Inflation steady, Fed cut odds, AI chips slide

US stock futures dip after the Fed’s preferred inflation gauge, core PCE, rose 2.9% year over year — in line with estimates but still above the central bank’s 2% target. Fed Governor Christopher Waller backed a September rate cut and signaled more easing ahead. Fed Governor Lisa Cook faces a court hearing today as she fights President Trump’s attempt to oust her over mortgage fraud allegations. Marvell Technology (⁠MRVL⁠) sinks on Wall Street after weak guidance and disappointing data center revenue, echoing Nvidia’s (NVDA) report earlier this week. Dell (DELL) also falls on lighter AI server sales and margin pressure, while Affirm (AFRM) jumps on strong earnings and an upbeat outlook.

Takeaways:

• Core PCE inflation holds at 2.9%, keeping Fed cut bets alive

• Fed Governor Lisa Cook’s legal fight with Trump heads to court

• Marvell, Dell earnings show cracks in AI hardware demand

• Affirm rallies on buy now, pay later growth and strong outlook

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