Wall Street: On the Nasdaq, "good" is not automatically good enough
US inflation is cooling, which reduces the pressure on yields. In contrast, the Nasdaq remains under pressure: figures above expectations have long since been insufficient.
On Wall Street, the Dow Jones opens trading favorably as producer prices for July hint at further cooling of inflation. Combined with more moderate consumer prices and a weak job market in July, this pressures returns and reduces the risk of the Fed raising interest rates in September. However, the picture at the Nasdaq is different.
Good numbers are not automatically good enough here. Cisco, Coherent, and Cerebras beat expectations with better outlooks, yet they are still sold. Cisco even mentions a "Networking Supercycle," after product orders rose 35 percent and hyperscalers alone placed over $4 billion in AI contracts. Coherent benefits massively from the shift of AI data centers from copper to optical connections and provides its own outlook exceeding expectations.
Outside the US, Lenovo's 43 percent sales jump and 98 percent growth in infrastructure business make a headline, while Birkenstock raises its yearly outlook for sales growth and EBITDA. Analyst JPMorgan raises Microsoft's price target to $625, seeing AI as the central driver of growth acceleration for Azure and Microsoft 365.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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