The biggest new development today is the surprise contraction in US employment, which materially reduced expectations for a September Fed hike and pushed global equities and bonds higher. The S&P 500 closed at a record, while the Nasdaq gained 1.3%.
AI-related demand remains visible in memory, cloud infrastructure and data-centre investment. $SanDisk Corp.(SNDK)$, for example, forecast revenue above expectations because of strong memory demand from AI data centres, even though its shares subsequently sold off as investors focused on valuation and expectations.
today’s weak jobs number does not change the structural thesis. Lower Treasury yields actually improve financing conditions for large data-centre and infrastructure investments. $Microsoft(MSFT)$ just completed their new data center facility and remain on track to benefit from these.
Will go for the dip!
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