Good morning investors! The U.S. and Iran are close to “some sort of arrangement” over the Strait of Hormuz, but the situation remains messy as investors focus on US economy reports.
Today we cover:
Nvidia’s new AI plan
CoreWeave reports
Trusting AI advice
📊 Economy and News
Wall Street Backs Nvidia’s AI Infrastructure Financing Plan
Nvidia CEO Jensen Huang has outlined a major shift in how AI infrastructure will be funded. Instead of relying mainly on tech companies’ own balance sheets, Wall Street firms including Goldman Sachs, BlackRock, Blackstone, KKR, Apollo, and Brookfield plan to raise $500 billion or more from institutional investors to finance new AI data centers and “factories.”
Huang described the systems as long-lived, revenue-generating assets that can be securitized and sold to investors. The firms signed non-binding memos of understanding; details on borrowers, rates, locations, and timing remain limited. Nvidia may backstop up to 25% of loans and will require its system architecture so facilities can be taken over if needed.
The move aims to support the massive capital needs of the AI build-out, projected by McKinsey to reach $7 trillion globally by decade’s end. Executives acknowledged risks of excesses and pullbacks while comparing the opportunity to earlier financial innovations such as mortgage-backed securities.
Global hits:
Indian government bonds slip as oil prices rise.
Brazil inflation slows in July, returns to central bank target range.
India’s net direct tax revenue climbs 23% to 8.1 trillion rupees.
More US news: US power demand to reach new highs through 2027. In other news, US auto loans hit record high in second quarter. Elsewhere, US household debt falls by $13 billion in second quarter. Furthermore, Trump floats possible legal challenge to New York tax on luxury second homes. Lastly, mortgage credit availability rises to highest level since 2022, yet U.S. existing home sales decline for second month in July.
Reminder: CME Group is partnering with Silicon Data to introduce two compute futures contracts on Oct. 5, pending regulatory approval.
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📈 Stocks
S&P 500 7,728.20 (-0.32%)
DJIA 53,791.85 (-0.34%)
NASDAQ 17,918.99 (-0.61%)
BRENT CRUDE 88.16 (+1.19%)
* Prices as of Mar 3rd, 12:20 AM UTC
CoreWeave stock jumped about 15% in extended trading after the AI infrastructure provider posted stronger-than-expected second-quarter results.
Revenue reached $2.58 billion (vs. $2.56 billion expected), up 112% year over year. Adjusted loss per share was $1.03 (better than the $1.20 loss forecast). Net loss widened to $626 million from $290 million a year earlier.
The company’s revenue backlog stood at $104 billion at quarter-end (excluding more than $25 billion in new third-quarter commitments). It also reported 1.5 gigawatts of active power.
Key deals in the quarter included an additional $21 billion commitment from Meta, a multi-year agreement with Anthropic, and a $6 billion commitment from Jane Street. CoreWeave carries $35 billion in debt to fund Nvidia GPUs and other equipment and remains unprofitable while racing Amazon, Google, and Microsoft to expand AI data centers.
Interesting: Riot Platforms strikes deal with Anthropic as bitcoin miners shift focus to AI infrastructure.
Jazz Pharmaceuticals to acquire Actio Biosciences for $820 million.
GM reaches up to $4.5 billion parts deal designed to avoid supply chain troubles.
Surprising: Manus to return as independent company after China forced Meta to unwind $2 billion deal. In other news, Target appoints its first chief AI officer as big retailers bet on AI. Lastly, JPMorgan Chase has signed on as the Olympic Games’ first-ever global banking partner in a nine-figure deal, estimated at more than $200 million per four-year cycle.
💵 Personal Finance
AI Gives Solid Financial Advice—If You Ask the Right Questions
Half of Americans now turn to AI for financial guidance, yet little was known about the quality of that advice—until a new MIT Sloan study examined it closely.
Researchers led by assistant professor Taha Choukhmane tested recommendations from leading large language models. They found that following AI advice generally improves outcomes: people save more during their working years, invest heavily in diversified stock funds, and gradually reduce equity exposure after age 45. The result is larger savings buffers for most adults over 30.
The guidance is not perfect. AI often relies on simple rules of thumb and struggles to adjust when circumstances change. After a job loss, for example, it tends to recommend cutting spending too aggressively, even when savings are available. It also lets portfolios drift instead of actively rebalancing them.
Prompt quality makes a clear difference. Everyday questions produce decent results, but carefully structured “academic” prompts—those that supply full financial details, life-cycle assumptions, and clear economic conditions—yield noticeably better advice on spending and saving.
Advice also varies by the user. Prompts written by men, more financially literate individuals, or people with prior AI experience led to higher equity allocations and saving rates. Over a lifetime, these differences compounded into roughly 4–6% less wealth near retirement for women and less experienced users. Part of the gap stemmed from how people phrased questions; part reflected the model responding differently to the same prompt based on perceived gender.
For consumers, the practical takeaway is clear: treat AI as a useful, low-cost complement to human advisors, and invest effort in clearer prompts grounded in life-cycle planning. For financial firms, the finding is equally important—AI is already recommending specific products and providers, reshaping how customers discover them.
Overall, the research suggests AI can democratize sound financial guidance. Its value rises sharply when users learn to ask better questions.
💰 Be a Better Investor
“When money realizes that it is in good hands, it wants to stay and multiply in those hands.”
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