According to the CNBC Investing Club with Jim Cramer, markets moved higher with the S&P 500 up about 0.75% and the Nasdaq gaining roughly 1.5%, driven largely by strong corporate earnings in the technology sector. However, the rally lacked broad-based participation, as technology stood as the only S&P 500 sector in the green while AI infrastructure stocks traded lower.
Software Stocks Surge on Beat-and-Raise Earnings Quarters
Software stocks rallied significantly after Salesforce and CrowdStrike reported strong earnings. According to the CNBC Investing Club, shares of both companies jumped roughly 20% following their beat-and-raise quarters. Salesforce also announced a key AI partnership with Anthropic, which helped push back against the SaaSpocalypse narrative and lifted the iShares Expanded Tech-Software Sector ETF into positive territory for the year.
The AI Infrastructure Divergence and Market Dynamics
Despite Nvidia’s roughly 10% rally and commentary from CEO Jensen Huang regarding accelerating AI demand, AI infrastructure stocks mostly traded lower on Thursday. According to market analysis from the CNBC Investing Club, one prevailing theory is that short covering in software stocks is prompting investors to sell popular AI holdings.
Apple Schedules Launch Event for Foldable iPhone
Apple has scheduled a product launch event for Sept. 9, marking the first such event hosted by incoming CEO John Ternus, who succeeds Tim Cook. This device represents the second new form factor in as many years following the launch of the ultra-thin iPhone Air.
IDC forecasts that Apple will ship more than 17 million foldable iPhones by 2027, securing a 40% share in a segment previously dominated by Samsung and Huawei. While the device could carry a lofty average selling price exceeding $2,550, IDC predicts Apple will generate more than $45.7 billion in value, accounting for over half of the category’s total value. “It’s an extraordinary outcome for a product expected to be less than two years into its lifecycle,” said Nabila Popal, senior research director at IDC.
Broader Smartphone Market Pressures and Memory Costs
The broader smartphone market faces ongoing headwinds as rising AI demand drives up memory costs. According to IDC, overall 2026 outlook projections were slashed to a 16.7% decline because companies are passing those increased expenses on to buyers. While Apple has not formally raised iPhone prices yet, market expectations point toward potential increases at the September event to protect gross margins against what Cook described on a July earnings call as a “hundred-year flood on memory pricing.” Consumers may lean on carrier trade-in programs from providers like Verizon, AT&T, and T-Mobile, alongside Apple’s Upgrade program, to mitigate sticker shock.
Upcoming Economic Data and Earnings Reports
Wall Street faces another busy earnings slate featuring Marvell Technology, Iren, Affirm, Ulta, Workday, SentinelOne, Gap, and Autodesk. On the economic data front, markets await the University of Michigan consumer sentiment and 1-year inflation expectations. However, the main macroeconomic event on Friday is Federal Reserve Chair Kevin Warsh’s scheduled speech at the Jackson Hole Economic Policy Symposium at 10 a.m. ET, an event historically utilized by Fed chairs to communicate monetary policy frameworks.
Frequently Asked Questions
Why did software stocks rally while AI infrastructure stocks dropped?
According to the CNBC Investing Club, strong earnings beats from Salesforce and CrowdStrike triggered short covering in software stocks, which may have prompted investors to temporarily sell popular AI holdings.
When is Apple’s next product launch event?
Apple scheduled its launch event for Sept. 9, which will be the first hosted by incoming CEO John Ternus.
What is IDC forecasting for the foldable phone market?
According to IDC, Apple is projected to ship more than 17 million foldable iPhones by 2027, capturing a 40% market share and driving overall foldable market growth of 12.6% in 2026 and 18% in 2027.
What is the primary economic event scheduled for the end of the week?
Federal Chair Kevin Warsh is scheduled to speak at the Jackson Hole Economic Policy Symposium on Friday at 10 a.m. ET.
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