Stocks Rallied Facing A Fed Hike Decision, Here's What It Means

David H. Lerner Investing Group Leader Follow Summary Despite hotter-than-expected CPI and PPI, markets rallied as confidence in the Fed's inflation-fighting credibility grew, with investors anticipating a resilient economy. AI-driven growth is powering productivity and job creation, making tech and AI stocks like NVDA and MU relatively impervious to higher interest rates. I expect Q3 earnings to be strong, especially in AI and enterprise software, with recent robust reports from Oracle and other sector leaders supporting continued upside. I'm opportunistically adding both asset-light and asset-heavy Consumer Experience names, while selectively increasing exposure to second-tier AI compute providers. Looking for a helping hand in the market? Members of The Active Investors Forum get exclusive ideas and guidance to navigate any climate. Learn More » Getty Images This Thursday’s PPI and Friday’s CPI were not encouraging inflation-wise How does the resulting price action ending Friday make any sense? Thursday I thought the PPI was pretty much in line, and the markets ripped lower while interest rates This article was written by David H. Lerner 31.96K Followers Follow David H. Lerner is an analyst with a decade of experience utilizing his professional background in software consulting and technology to identify market trends and provide long and short trade ideas. David employs a combination of technical analysis and market psychology to capitalize on narratives for outsized returns. He also utilizes “Cash Management Discipline,” a simple trading style to hedge against the volatility of today’s market climate.He leads the investing group Active Investors Forum where he uncovers actionable trading and investing ideas nearly every day. Other features include: long and short swing trade alerts, daily macro analysis, weekly articles, and chat for community interaction and questions. Learn More. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ORCL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.