CPI Shock: Trump, Oil & Wall Street

● Trump’s CPI Playbook- Lowest in 4 Years

April U.S. CPI Shock: The Secrets of Low Inflation, Trump’s Oil Price Strategy, and Wall Street’s Outlook

This article covers the key points of the April 2024 U.S. Consumer Price Index (CPI) announcement, the reasons behind the sharp decline in gasoline prices, Trump's oil price band strategy, and the market patterns analyzed by Goldman Sachs.
It details how oil prices affect inflation, U.S. shale companies, and consumer burdens, and how all these trends will impact the global economic outlook for 2025-26.
Based on the analysis of Trump and Goldman Sachs, we will break down the future prospects for international oil prices, U.S. inflation, and key energy market keywords step by step.

April 2024 CPI Announcement and Market Shock

Details: U.S. CPI increase, changes in market expectations, impact of gasoline prices

The U.S. annual CPI (consumer price inflation) recorded 2.3% in April 2024, significantly lower than expected.
This is the lowest figure since early 2021, signaling the full-fledged "slowdown in inflation."
The main culprit for this rapid low inflation is the sharp drop in gasoline prices.
A 12% year-on-year decrease significantly suppressed overall prices in the energy sector.
The market and financial sector are paying attention to the sustainability of low inflation, putting pressure to adjust policy interest rates and investment strategies.

The Hidden Story of the Sharp Decline in Gasoline Prices

Details: U.S. energy market, supply and demand variables, external environmental factors

The direct cause of the gasoline price decline is the slowdown in global demand and increased U.S. domestic production.
In particular, the expansion of shale oil production, progress in China-U.S. trade negotiations, and easing concerns about economic recession are reflected.
The impact of OPEC+'s production increase and supply-demand adjustments is also present.
It has been proven once again that 'international oil prices' directly curb inflation in the energy market.

Trump’s Oil Price Band Strategy: ‘Killing Two Birds with One Stone’ for Consumers and Shale Companies

Details: Analysis of Trump's social media, preferred WTI price range, policy implications

Goldman Sachs analyzed 16 years of Trump's energy-related SNS big data.
Trump showed the most positive attitude when the price of crude oil (WTI) was $40-50 per barrel.
If WTI is above $50, he demands lower oil prices on social media, and conversely, if it falls below $30, he sends messages to "protect U.S. shale companies" and defend prices.
The two goals of 'easing consumer burden' and 'protecting the domestic energy industry' lead to an oil price band strategy.
Goldman Sachs calls this range 'Trump's crude oil sweet spot'.

Goldman Sachs’ Market Outlook and Oil Price Forecast

Details: Break-even point of the U.S. shale industry, 2025-26 WTI forecast, policy implications

Goldman Sachs diagnosed the break-even point of the U.S. shale industry at $51 per barrel.
The WTI price is forecast at $56 in 2025 and $52 in 2026.
Trump's willingness to intervene goes beyond simple remarks and manifests as policy changes such as regulatory easing, production expansion, and executive orders.
The current WTI oil price is around $63, but if Trump becomes president, there is a high possibility of pressure matching his oil price band.

Current Global Market Reactions and Outlook

Details: U.S./China economy, oil price volatility, long-term inflation outlook

Recently, WTI fell to the $60 level and then rebounded in the short term due to expectations of U.S.-China tariff negotiations.
Trump's will to intervene in the market, coupled with global supply and demand adjustments, is highlighting expectations for the downward stabilization of international oil prices after 2025.
It remains to be seen whether this trend will be the driving force behind low U.S. inflation, i.e., tight management of consumer prices.
In the future global economic outlook, oil prices, inflation, and U.S. financial policies are intertwined, foretelling long-term repercussions.

< Summary >

U.S. CPI annual 2.3% in April 2024, lowest since 2021
Gasoline prices plummeted more than 12%, leading to low inflation
Trump prefers WTI oil prices in the $40-50 range, caring for both shale companies and consumer burdens
Goldman Sachs forecasts oil prices at $52-56 in 2025-26 based on Trump's 'crude oil sweet spot'
The market is paying attention to low U.S. inflation, global inflation, and energy price prospects

[Related Articles…]

How far will U.S. inflation stabilize?
Go to the latest analysis on U.S. inflation
Global oil market, a major change scenario in 2025
Read the 2025 outlook for the global oil market

*YouTube Source: [Maeil Business Newspaper]

– 4년 만에 최저치를 기록한 CPI 발표에 숨겨진 트럼프의 전략 | 불앤베어 포커스

● AI-Fueled Bitcoin Mining: Undervalued Stock Poised to Explode?

<h4>Under $10, AI's Most Undervalued Stock? In-Depth Analysis of Riot Platforms</h4>


<h3>Key Points of This Article</h3>
- AI investment sentiment reversal, spotlight on undervalued stocks
- US stock market rally and strategic changes in AI and Bitcoin mining companies
- Riot Platforms' background in AI transition and future growth strategy
- Recent earnings review and strong buy opinions from Wall Street
- Positioning as a hidden beneficiary of AI data center growth
Aren't you curious? We've summarized investment points, related market issues, and US market outlook all at once.


<h3>1. Initial Market Atmosphere: AI Fervor Slowing Down? No!</h3>
- In early 2024, the emergence of China's 'DeepC' high-efficiency AI language model caused a sharp drop in AI theme stocks.
- Concerns about the collapse of the AI bubble were significant in the market.
- However, investment sentiment rebounded rapidly due to unexpectedly strong performance from Big Tech companies + continued investment in AI infrastructure.
- It has been confirmed that the AI sector supported last year's US stock market rally.
- Demand and expectations for AI infrastructure are still maintained.


<h3>2. Riot Platforms: From Bitcoin Mining to AI Infrastructure Innovation Company</h3>
- Riot Platforms started as a large-scale Bitcoin mining and digital infrastructure company.
- Recently, it is attempting to diversify its business model to ride the crossroads of blockchain and AI innovation.
- Aggressively promoting the transition to data centers for AI and high-performance computing.
- Considering the possibility of utilizing up to 600MW of the total power of its Texas facility for AI HPC (High Performance Computing).
- Actively responding to the rapidly growing AI-based data center market.
- It has a structure to directly absorb the new market demand of Big Tech companies due to its strengths in data center infrastructure.


<h3>3. Latest Earnings Review: High Revenue Growth, Expanding Losses...Why?</h3>
- Q1 2025 Results: Revenue of $161.4 million (a 104% surge year-on-year)
- Recorded a loss of $296.4 million during the same period due to large-scale investments and business transformation.
- Struggling to balance between the existing Bitcoin mining business and the expansion of the AI data center business.
- Investment burden is temporary, but the goal is to secure new growth engines in the long term.


<h3>4. Wall Street's Strong Buy Opinion and Current Valuation</h3>
- Received a 'Strong Buy' rating from 11 research analysts.
- Average target price of $15.91 - 88.51% upside potential compared to the current ($8.44).
- It is evaluated as being completely undervalued considering growth potential and future-oriented business model.


<h3>5. AI/Data Center Investment Trends, and Why Riot Platforms is a Beneficiary</h3>
- Power demand for AI-driven data centers is occurring in the US, Europe, etc., and even power outage issues are occurring.
- Riot Platforms' large-scale power facilities and data center infrastructure have a fairly unique position in the future AI industry.
- Related articles continue to pour out amid global AI power shortages and data center shortages.
- It is attracting attention not only for Bitcoin mining but also as an AI conversion infrastructure platform stock.
- Investors are also looking at it attractively and are keeping an eye on the trend.


<h3>6. Investment Strategies to Consider Along with the US Stock Market Rally</h3>
- The US stock market (mainly AI, infrastructure, and innovative technology companies) continues to gain momentum.
- Existing dividend stock investors are also having many concerns.
- It's time to broaden your interest in new growth themes such as AI and data centers.
- Both of the stocks introduced today have uncertainties, but the market growth potential and corporate strategy are both positive.
- However, all investments require individual judgment! I recommend checking the detailed report.


<h3>< Summary ></h3>
Despite the AI stock bubble controversy, market sentiment rebounded due to Big Tech earnings and infrastructure investment.
Riot Platforms is gradually transforming from a Bitcoin mining company into an AI infrastructure platform company.
Recent revenue increased significantly, and losses increased due to increased investment in AI + data centers, but the purpose is to secure future growth engines.
It is attracting attention as an undervalued beneficiary of the AI/Data Center market along with Wall Street's strong buy opinions.
Investment strategies for US stocks and innovative industries are essential, but individual judgment and diversification are also emphasized.


<h3>SEO Summary</h3>
<ul>
  <li>Riot Platforms stands out as one of the most attractive AI stocks under $10</li>
  <li>Despite concerns about a sharp drop in AI stocks, Big Tech earnings and AI infrastructure investment led to a reversal in market sentiment.</li>
  <li>Aggressively investing in new businesses such as AI data centers beyond Bitcoin mining</li>
  <li>104% revenue growth in Q1 2025, short-term losses but securing future growth</li>
  <li>Optimized for investment interest keywords such as AI infrastructure, data centers, power demand, US stock market, and innovative technology</li>
</ul>


<h3>[Related Articles...]</h3>
<ul>
  <li><a href="https://nextgeninsight.net/?s=AI">AI Market, US Big Tech and Data Center Investment Strategies</a></li>
  <li><a href="https://nextgeninsight.net/?s=%EB%B9%84%ED%8A%B8%EC%BD%94%EC%9D%B8">Transformation of Bitcoin Mining Companies, Challenge to AI Data Centers</a></li>
</ul>

*YouTube Source: [서울경제TV]

– 비트코인 채굴과 AI의 융합! 저평가된 ‘가치 폭발’ 임박주?ㅣ오예진의 미국주식 외신톡!