OpenAI Expansion

JPMorgan is offering a measured read on Wednesday’s inflation print, characterizing May’s 4.2% CPI reading as the high-water mark for this cycle, according to Bloomberg. The bank expects the Federal Reserve to hold rates steady at its June 17 meeting, a view that aligns with where markets are currently trading. While the print will leave the Fed “somewhat uncomfortable,” JPMorgan’s chief global strategist at its asset management unit believes the numbers may represent inflation’s peak, offering a cautiously optimistic counterpoint to a morning that has markets on edge.

Oracle (NYSE:ORCL) is set to report Q4 earnings after the bell. The Street is looking for EPS of $1.97 on revenue of $19 billion, a meaningful step up from the $1.70 and $15.9 billion posted in the same period a year ago. Cloud Infrastructure is the number to watch, with analysts projecting a 90.8% year-over-year jump to $5.17 billion, while remaining performance obligations are expected to hit $589.5 billion, up 327%, a figure that reflects the staggering scale of demand Oracle is sitting on thanks in large part to its $300 billion, five-year deal with OpenAI. The report arrives at a delicate moment for the AI trade, with chip stocks under renewed pressure and markets on edge heading into next week’s Fed decision.