AllBankingCommoditiesCryptoEarningsEconomyFedGlobalMarketsPolicyReal EstateTech

Financial News

In-depth reporting and analysis on markets, the economy, and everything affecting your money.

2 results for "AI Infrastructure" in Markets

Clear Search
Morning Brief: SMCI +11% on $250B Deal; S&P Stalls at Valuation Wall
Markets
January 18, 20264 min read

Morning Brief: SMCI +11% on $250B Deal; S&P Stalls at Valuation Wall

A massive $250B US-Taiwan trade pledge reignited the AI infrastructure trade, sending Super Micro Computer (SMCI) surging 11% to $32.66 while the broader S&P 500 stalled at 6,940. Despite strong earnings beats from JPMorgan ($46.8B revenue) and Bank of America (+18% EPS), financial stocks saw muted action, confirming that the "higher for longer" net interest income benefit is fully priced in. The divergence is stark: capital is aggressively rotating from value sectors back into hardware capex plays, even as the S&P 500 trades at a precarious 22.2x forward P/E—significantly above the 20.0x historical average. Elsewhere, ImmunityBio (IBRX) rocketed 40% on revenue data, signaling speculative appetite for organic growth outside the tech complex. Watch the 10-year yield as Fed Chair speculation shifts toward Kevin Warsh; a "hawkish institutionalist" appointment could challenge the valuation premium currently supporting the index.

Weekly Wrap: Small Caps Surge to Records as Yields Stall the S&P
Markets
January 18, 20263 min read

Weekly Wrap: Small Caps Surge to Records as Yields Stall the S&P

The 'everything rally' fractured into a violent rotation this week as the 10-Year Treasury yield climbed to 4.23%, stalling the S&P 500 (-0.38%) but igniting a 2.0% surge in the Russell 2000 to fresh records. The catalyst was twofold: a 'Warsh Premium' pricing into bonds on rumors of a hawkish Fed Chair pick, and a domestic growth trade that favored small caps and semiconductors (Micron +7.8%) over broad tech. While JPMorgan anchored financials with a 7.6% earnings beat, the macro data flashed a hidden warning: Core Retail Sales rose 3.58% YoY, yet unit demand fell 1%—a classic stagflationary signal where revenue growth is purely inflationary. The variant view: the market is mispricing the risk of a trade war, with new tariff threats on Europe (Greenland dispute) largely ignored by consensus. Watch the 4.30% yield level next week; an official Warsh nomination could trigger a repricing that challenges the 6,900 support on the S&P 500, testing the durability of the soft landing narrative.