Strait of Hormuz. U.S. President Donald Trump claimed the U.S. had “total control over the Hormuz Strait,” as Washington and Tehran adopted tougher stances. Meanwhile, Pakistan said the deadline for a memorandum of understanding between the two sides could be extended.

Investors are now looking ahead to key U.S. inflation data for fresh clues on the path of interest rates.

In yesterday’s trading session, Wall Street’s major indexes ended in the red. AppLovin (APP) slumped about -6% and was the top percentage loser on the S&P 500 and Nasdaq 100 after BofA downgraded the stock to Neutral from Buy. Also, software stocks slid, with Datadog (DDOG) falling over -5% and Adobe (ADBE) dropping more than -3%. In addition, Upwork (UPWK) tumbled nearly -15% after the freelancing platform cut its full-year guidance. On the bullish side, chip and AI infrastructure stocks advanced, with KLA Corp. (KLAC) rising over +4% and ASML Holding N.V. (ASML) gaining more than +3%.

Data from the National Association of Realtors released on Tuesday showed that U.S. July existing home sales fell -1.7% m/m to a seasonally adjusted annual rate of 4.06 million units, compared with expectations of 4.05 million units.

Boston Fed President Susan Collins told the Financial Times in an interview published on Wednesday that she would support a September interest-rate hike if inflation remains high. “I ⁠do see the possibility that economic conditions in the coming months will require tighter ​policy, and ​I ⁠would be prepared to raise rates in ​that context,” Collins said.

Meanwhile, U.S. rate futures have priced in a 51.9% probability of no rate change and a 48.1% chance of a 25-basis-point rate hike at the September FOMC meeting.

Today, all eyes are focused on the U.S. consumer inflation report, which is set to be released in a couple of hours. Economists expect the consumer price index to rise +0.1% m/m in July following a -0.4% m/m drop in the previous month. On an annual basis, headline inflation is projected to ease to +3.4% in July from +3.5% in June. Also, the core CPI, which strips out the more volatile food and energy prices, is expected to rise +0.2% on the month, equating to a +2.5% annual gain, which would mark the smallest annual increase since February. That compares with June’s numbers of no change m/m and +2.6% y/y.

A benign CPI report would strengthen the case for the Fed to stay on hold, pushing Treasury yields lower and equities higher. HSBC economists said they expect July CPI data to show “surprising softness across many core categories, leading both headline and core CPI to undershoot consensus expectations.” At the same time, a hot print would shift the narrative toward stagflation fears, especially after last week’s weak jobs report, sending U.S. stocks lower. The S&P 500 Index is expected to move 0.49% in either direction today, based on 85% of the value of the at-the-money straddle, according to Barchart.

“Investors are increasingly pricing a scenario in which inflation continues to ease, the Fed remains patient, and earnings growth justifies elevated valuations,” according to Daniela Hathorn at Capital.com.

The EIA’s weekly crude oil inventories report will also be released today. Economists expect this figure to be -1.7 million barrels, compared to last week’s value of 2.5 million barrels.

On the earnings front, prominent companies such as Cisco Systems (CSCO), Coherent (COHR), Cerebras Systems (CBRS), and Nebius Group (NBIS) are slated to release their quarterly results today.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.67%, down -0.49%.

The Euro Stoxx 50 Index is up +0.27% this morning, hitting a new record high as investors cheered a slew of positive corporate earnings reports. Defense stocks led the gains on Wednesday, with TKMS (TKMS.D.DX) jumping over +15% after the warship maker raised its full-year guidance. Energy stocks also climbed. In addition, technology stocks advanced, buoyed by renewed optimism surrounding the AI trade following upbeat results from CoreWeave and Super Micro Computer. Limiting gains, luxury and healthcare stocks slumped. Final data released on Wednesday showed that Germany’s annual inflation rate picked up to 2.8% in July, confirming preliminary estimates, while Italy’s annual inflation rate eased to 2.9% last month, less than initially expected. Investors are now awaiting U.S. inflation data for July, due later in the day. In other corporate news, Vestas Wind Systems A/S (VWS.C.DX) surged over +17% after the wind turbine maker posted strong Q2 results and boosted its annual adjusted earnings margin guidance. Also, Balfour Beatty Plc (BBY.LN) climbed more than +7% after the construction group raised its full-year operating profit guidance.

Germany’s CPI and Italy’s CPI were released today.

The German July CPI rose +0.8% m/m and +2.8% y/y, in line with expectations.

The Italian July CPI rose +0.3% m/m and +2.9% y/y, stronger than expectations of +0.2% m/m and +2.8% y/y.

Asian stock markets today closed in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.32%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.83%.

China’s Shanghai Composite Index closed higher today, led by gains in the real estate and tech sectors. Property stocks led the gains on Wednesday. Semiconductor and other AI-related stocks also climbed. Sentiment toward the tech sector improved after U.S. AI infrastructure companies CoreWeave and Super Micro Computer posted upbeat results. Investor attention now shifts to earnings from China’s largest technology companies. Results from Tencent Holdings and JD.com due this week will provide an early indication of whether stronger core businesses can offset the impact of rising AI spending. “Earnings will be the key. Outperformance for the internet sector in July was mainly driven by valuation recovery, but now we are at the point when we should start to focus on earnings again,” said Kinger Lau, chief China equity strategist at Goldman Sachs. Investors are also awaiting China’s money-supply and credit data for July, scheduled for release on Thursday, which will provide further insight into business investment and consumer demand in the world’s second-largest economy. Economists anticipate that credit growth will remain subdued. In corporate news, Galaxy Entertainment rose over +3% in Hong Kong after the company reported an increase in its first-half net profit, driven by strong tourist arrivals in Macau, solid hotel occupancy, and resilient demand across both its gaming and non-gaming offerings.

Japan’s Nikkei 225 Stock Index, which resumed trading after a public holiday, closed higher today, supported by gains in chip and bank stocks. Chip and other AI-related stocks advanced on Wednesday as strong earnings from U.S. tech companies CoreWeave and Super Micro Computer drew investors back into the AI trade. Bank stocks also climbed as Japanese government bond yields rose amid growing expectations for a Bank of Japan interest-rate hike next month. Meanwhile, Mitsubishi UFJ Asset Management has joined Daiwa Asset Management and Amova Asset Management in launching investment trusts focused on super-long Japanese bonds, whose yields now rival those of U.S. Treasuries and German bunds. In corporate news, Rakuten Group tumbled over -13% after the conglomerate reported weaker-than-expected operating profit for the three months ended June. Investor focus is now squarely on Japan’s PPI data for July due on Thursday, after the gauge accelerated a month earlier to its fastest pace in more than three years. The consensus forecast calls for producer prices to accelerate further in July. This would reflect continued price pressures from elevated energy and import costs, further amplified by a weaker yen, according to Lynn Song at ING. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +28.29% to 32.06.

Pre-Market U.S. Stock Movers

CoreWeave (CRWV) popped over +17% in pre-market trading after the cloud-computing company reported stronger-than-expected Q2 results, raised its full-year revenue guidance, and said its backlog stood at $104 billion at the end of the quarter.

Super Micro Computer (SMCI) climbed more than +8% in pre-market trading after the server maker posted stronger-than-expected FQ4 adjusted EPS and gave an FQ1 revenue forecast that crushed Wall Street’s estimates.

Chip and AI infrastructure stocks rose in pre-market trading as stellar earnings from CoreWeave and Super Micro Computer reignited enthusiasm for the AI trade. Sandisk (SNDK) and Marvell Technology (MRVL) were up over +3%, while Micron Technology (MU) was up more than +2%.

Lumentum Holdings (LITE) gained over +7% in pre-market trading after the optical-networking company posted upbeat FQ4 results and issued above-consensus FQ1 guidance. Peer Coherent (COHR) rose more than +5%. Sentiment toward optical-networking stocks got a further boost after Foxconn said it sees optical networking as a future growth driver as AI infrastructure expands and requires more bandwidth.

United States Antimony (UAMY) tanked more than -16% in pre-market trading after the critical minerals producer reported weaker-than-expected Q2 revenue and cut its full-year revenue guidance.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Wednesday - August 12th

Cisco Systems (CSCO), Coherent (COHR), Cerebras Systems (CBRS), Nebius Group (NBIS), Performance Food Group Company (PFGC), Trimble (TRMB), Bio-Techne (TECH), Brinker International (EAT), Liquidia (LQDA), Silicon Laboratories (SLAB), Fervo Energy Company (FRVO), EnerSys (ENS), Andersen Group (ANDG), BETA Technologies (BETA), Octave Intelligence (OCTV), EquipmentShare.com (EQPT), Liftoff Mobile (LFTO), Kontoor Brands (KTB), Madison Square Garden Entertainment (MSGE), Resideo Technologies (REZI), Applied Aerospace & Defense (AADX), StubHub Holdings (STUB), Perpetua Resources (PPTA), Infleqtion (INFQ), AEVEX (AVEX), Kailera Therapeutics (KLRA), Sunshine Silver Mining & Refining Company (SSMR), SELLAS Life Sciences Group (SLS), Pelagos Insurance Capital (PLGO), National Vision Holdings (EYE), ITG, Inc. (ITG), Twenty One Capital (XXI), T1 Energy (TE), ArriVent BioPharma (AVBP), Harmonic (HLIT), STAAR Surgical Company (STAA), Securitize (SECZ), Lumexa Imaging Holdings (LMRI), Alpha and Omega Semiconductor (AOSL), NANO Nuclear Energy (NNE).