[New York Stock Market] Nasdaq Rises 1.2% on Strong CoreWeave Earnings

CoreWeave Soars 21%... Nvidia Also Rebounds

On November 11 local time, the three major indexes on the New York Stock Exchange were mixed. AI cloud company CoreWeave surged after reporting earnings that beat market expectations, while Nvidia also rebounded, lifting the Nasdaq. Although the U.S. Consumer Price Index (CPI) for October, released the previous day, came in above market expectations, increasing the likelihood that the Federal Reserve (Fed) will raise interest rates in December, investor sentiment toward AI-related stocks appears to be recovering.

As of 10:16 a.m. in New York, the Dow was trading at 52,107.15, down 124.74 points (0.24%) from the previous trading day. The large-cap S&P 500 was up 60.05 points (0.80%) at 7,580.98, while the tech-heavy Nasdaq was up 311.08 points (1.24%) at 25,376.96.

AI-related stocks are leading the market's gains today. Shares of CoreWeave, an AI cloud infrastructure company, are up 21.12% after the company reported third-quarter revenue that exceeded market expectations. CoreWeave also raised its full-year revenue and operating income forecasts.

Nvidia shares are also up 2.47%. The stock rebounded today after falling about 10% over two days earlier this week, following Nvidia CEO Jensen Huang's acknowledgment of an inappropriate relationship with a person suspected of being a Chinese spy. Nvidia's steep drop contributed to a broad decline in major U.S. stock indexes the previous day.

Ross Mayfield, an investment strategist at Baird Private Wealth Management, told CNBC, "CoreWeave's earnings and demand for Anthropic's initial public offering (IPO) are improving investor sentiment across the AI ecosystem." He added, "The market is rebounding after excessive stock declines last week, as investors unwind their positions and the short-term valuations and earnings appeal of AI companies come into focus."

However, the possibility of further Fed tightening amid inflation concerns is weighing on the stock market. The October CPI released by the U.S. Department of Labor the previous day rose 0.4% from the previous month, exceeding market expectations. Core CPI, which excludes volatile food and energy prices, also rose 0.3% month over month, indicating that upward pressure on prices continues.

As a result, the probability of a 0.25-percentage-point interest rate hike in December, as reflected in the Chicago Mercantile Exchange's (CME) FedWatch tool, climbed to about 90%.

Rick Rieder, BlackRock's chief investment officer (CIO) of global fixed income, said, "Progress in bringing inflation down remains insufficient, so the Fed will find it difficult to be satisfied with the current level of prices." He added, "A December rate hike is the market's and our base-case outlook; the key question now is the size of the increase."

Meanwhile, the U.S. bond market was closed today for Veterans Day.

This content was produced with the assistance of AI translation services.