AI Infrastructure Surge Lifts Markets as Inflation Cools

The rally was spearheaded by a wave of momentum in the artificial intelligence sector. CoreWeave delivered strong quarterly results, signaling sustained demand for the hardware underpinning generative AI. This performance rippled across the industry, driving significant gains for data center operators IREN and Applied Digital, while chip giants Nvidia and Micron Technology also saw their valuations climb.

Robert Pavlik, a senior portfolio manager at Dakota Wealth, noted that the benign inflation trend has effectively neutralized fears of an immediate rate hike. While domestic economic indicators provide a clear tailwind for tech equities, broader stability remains elusive. Geopolitical friction continues to cast a shadow over global markets, particularly as diplomatic channels between the U.S. and Iran remain blocked amid persistent shipping attacks.