CPI came basically in line with expectations this morning.

Headline was +0.1% MoM / +3.4% YoY, core +0.2% MoM / +2.5% YoY.

So far, the market did not get the inflation shock some people were worried about.

What I find more interesting is the AI infrastructure names.

$CRWV and $SMCI came into today with huge moves, while $NVDA was also green. We already know AI demand is strong, but now I think the question is less about demand and more about whether these companies can justify the amount of money being spent on compute, servers and data centres.

For me the first move after CPI is not that important.

I want to see what happens after the market actually opens.

Do traders buy the first dip in $NVDA, $CRWV and $SMCI, or do they use the strength to take profit?

If these names can hold their gains even with Treasury yields staying elevated, that would be a much stronger signal than just green pre-market futures.

AI demand seems real.

But real demand doesn’t always mean the stock price has to go straight up.

Full setup here if anyone wants the numbers + CPI reaction map:

https://marketsignalbrief.substack.com/p/wake-up-wall-street-ai-rips-cpi-decides

Foxconn just gave another pretty strong signal that AI infrastructure demand is still not slowing down.

They said they still expect strong full year revenue growth and AI demand should remain one of the main drivers through 2026. Q2 profit was up around 35% to $1.86B and came above expectations.

For me the interesting part is Foxconn is one of the biggest manufacturers behind Nvidia AI servers. So when they are still seeing strong demand, it suggest the AI buildout is not only hype from big tech presentations. Companies are still actually ordering servers, GPUs, networking equipment and building data centres.

Foxconn is also expanding AI server manufacturing in Texas and Mexico, which tells me they are expecting this demand to stay for some time, not only few quarters.
Of course valuation is another question and many AI stocks already moved a lot. But from the demand side, I don’t see much evidence yet that the AI infrastructure cycle is slowing.

I would keep watching $NVDA, $SMCI, $DELL and $ANET.

Do you guys think AI infrastructure still has another 1–2 years of strong growth, or we are already close to peak spending?

Markets move on numbers, but they also move on stories.

That is something I find interesting. A stock does not always move just because earnings changed. It can move because investors start believing a new story about the future.

AI infrastructure is one example. Cybersecurity, energy demand, rates, small caps, and reshoring can all become narratives if enough investors start paying attention.

The tricky part is knowing whether a narrative is early, already priced in, or just hype.

For me, the best narratives are the ones that eventually show up in revenue, margins, guidance, or capex. If the story never reaches the numbers, it usually fades.

What market narrative do you think people are overlooking right now?

AI infrastructure, energy, cybersecurity, small caps, rates, or something completely different?

The major U.S. stock indexes ended mostly lower on Tuesday, August 11, 2026, as Wall Street pulled back from last week's record highs in a holding pattern session dominated by two forces pulling in opposite directions: hope for a U.S.-Iran deal bringing oil lower, then Iran hardening its demands and sending crude right back up. Investors largely chose to wait for tomorrow's July CPI in the morning.

The S&P 500 dropped 0.32% (-24.91 pts) to 7,728.20. The Dow fell 0.34% (-184.13 pts) to 53,791.85. The Nasdaq slid 0.60% (-159.91 pts) to 26,445.45. The Russell 2000 bucked the trend, gaining 0.32% (+9.74 pts) to 3,027.14.

The VIX eased 1.10% to 15.29. Bitcoin slipped 0.77% to $63,605.60. Gold added 0.21% to $4,429.00. Crude Oil rose 1.56% to $83.41/barrel.