Hot Wholesale Inflation, Hotter AI Tape

Welcome to the Daily Rip market recap. Wednesday’s session saw the market shrug off some hot inflation data, with the Nasdaq hitting fresh record highs for the 13th straight session. Let’s dive into what moved the tape today, starting with the macro setup.

Producer price inflation came in much hotter than expected, with wholesale prices jumping one point four percent in April—nearly triple the consensus forecast. That’s the biggest monthly gain since March of last year. Year-over-year, headline PPI is up six percent, the highest since December 2022.

Core prices, which strip out food and energy, accelerated sharply as well, signaling persistent inflation pressures, especially in services. Energy prices surged nearly eight percent, with gasoline up over fifteen percent, largely tied to geopolitical tensions around Iran and the Strait of Hormuz. This data keeps the Federal Reserve’s tightening bias firmly in place, with markets now pricing in about a thirty nine percent chance of a rate hike by year-end and little hope for cuts anytime soon.

I. optimism. I.

infrastructure. The networking giant’s stock jumped seventeen percent in after-hours trading after reporting a thirty-seven percent rise in earnings per share and twelve percent revenue growth. Product orders climbed thirty-five percent, with networking gear orders up more than fifty percent.

I. I. demand—not just marketing buzz.

On the downside, operating cash flow fell seven percent, and some service segments were flat or slipping, while a restructuring plan could bring up to a billion dollars in charges. I. story here.

In China tech, Alibaba rallied eight percent despite missing revenue estimates for the quarter. I. product revenue.

I. I. model Qwen converts into paid usage, there’s a clear growth story.

I. hype. com, and Baozun also saw some bullish chatter from retail investors, but that remains Stocktwits community color rather than broad market movers.

I. network tools. - Ford jumped thirteen percent after raising its 2026 EBIT guidance.

I. targets. - Lightwave Logic and Marvell both gained around eight to ten percent on strong updates and price target hikes.

I. cloud deal. - On the downside, AppLovin dropped eight percent after a post-earnings fade resumed.

Looking ahead to tomorrow, keep an eye on initial jobless claims and import-export price data due before the afternoon. Earnings will be busy, with names like Intuitive Machines, Canadian Solar, Virgin Galactic, Workhorse Group, and Applied Materials reporting. These could set the tone for Thursday’s session.

To sum up: inflation remains stubbornly high, keeping the Fed on alert and markets cautious on rate cuts. I. demand continues to fuel tech gains, with Cisco and Alibaba showing how that theme is playing out in earnings.

Watch for more inflation data and earnings tomorrow to see if this balance holds. That’s your Daily Rip market recap. Thanks for listening, and catch you next time on LazyListen.