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Market Snapshot

📉 Banana Bits

• Japan’s producer prices post their biggest jump since 2014 as BOJ hawks gain confidence.

• Inflation fears push stocks lower while bond yields climb again.

• Musk’s xAI enters the coding race with a new challenger to Anthropic.

• Cr*pto legislation clears a major Senate hurdle after months of delays.

• U.S. consumers continue spending despite rising fuel prices.

Market News

AI Mania Broke the Market Again

The AI trade went full beast mode again, dragging stocks to fresh all-time highs as investors decided soaring oil prices, geopolitical tensions, and inflation risks were somebody else’s problem.

The S&P 500 closed above 7,500 for the first time, powered by chip mania, strong earnings, and a U.S. consumer that apparently still refuses to stop spending.

Nvidia kept levitating toward a nearly $6 trillion valuation, while Cisco jumped 13% after giving upbeat AI infrastructure demand forecasts.

Even Ford Motor Company caught some AI fever, and newly public Cerebras Systems exploded 68% in its IPO debut as Wall Street continued its tradition of throwing money at anything involving semiconductors and the letters “A” and “I.”

Retail sales also helped calm nerves, rising for a third straight month despite higher gas prices fueled by Middle East tensions. Nine of 13 retail categories posted gains, reinforcing the idea that the American consumer may only truly disappear if Wi-Fi does first.

Strategists say investors are leaning into AI because corporate earnings continue to overpower macro fears. Data-center backlogs are growing, AI spending remains relentless, and companies keep proving they can survive inflation, wars, and rate fears with enough cloud revenue and cost-cutting.

Elsewhere:

• Oil prices eased slightly after hopes of diplomacy with Iran improved sentiment around the Strait of Hormuz.

• B*tcoin climbed above $80,000 after U.S. lawmakers advanced a major cr*pto market-structure bill.

• Apple and OpenAI reportedly hit turbulence in their partnership, with legal tensions potentially brewing.

• Boeing got a boost after President Donald Trump said China agreed to buy 200 aircraft.

• Dexcom surged after activist investor Elliott Management disclosed a stake and its influence on the board.

• Hon Hai Precision Industry posted stronger profits as AI server demand remained red-hot.

Peel Take: Markets are back to prioritizing AI growth over macro fears. Strong earnings, resilient consumers, and relentless demand for AI infrastructure pushed the S&P 500 to fresh highs, with Nvidia nearing a $6 trillion valuation. Investors are betting the AI boom still has room to run, though expectations are rising just as fast as stock prices.

What's Ripe

Cisco Systems Inc. (CSCO) 13.4%

• CSCO surged 13% after the networking giant delivered strong fiscal third-quarter results and reminded investors it also has a seat at the AI table.

• The rally pushed the stock further beyond its dot-com-era peak, with shares now up more than 30% this year as Wall Street suddenly remembers that routers, switches, and AI infrastructure all need each other to function.

• Peel Take: Cisco’s rally shows the AI trade is expanding beyond chipmakers into the broader infrastructure ecosystem. Investors are increasingly rewarding companies positioned to supply the “picks and shovels” of AI, proving the boom is creating winners far beyond just Nvidia.

Coinbase Global Inc. (COIN) 5.1%

• COIN climbed 5.1% after the cr*pto industry scored a regulatory win, with a Senate committee advancing a long-awaited bill to clarify how digital assets are regulated in the U.S.

• While the legislation still faces a long road to becoming law, bipartisan support boosted optimism that Washington may finally be figuring out cr*pto, only about a decade late.

• Peel Take: The rally underscores the importance of regulatory clarity for the crypto industry. Investors see the bill as a potential turning point that could legitimize digital assets further and reduce uncertainty for platforms like Coinbase, which have spent years fighting for clearer rules.

What's Rotten

Biogen Inc (BIIB) 6.4%

• BIIB fell 6.4% after investors reacted cautiously to Phase 2 trial results for its experimental Alzheimer’s drug, diranersen.

• While the data showed some promise, the study failed to demonstrate a statistically significant link between higher doses and slower cognitive decline, a reminder that in biotech, “encouraging” is not always enough for Wall Street.

• Peel Take: The selloff highlights how unforgiving biotech investing can be, especially in Alzheimer’s research, where expectations are extremely high. Even mildly positive results may disappoint investors if they fail to deliver clear statistical proof of effectiveness.

Intel Corp. (INTC) 3.6%

• INTC fell 3.6% to $115.93, marking its third straight daily decline after a massive rally that has seen the chipmaker’s shares more than triple this year.

• Even after the pullback, the stock remains one of the market’s hottest AI comeback stories, with investors continuing to bet on Intel’s turnaround and growing role in the semiconductor arms race.

• Peel Take: The decline looks more like profit-taking than panic after Intel’s explosive run higher. The stock’s surge reflects growing investor optimism that Intel can re-establish itself as a serious AI and foundry competitor. However, after tripling in value, expectations are now almost as demanding as the chips themselves.

🧠 Technical Trip

Interview Q&A from Morgan Stanley

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📚 Lesson from the Library

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🦈 Deal Dispatch

M&A, IPOs, And Other Notable Transactions

• Bill Ackman increases his focus on Microsoft amid new opportunities.

• LVMH sells Marc Jacobs to WHP Global and G-III in a new fashion deal.

• Thrive Capital exits part of its Shopify investment with a $100 million sale.

• Cerebras’ IPO turns its CEO into a multibillion-dollar AI bet.

📊The Daily Poll

Previous Poll:

Would you bet on car companies moving deeper into energy storage?

Yes, smart future move: 33.3% // Maybe long term: 37.0% // Feels overhyped: 7.4% // Stick to cars only: 22.3%

Student Success Corner

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Banana Brain Teaser

Previous

In an increasing sequence of 10 consecutive integers, the sum of the first 5 integers is 560. What is the sum of the last 5 integers in the sequence?

Answer: 585

Today

One hour after Yolanda started walking from X to Y, a distance of 45 miles, Bob started walking along the same road from Y to X. If Yolanda’s walking rate was 3 miles per hour and Bob’s was 4 miles per hour, how many miles had Bob walked when they met?

How Would You Rate Today's Peel?

Happy Investing,
Chris, Vyom, Ankit, Mithun, Colin & Patrick

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