Nasdaq Gains 1.60% as CoreWeave Spike Revitalizes AI Trade
According to CNBC, Wednesday saw stocks climb higher, propelled by robust gains in CoreWeave alongside a recovery for Nvidia following consecutive sessions of losses for the chip manufacturer.
The Nasdaq Composite jumped 1.60% to end at 25,466.19. The S&P 500 advanced 1.31% to 7,619.38. The Dow Jones Industrial Average gained 254.60 points, or 0.49%, closing at 52,486.49.
The broader market recovery follows a Tuesday sell-off. Shares drifted downward after higher-than-anticipated October inflation data revived projections that the Federal Reserve will implement another interest rate hike at its final policy gathering of the year in December.
The consumer price index increased by 0.4% month over month in October, topping economists’ estimates. Chicago Federal Reserve President Austan Goolsbee called the latest CPI figure “another distressing report — borderline disturbing” in an interview with “PBS NewsHour”.
#MarketsWithMC | US stocks rally as CoreWeave surges 25%, Nvidia rebounds; S&P 500, Nasdaq gain over 1% – US stocks closed higher as CoreWeave earnings eased AI fears. – Nvidia stabilised after two sessions of sharp market declines. – S&P 500 and Nasdaq each rallied by more than…
Expectations for a quarter-point rate increase next month rose to about 90% following the Department of Labor release, according to the CME Group’s FedWatch tool. “Despite some technical uncertainty, higher than desired levels of inflation should keep the Fed in a stance of dissatisfaction with the degree of progress on inflation remaining lackluster, so hiking the Fed Funds policy rate in December is our and the market’s base case,” wrote Rick Rieder, chief investment officer of global fixed income at BlackRock, in commentary reported by CNBC.
Comments from Fed Governor Christopher Waller at a Bank of England conference in London also led traders to price in a greater chance of a quarter-point move. The U.S. bond market was closed on Wednesday for Veterans Day.
CoreWeave earnings beat expectations and lift guidance
Neocloud stock CoreWeave rallied nearly 25% after reporting third-quarter revenue that beat analyst expectations. CoreWeave also lifted operating income and revenue guidance for 2026. Third-quarter revenue for CoreWeave reached $3.661 billion, marking a 168% increase year over year and surpassing the $3.55 billion market projection, as reported by BigGo Finance.
BREAKING: CoreWeave stock, $CRWV, surges over +16% after posting stronger than expected earnings due to AI. Nasdaq 100 futures extend gains to +1.5% on the day. pic.twitter.com/3JwUmWRssb
As reported by CNBC, Nvidia moved up 2.9% after experiencing an initial drop of nearly 10% earlier in the week following CEO Jensen Huang’s confirmation of an affair with an alleged Chinese spy. The pullback in Nvidia weighed on the broader market Tuesday, with major averages ending the session lower.
Alongside the CoreWeave earnings surprise, the Philadelphia Semiconductor Index surged 5.7% to lead the wider tech rally, according to BigGo Finance. Micron Technology rose more than 12%, SK Hynix’s Nasdaq-listed ADRs gained 9.8%, and SanDisk surged about 14%.
Anthropic files for initial public offering
“The sentiment bump coming from CoreWeave results and Anthropic IPO demand is helping the broader ecosystem,” Ross Mayfield, an investment strategist at Baird Private Wealth Management, told CNBC. “Markets are continuing to unwind last week’s overshoot to the downside with cleaner positioning now a tailwind and an attractive near-term valuation/earnings story in a lot of the AI stocks.”
KuCoin reported that OpenAI’s quarterly revenue also surpassed $10 billion for the first time during the period. According to Matt Maley representing Miller Tabak, the tech sector rebound has lessened worries regarding whether the Anthropic public offering can advance smoothly.
Nasdaq tests 200-day moving average amid macroeconomic pressures
The December E-mini Nasdaq-100 Index is sharply higher as it tests the 200-day moving average at 28513.33. According to analysts, this specific threshold will likely dictate whether the ongoing rally triggers a trend reversal or prompts a test of the 28991.50 to 29611.00 retracement zone.
CoreWeave ($CRWV) says qualified AI demand is 10x its available capacity through 2027. CEO Michael Intrator says the company is holding back future capacity as pricing keeps rising.https://t.co/UI1mu1S6jd
KuCoin said that despite the tech sector recovery, continued macroeconomic pressures are signaled by a stronger dollar alongside gold dropping beneath $4,000. Based on federal funds futures, market participants have fully accounted for a pair of 25-basis-point rate increases leading up to 2027, with expectations for near-term rate adjustments edging slightly higher on Tuesday.
“The question now is more of one of the extent of the hike,” Rick Rieder wrote.