Welcome to Markets Desk, your midday read on what's moving and why.
Nvidia's bull case is getting louder. Analysts are now floating the possibility of a ten trillion dollar market cap, arguing that demand for the company's graphics processing units remains structurally insatiable as artificial intelligence infrastructure spending accelerates globally. If that thesis holds, the timeline may surprise even optimists.
Shifting to energy and policy, Illinois has joined Ohio in freezing data center tax incentives. Governor Pritzker paused the credits after the state legislature failed to pass his proposal requiring data centers to pay higher electricity rates, shielding ordinary residents from the cost burden of these power-hungry facilities. It's a meaningful signal that the political tolerance for subsidizing big tech infrastructure is thinning.
And in the Persian Gulf, the Strait of Hormuz is showing more life than markets had priced in. With American naval forces shooting down Iranian drones and providing active overwatch, ship traffic through the waterway has recovered more than initial reports suggested, even as ceasefire talks between Washington and Tehran have effectively collapsed. Crude was already under pressure today, and this development complicates the near-term supply narrative further.
That's the tape. Markets Desk, signing off the floor.
