NYSE building, May 2024 archive. 颐园居 / Wikimedia Commons / CC BY-SA 4.0, cropped; photograph remains under this license.
NEW YORK – Stocks closed higher Wednesday, and the Nasdaq Composite jumped 400 points, after CoreWeave’s stronger-than-expected quarter and its $132.5 billion order backlog reignited the artificial-intelligence trade and lifted chip stocks across the board.
The Dow Jones Industrial Average rose 254.60 points, or 0.49%, to 52,486.49. The S&P 500 gained 98.45 points, or 1.31%, to 7,619.38. The Nasdaq Composite climbed 400.31 points, or 1.60%, to 25,466.19. The Russell 2000 added about 0.8% to about 2,845.
Source: NYSE, Nasdaq and NYMEX/COMEX closing data. WTI crude and gold figures are official settlement prices.
CoreWeave, a cloud provider that rents out computing power from advanced chips, did the heaviest lifting. Its stock soared 24.7% to $60.77 after the company reported third-quarter revenue of $3.661 billion, up 168% from $1.365 billion a year earlier, and raised its full-year 2026 revenue forecast to between $13.0 billion and $13.3 billion, from $12.4 billion to $13.2 billion. Its backlog of future orders reached about $132.5 billion at September 30, and chief executive Michael Intrator called it a “breakout quarter,” telling investors the company is largely sold out of computing capacity through 2027. CoreWeave also said it expects to raise less than $5 billion in additional parent-level capital through the end of 2027, easing fears that the AI build-out depends on heavy new borrowing.
The numbers mattered far beyond one stock. CoreWeave had become a test case for whether demand for AI computing can support the industry’s spending, and last week chip stocks sank on worries the build-out could slow. Wednesday’s results pointed the other way.
Chip stocks lead the rally
Micron jumped 11.9% to $811.30 and SanDisk surged 13.7% to $977.69; both hold long-term supply deals with CoreWeave. AMD climbed 7.3% to $552.90, Intel rose 7.5% to $62.47 and Broadcom added 4.0% to $345.22. Nebius, another AI cloud company, leaped 15.4% to $154.69 a day before its own earnings report.
Nvidia rose 2.9% to $173.73, recovering from a premarket drop of about 6% that followed a statement that its board opened an independent investigation into a foreign intelligence effort targeting chief executive Jensen Huang. The gain came even as Baird analysts were reported to have cut their rating on the stock to neutral and lowered their price target to $200 from $500. Nvidia is expected to report its own results November 17.
An amended stock-sale filing from Anthropic, the AI company preparing to go public, showed AMD and Micron among seven technology companies that agreed to buy a combined $26 billion of its shares, with AMD’s piece about $2.5 billion and Micron’s about $1.0 billion, according to reports on the filing.
Source: NYSE and Nasdaq closing data, cross-checked against exchange feeds.
Rates take a day off, but 5% still hangs over the market
The bond market was closed for Veterans Day, removing a source of pressure that had weighed on stocks Tuesday, when a hotter-than-expected October inflation report pushed the 10-year Treasury yield above 5% and Fed Governor Christopher Waller said a half-point December rate hike should be on the table if inflation stays high. The 10-year yield last traded Tuesday evening at about 5.00%. Bond trading resumes Thursday.
Ten of the eleven S&P 500 sectors rose. Technology led with a 3.2% gain, followed by energy, up 1.9%, and industrials, up 1.3%. Consumer discretionary was the only sector to fall, edging down 0.05%. The Dow’s smaller gain showed how much of the day’s strength sat in technology.
In commodities, WTI crude settled at $86.53 a barrel, up 0.6%, and gold settled at $4,000.50 an ounce, down 0.7%. The dollar index rose 0.7% to 102.93. Bitcoin traded near $74,560, up about 1% on the day.
Investors next turn to Nebius’s report Thursday and Nvidia’s results expected November 17, with the 5% Treasury yield back in play when bond trading reopens.
In plain words: Wednesday’s rebound means the companies selling the picks and shovels of the AI boom say their order books are full years out, which calmed fears that the whole trade was built on borrowed money. For everyday savers and borrowers, the catch has not gone away: with the 10-year yield near 5%, mortgages, car loans and business credit stay expensive, and the Federal Reserve’s December meeting will decide whether that pressure grows.
JBizNews Desk | Wall Street
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