U.S. stocks finished higher Wednesday, driven by a surge in AI infrastructure names after strong quarterly earnings from key players, while bitcoin dropped below $64,000 as July inflation data met expectations. The S&P 500 rose 0.3%, closing near record highs, and the Nasdaq advanced 0.7%, led by companies providing computing infrastructure for artificial intelligence workloads.
The inflation report, which showed headline CPI rising 0.1% monthly and 3.4% annually, matched forecasts. Core CPI increased 0.2% monthly and 2.5% yearly. That aligned with consensus estimates, but analysts said the data did not resolve the Federal Reserve's next policy move. Markets assigned a 44% chance of a September rate hike, down from pre-report expectations amid weaker employment data. A month ago, traders saw only a 30% chance of a pause versus 70% odds for hiking rates, according to CME FedWatch.
AI Infrastructure Stocks Lead Market Gains
The standout performers were companies tied to the buildout of AI data centers. Dell Technologies (DELL), which sells servers and other computing infrastructure used to run AI workloads, surged 9.7% to a record closing high of $484. AI cloud provider Nebius (NBIS) extended its rally to 35%, while fellow neocloud CoreWeave (CRWV) held onto a roughly 20% daily gain. WhiteFiber (WYFI) and Nebius both jumped about 15% after strong Q2 results. WhiteFiber revenue rose 54% to $28.8 million, supported by initial billing at NC-1, its flagship North Carolina data center, with 40 megawatts contracted and potential expansion to 300 megawatts. Nebius revenue surged 454% to $582.3 million, while adjusted EBITDA swung to $236.2 million. Investors welcomed accelerating AI demand, new contracts, and expanding capacity, despite continued net losses and heavy capital spending.
The rally also extended to Asia, where Korea's Kospi jumped 4%, with Samsung and SK Hynix both up about 6%. Super Micro rallied 7.6% on a revenue forecast that topped the highest estimates. Semiconductors and hardware companies feeding the AI boom have become key market movers, as earnings reports increasingly show robust demand for data center infrastructure.
Bitcoin and Crypto Market Reaction
Bitcoin largely sat out the stock market's gains, trading around $63,400 into the close, little changed over the past 24 hours. Earlier in the U.S. session, BTC slid toward $63,000 as a midday check showed it giving up early-day gains. At 12:00 Eastern time, it traded at $63,350, down 1.6% from the session highs before the CPI report. Bitcoin has been trading in a narrow range between $62,000 and $66,000 over the past five weeks, and the inflation data matching expectations did not provide fuel for a breakout in either direction.
Among larger cryptocurrencies, Hyperliquid's native token (HYPE) and Near Protocol's NEAR (NEAR) stood out with more than 4% gains, while Uniswap's UNI (UNI) fell 5%. XRP (XRP) was teetering on the brink of falling below the $1 level, which has been holding since November 2024. The crypto market remains sensitive to macro signals, but the lack of an inflation surprise meant traders focused on ETF flows, liquidity, and derivatives positioning while awaiting Jackson Hole and more inflation data.
Inflation Report in Focus
Wednesday's in-line CPI report avoided the upside surprise that could have rattled risk assets, but analysts said inflation remains too hot to give the Fed an all-clear. Headline inflation at 3.4% remains well above the Fed's target, while energy prices are nearly 15% higher than a year ago, noted Daniela Hathorn, senior market analyst at Capital.com. That should keep inflation front and center after Fed Chair Kevin Warsh stressed the need to prevent elevated prices from damaging the economy.
Hathorn said markets now price roughly 60% odds of no change in September versus 40% for a 25 basis-point hike. For crypto, the report takes an immediate inflation shock off the table without offering much fuel for a breakout. Ryan Lee, chief analyst at Bitget Research, said the print "neither forces a hawkish re-pricing nor delivers a clear dovish catalyst," leaving bitcoin traders to focus on ETF flows, liquidity, and derivatives positioning. Iggy Ioppe, CIO at Theo, argued that keeping rates unchanged still amounts to effective easing given current inflation and labor-market conditions and should support risk assets over the medium term. Both pointed to Thursday's PPI report as the next test for inflation.
Corporate and Tokenization Developments
Several crypto-related companies reported quarterly results, with mixed outcomes. BitGo (BTGO) swung to a loss in the second quarter even as revenue and institutional client activity grew. The crypto custodian announced that CFO Ed Reginelli will leave his role during the coming quarter, though he will stay on to help with the transition. Revenue rose 80% from a year ago to $4.3 billion, driven mainly by digital asset sales, while the company posted a $19 million net loss, compared with $38.3 million of net income a year earlier. Adjusted EBITDA swung to a $4.2 million loss from positive $3 million. BitGo's client count grew 26% to 5,833, while normalized assets on the platform increased 31% to $65.2 billion. The company authorized up to $50 million in share buybacks and said cost cuts should generate about $15 million in annualized cash savings. BitGo shares were 5% lower after the report.
Securitize (SECZ), the tokenization firm best-known for issuing BlackRock's tokenized money market fund BUIDL, reported lower revenue and a wider loss for the second quarter even as activity across its platform picked up. Average tokenized assets under management hit a record $4.3 billion, up 16% from a year ago, while transaction volume jumped 147% to $5.3 billion. Revenue slipped 5% to $14.4 million, while the company posted a $21.7 million net loss, or $2.37 per share. Adjusted EBITDA swung to a $5.5 million loss from positive adjusted EBITDA of $1.8 million a year earlier. Securitize's fund-services business oversaw 663 active funds and $24.3 billion in assets under administration, with the latter down about 20%. Shares were 1.3% lower following the results.
Tokenization stocks were among Wednesday's standouts, with Figure Technology Solutions (FIGR) jumping nearly 9% and Securitize gaining 7.4% ahead of quarterly results. The moves also came ahead of a potentially important regulatory development. The SEC will hold an open meeting Friday as it prepares to propose its first formal rules for crypto businesses. Bloomberg reported Tuesday that the SEC may soon propose an "innovation exemption" for trading tokenized securities, putting companies including Figure and Securitize in focus heading into Friday.
Metals and Macro Signals
Metals climbed ahead of the CPI report, with gold trading at $4,420, up more than 1% over the past 24 hours and 7% this month. Silver rose above $66, gaining more than 2.5% over the past 24 hours and 12% this month. Gold was holding above $4,400 an ounce, near its two-month highs. The rise in metals reflected broader risk-on sentiment and inflation hedging demand. The Dollar Index was trading right at the support of a bullish trendline that has guided its rise from the January low of 95.55. A bounce from this level would signal a continuation of the rally, while a decisive break below it would point to a potential reversal. The CPI report was seen as the key catalyst for the dollar's next move.
Metaplanet's Bitcoin Move
In corporate bitcoin news, Metaplanet shifted 3,881 BTC, worth about $247 million, across several transactions over three hours on Wednesday, per Arkham data. The move went from the company's cold wallets to new addresses it also controls, not to an exchange. Transfers to fresh self-custody wallets do not add to tradable supply the way deposits to an exchange do, so on their own they are not selling. Metaplanet has done this before, moving nearly 5,000 BTC in March in the same pattern, with test transactions followed by larger amounts into new wallets, which analysts read as internal custody reshuffling rather than distribution. Metaplanet bought its roughly 43,000 BTC at an average of about $96,000, so with bitcoin near $63,600, the company is sitting on an unrealized loss of about $1.4 billion, down 34%. Metaplanet has been one of the most aggressive corporate buyers since April 2024, with a stated target of 210,000 BTC.
Looking ahead, traders await the release of PPI data on Thursday, which will provide another measure of inflation pressure. The Fed's Jackson Hole symposium later this month could offer more clarity on policy direction. For now, the market remains stuck in a waiting pattern, with AI stocks providing the main source of momentum and bitcoin confined to its recent trading range.
Source: Coindesk News