Today’s Stock Market in 2-Minutes

By Alex Financials

Published: August 12, 2026

U.S. Stocks Get a Boost From Softer Inflation

Wall Street is starting Wednesday, August 12, on firmer ground after a closely watched inflation report gave investors another reason to believe the Federal Reserve may not need to raise interest rates in the near term.

The U.S. Consumer Price Index increased 0.1% in July, according to the Bureau of Labor Statistics, following a 0.4% decline in June. Over the past 12 months, the CPI increased 3.4%. (Bureau of Labor Statistics)

The report was broadly in line with expectations and helped ease some of the concern that rising energy prices and geopolitical tensions could reignite inflation.

Reuters reported that U.S. stocks were moving higher, with the Nasdaq gaining about 0.65% in early trading. Treasury yields also moved lower as investors reassessed the outlook for monetary policy. (Reuters)

For investors, the message is relatively straightforward: inflation remains above the Federal Reserve’s 2% target, but July’s data does not appear to create an immediate reason for policymakers to become more aggressive.

That is particularly important for growth stocks, whose valuations are highly sensitive to interest rates.

AI Stocks Take Center Stage as CoreWeave Reports Huge Backlog

The biggest individual stock story today is artificial intelligence infrastructure.

Shares of CoreWeave ($CRWV) surged after the AI cloud company reported another quarter of explosive growth and revealed a revenue backlog of approximately $104 billion as of June 30. The company also said it had secured more than $25 billion in additional net new customer commitments. (SEC)

CoreWeave reported second-quarter revenue of approximately $2.58 billion, more than double the year-earlier figure. The company also raised its outlook as demand for AI computing capacity remains extremely strong. (MarketWatch)

The company expects third-quarter revenue of approximately $3.45 billion to $3.6 billion and raised its full-year revenue outlook to between $12.4 billion and $13.2 billion. (MarketWatch)

The most important takeaway may not be the quarterly revenue number. It is the continued willingness of customers to commit enormous amounts of capital to AI infrastructure.

CoreWeave’s business is closely tied to demand for Nvidia’s ($NVDA) GPUs, making the results another data point for investors trying to determine whether the massive AI infrastructure spending cycle can continue.

Reuters reported that CoreWeave shares gained more than 20% and that several analysts raised their price targets following the report. Other AI infrastructure names, including Dell Technologies ($DELL), Applied Digital ($APLD) and IREN ($IREN), also moved higher. (Reuters)

Super Micro Computer Adds More Fuel to the AI Rally

Super Micro Computer ($SMCI) is providing another major boost to the AI trade.

The company reported fiscal fourth-quarter adjusted earnings of $1.70 per share and revenue of approximately $11.1 billion. While revenue was slightly below some analyst expectations, profitability and the company’s outlook were considerably stronger than anticipated. (Barron’s)

The company’s gross margin jumped to roughly 17.6%, significantly above its previous guidance. Super Micro also reported more than $60 billion in new orders during the quarter, contributing to a record backlog entering fiscal 2027. (Barron’s)

Even more significant was its forward guidance.

Super Micro expects first-quarter fiscal 2027 revenue of between $14.5 billion and $15.5 billion, well above the roughly $11.8 billion consensus estimate cited by MarketWatch. (MarketWatch)

The company expects full fiscal-year 2027 revenue of approximately $65 billion to $72 billion.

The reaction shows that investors are increasingly rewarding companies that can demonstrate actual financial results from the AI boom rather than simply announcing AI-related initiatives.

For the broader market, the results from $CRWV and $SMCI strengthen the argument that AI spending remains a major corporate investment cycle.

The Fed Remains the Market’s Biggest Macro Question

Today’s CPI report does not eliminate uncertainty surrounding the Federal Reserve.

Inflation at 3.4% remains well above the Fed’s 2% target, meaning policymakers still have work to do. However, the relatively modest monthly increase in consumer prices reduces the immediate pressure for another rate hike.

Reuters reported that money markets were pricing roughly a 50% probability of a rate hike, illustrating just how divided investors remain over the Fed’s next moves. (Reuters)

This creates an unusual market environment.

Stocks are trading near record levels, corporate earnings remain strong and AI investment is accelerating. At the same time, inflation is still elevated and geopolitical risks remain significant.

The next major question for investors is therefore not simply whether inflation is falling. It is whether inflation can continue moderating without economic growth deteriorating.

A combination of slower inflation, resilient earnings and stable employment would provide an attractive backdrop for equities.

Oil and the Iran Conflict Remain a Major Risk

While inflation provided some relief, geopolitical risk has not disappeared.

Investors continue to monitor the conflict involving the United States and Iran, along with disruptions to shipping routes in the Middle East.

Reuters reported that U.S.-Iran talks remained deadlocked while investors continued watching attacks involving shipping in the region. Oil prices moved lower in global trading despite the geopolitical risks, partly reflecting concerns about future demand. (Reuters)

The situation remains important because sustained disruptions to energy supplies could quickly reverse some of the progress on inflation.

Higher crude prices would increase transportation, manufacturing and energy costs throughout the economy. That could put renewed pressure on consumer prices and complicate the Federal Reserve’s policy decisions.

In other words, today’s softer CPI number is positive, but investors cannot assume the inflation story is permanently solved.

What Investors Should Watch Next

The market’s reaction today is being driven by three interconnected themes: inflation, interest rates and AI earnings.

The CPI report is giving investors some relief on monetary policy. Meanwhile, CoreWeave and Super Micro are reinforcing the case that AI infrastructure spending remains exceptionally strong.

That combination is helping technology stocks outperform.

But valuations remain an important consideration. The stronger AI companies perform, the more investors must determine whether future earnings can justify the expectations already reflected in their stock prices.

The market is also vulnerable to a reversal in oil prices or a renewed escalation in the Middle East.

For now, however, the balance is favorable. Inflation did not come in hotter than expected, AI companies are reporting powerful demand and major indexes are recovering from recent weakness.

Bottom Line: AI and Inflation Drive the August 12 Stock Market

The most important stock market news today is that investors are receiving positive signals from both the macroeconomic and corporate sides.

July inflation increased only 0.1% month over month, easing some pressure on the Federal Reserve. (Bureau of Labor Statistics)

At the same time, CoreWeave ($CRWV) and Super Micro Computer ($SMCI) delivered powerful evidence that spending on AI computing infrastructure remains one of the strongest growth themes in the market. (Reuters)

The combination has helped push technology stocks higher and could keep AI-related shares in focus throughout the remainder of the week.

Still, investors should keep watching three variables closely: Federal Reserve rate expectations, oil prices and corporate AI spending.

If inflation continues to cool while earnings remain strong, the current stock market rally could have additional room to run. If energy prices surge again or inflation proves stubborn, the Fed could once again become the market’s biggest source of uncertainty.

For now, the bulls have the stronger argument.

Sources

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