U.S. stocks moved higher on Wednesday as a strong earnings report from AI cloud provider CoreWeave brought buyers back to the artificial intelligence and semiconductor stocks that have been hit hard over the past week. The rally pushed the Nasdaq Composite back above where it stood before last week’s post-midterm sell-off. Trading took place on Veterans Day, a holiday when the stock market is open but the bond market is closed, so Treasury yields were on pause after surging on Tuesday’s hotter-than-expected inflation report.
What Moved Markets
The Dow Jones Industrial Average rose 254.60 points, or 0.49%, to close at 52,486.49. The S&P 500 gained 98.45 points, or 1.31%, to 7,619.38. The tech-heavy Nasdaq Composite jumped 400.31 points, or 1.60%, to finish at 25,466.19.
The gains were driven largely by technology. CoreWeave, which rents out access to AI chips over the cloud, reported third-quarter revenue of $3.66 billion, up 168% from a year earlier and above the $3.55 billion analysts expected, and raised its full-year revenue outlook. Just as important for investors, the company said it expects about $9 billion in customer prepayments and deposits over the next three months and does not plan to take on more expensive debt through 2027. That eased worries about how AI companies will pay for costly data center build-outs at a time when borrowing costs are rising.
The rally was narrow, though. The Dow spent the morning in negative territory before turning higher, and slightly more S&P 500 stocks fell than rose at times during the session. Rate-sensitive areas such as real estate and homebuilders remained under pressure after Tuesday’s consumer price index (CPI) report, a key inflation measure, came in hotter than expected for a third straight month. That data has traders increasingly betting that the Federal Reserve will raise interest rates in December. Oil also edged higher, with Brent crude rising about 1% to above $92 a barrel.
Notable Movers
CoreWeave (CRWV) surged about 24% after its earnings beat and upbeat guidance. CEO Michael Intrator said demand for its infrastructure “is and remains overwhelming.”
Nvidia (NVDA) rose 2.92% to $173.73, snapping a two-day losing streak. The chipmaker is still down sharply for November as its board investigates matters involving CEO Jensen Huang, and Baird downgraded the stock to Neutral on Wednesday.
Memory makers led the chip rebound, with Micron Technology (MU) and Sandisk (SNDK) each gaining more than 10%. Corning (GLW) also rose more than 10% after Jefferies began covering the stock with a buy rating, calling it an AI optical infrastructure play.
Microsoft (MSFT) slipped about 2%, falling for a second day after Anthropic announced new AI workplace tools that could compete with Office products, renewing concerns about AI disrupting traditional software companies.
Outside of tech, Fossil Group (FOSL) soared more than 25% after reporting a stronger-than-expected quarterly profit and raising its full-year revenue forecast.
Looking Ahead
The bond market reopens on Thursday, and investors will be watching whether Treasury yields resume their climb after Tuesday’s inflation shock, since higher yields can weigh on stock valuations. AI cloud provider Nebius (NBIS) reports results before the bell Thursday, offering another test of whether CoreWeave’s strength extends across the sector. Anthropic’s expected IPO, which could price as soon as next week, is also drawing heavy attention. With a December Fed rate hike now widely expected, any comments from Fed officials will be closely watched, and volatility is likely to remain elevated as the market works through recent sharp swings.