[New York Stock Market] AI Stocks Rebound on CoreWeave's Strong Earnings; Nasdaq Up 1.6%

CoreWeave Shares Surge 24.71% on Strong Earnings

Wall Street's three major indexes all closed higher on Wednesday, Nov. 11 (local time). Investor sentiment toward technology stocks recovered after AI cloud company CoreWeave's shares surged on earnings that topped market expectations. Nvidia also rebounded after falling for two consecutive sessions.

The Dow Jones Industrial Average closed up 254.60 points, or 0.49%, at 52,486.49. The S&P 500, which is weighted toward large-cap stocks, rose 98.45 points, or 1.31%, to 7,619.38, while the Nasdaq Composite, which is weighted toward technology stocks, gained 400.31 points, or 1.60%, to finish at 25,466.18.

Inside the New York Stock Exchange. New York, U.S. = Correspondent Hwang Yunju

AI-related stocks led the market's advance. Shares of CoreWeave, an AI cloud infrastructure company, surged nearly 25% after the company reported that its third-quarter revenue exceeded market forecasts. CoreWeave also raised its full-year revenue and operating income outlook, boosting expectations for investment in AI infrastructure.

Nvidia shares also rose 2.9%. The stock had plunged about 10% over the first two days of this week after Nvidia CEO Jensen Huang acknowledged an inappropriate relationship with a woman suspected of being a Chinese spy, but it rebounded on Wednesday. Nvidia's sharp decline had contributed to a broad drop in major U.S. stock indexes the previous day.

Expectations for an initial public offering (IPO) by AI company Anthropic also improved investor sentiment toward technology stocks. In an amended registration statement filed with the U.S. Securities and Exchange Commission (SEC) the previous day, Anthropic said it plans to offer 825 million shares in an IPO scheduled for next week. The market expects Anthropic's valuation to reach as much as $1.4 trillion.

Ross Mayfield, an investment strategist at Baird Private Wealth Management, told CNBC that "CoreWeave's results and demand for the Anthropic IPO are improving investor sentiment across the AI ecosystem." He added that "the market is reversing last week's excessive share price declines," explaining that "with investment positions having been cleared out, the short-term valuations and earnings appeal of AI companies are coming into focus."

However, inflation concerns and the possibility of further tightening by the Federal Reserve (Fed) remain headwinds for the stock market. The Consumer Price Index (CPI) for October, released by the U.S. Department of Labor the previous day, rose 0.4% from the previous month, exceeding market expectations. This has increased the likelihood that the Fed will raise its benchmark interest rate again at its regular Federal Open Market Committee (FOMC) meeting in December.

Chicago Fed President Austan Goolsbee said in an interview with PBS NewsHour the previous day that the October CPI report was "worrisome once again. It is shocking," expressing concern about inflation. Fed Governor Christopher Waller also supported a December rate hike, while leaving open the possibility of a larger increase if inflationary pressures persist.

According to CME FedWatch, the probability of a 0.25-percentage-point rate hike in December rose to about 90% after the October CPI report was released.

Rick Rieder, BlackRock's chief investment officer of global fixed income, said, "With progress in bringing inflation down still inadequate, it will be difficult for the Fed to be satisfied with the current level of inflation." He added, "A December rate hike is the market's and our base case; the key question now is the size of the increase."

International oil prices rose for the first time in three sessions. Expectations for negotiations weakened after Iran's security chief reaffirmed that nuclear materials, including enriched uranium, could never be taken out of the country.

On the ICE Futures Exchange, January-delivery Brent crude closed up 1.39% at $92.76 per barrel. On the New York Mercantile Exchange, December-delivery U.S. West Texas Intermediate (WTI) crude closed up 0.57% at $86.53 per barrel.

International gold prices fell for a second consecutive session amid inflationary pressures in the United States and concerns about further Fed rate hikes. After the CPI released the previous day came in above market expectations, the possibility of a 0.5-percentage-point Fed rate hike came into focus. The dollar rose to its highest level in four weeks, putting downward pressure on gold prices. In general, a stronger dollar makes dollar-denominated gold more expensive, while higher interest rates reduce the appeal of gold, which pays no interest.

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

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