U.S. stocks rose across the board on Wednesday, and the strong financial reports from CoreWeave alleviated investors' concerns about soaring expenditures on artificial intelligence.
As of the close, the Dow Jones Industrial Average rose by 254.60 points, or 0.49%, to 52,486.49; the Nasdaq Composite Index rose by 1.60% to 25,466.19; and the S&P 500 Index rose by 1.31% to 7,619.41.
Popular Stocks Performance
Star tech stocks showed mixed movements, with Tesla, Apple, and Google rising by more than 2%, while Amazon, Microsoft, and Meta fell.
CoreWeave surges by nearly 25%. Previously, the company stated that it would achieve profitability (after adjustments) in the first half of 2028, aiming to assure investors that strong demand and customer commitments will support its debt-driven expansion.
The market sentiment for artificial intelligence infrastructure stocks has improved, with Nebius Group and Applied Digital each rising by at least 10%.
The Philadelphia Semiconductor Index rose by 5.73%, with all its constituent stocks moving higher. Among them, ARM led the gain with a rise of 12%, and NVIDIA stopped its decline and rebounded, rising by 2.87%.
Boosted by price increase expectations, data storage stocks performed well, with Sandisk and Micron Technology rising by over 10%.
The optical communication sector saw an upward trend, with Lumentum rising by 10.67% and Coherent rising by 9.25%.
The NASDAQ China Golden Dragon Index fell by 0.80%. NetEase declined by 4.61%, while JD.com and Alibaba both fell by more than 1%.
Market Overview
This week, the stock market has been highly volatile. The slowdown in data center deployments, rising interest rates, and NVIDIA's difficulties contrast with the willingness to buy on dips.
“‘CoreWeave’ symbolizes treating all artificial intelligence investments as good investments, shifting towards a more sober assessment of the returns on billions of dollars invested in AI,” said Steve Sosnick, chief market analyst at ETP Securities. “The financial reports helped to alleviate some concerns,” he added.
Artificial intelligence newcomer Anthropic stated in updated documents with the U.S. Securities and Exchange Commission on Tuesday that it will issue 825 million shares in its initial public offering scheduled for next week, which could value the five-year-old company at up to $1.4 trillion. Vanda Research mentioned in a memorandum that this IPO could attract record-level purchases from retail investors and may surpass SpaceX.
Ross Mayfield, an investment strategist in private wealth management at Baird, said: "The emotional boost brought about by the performance of CoreWeave and the demand from Anthropic IPO is helping a broader ecosystem. The market is continuing to digest last week's overcorrection, and now clearer positions are becoming advantageous. At the same time, the recent valuation/earnings stories of many AI stocks are also very attractive."
Chicago Fed Chairman Austan Garlsby issued a warning regarding the latest CPI data. "This is another disturbing report – almost surprising."
According to CME Group's FedWatch tool, the expectation of a 25-basis-point interest rate hike next month has risen to around 90%.
Rick Reid, Chief Investment Officer of Blackstone's Global Fixed Income, wrote: "Despite some technical uncertainties, inflation levels higher than expected should make the Federal Reserve dissatisfied with the progress of inflation. Therefore, a rate hike in the federal funds policy rate in December is the baseline expectation for both us and the market. The question now is more about the magnitude of the rate hike."
In terms of economic data, according to the data from the Mortgage Bankers Association of America MBA, as of the week ending November 6th, mortgage applications surged by 6.2%. Meanwhile, the interest rate for 30-year fixed-rate mortgages was 7.21%, which is down 9 basis points from the previous week and represents the fourth consecutive week of decline. It has also fallen nearly 30 basis points from the high of 7.5% seen at the beginning of last month, which was the highest level in nearly two years.
The U.S. bond market is closed for one day due to Veterans Day.
Regarding the situation in the Middle East, according to CCTV News, on the 11th local time, Iranian Parliament Speaker Ali Khamenei stated that Iran has given a clear and straightforward response to the United States, outlining Iran's legitimate demands. To date, the United States has not provided any official or specific response to the information and proposals submitted by Iran. Khamenei emphasized that if the Strait of Hormuz is to be reopened and negotiations are to be resumed, the United States must fully implement the seven conditions proposed by Iran.
U.S. Central Command stated that U.S. forces are continuously operating day and night to ensure that the Strait of Hormuz remains open for commercial shipping. At the same time, the U.S. military strictly enforces a tight maritime blockade against Iran and collaborates with various relevant departments of the U.S. government to prevent the Iranian Islamic Revolutionary Guards from using land routes and the Caspian Sea corridor to transfer advanced weapon systems, dual-use technologies, sanctioned materials, or engage in "illegal financial transactions."
Large-cap performance
International oil prices soared and then fell back. The WTI crude oil futures for December delivery rose by 49 cents, a gain of 0.57%, closing at $86.53 per barrel. The ICE Brent crude oil futures for January delivery next year rose by $1.27, a gain of 1.39%, closing at $92.76 per barrel.
The precious metals market showed divergence: gold for November on the New York Mercantile Exchange fell by $28.70, a decrease of 0.71%, closing at $3,992.00 per ounce. Silver for November rose by 78.00 cents, an increase of 1.53%, closing at $51.881 per ounce.
