Alan Greenspan would have been proud. Chairman Warsh gave nothing away at yesterday’s post meeting press conference.
Alan Greenspan would have been proud. Chairman Warsh gave nothing away at yesterday’s post meeting press conference. We all got our first real taste of the new enigmatic, sphinxlike Fed, and apparently it’s good enough for the market this morning. Futures are racing higher, now that we have at least a little direction on interest rates. Moreover, observers are not daunted by yesterday’s quarter point move or by the prospect of another by the end of the year.
Now turning our eyes forward, the first setup in view is somewhat complex. It revolves around CRWV and NBIS. News hit the tape this morning that NBIS raised its GPU prices by 20%, on four-year-old chips, bringing into question the criticism of AI infrastructure firms overestimating the useful life of their hardware. The whole AI infrastructure sector moved higher in the premarket — until about 7 a.m., when CRWV announced a $3 billion convertible notes offering and a 35 million share offering program. CRWV fell from up +$6 vs. yesterday’s close to down $1.50, a swing of nearly $8, all before the bell.
Other second-string players in the space, however, are maintaining their gains from the NBIS news. The downdraft in CRWV may serve to keep these smaller players in range for agile traders, giving them opportunity to engage while prices are close to the support established in the past couple of days. Watch our trading board as we name the names.
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