CoreWeave Shares Jump Nearly 25% as Tech Rises on Results
US stocks rose on Wednesday, November 11, as tech rises on CoreWeave results. The Nasdaq closed up 1.6 per cent, CoreWeave shares surged nearly 25 per cent, and the dollar hit its highest level since May 2025 on expectations of a December Federal Reserve rate hike.
Tech rises on CoreWeave results: Wall Street's main indices climbed on Wednesday, November 11, led by the Nasdaq, which finished up 1.6 per cent. Shares in the data centre operator CoreWeave surged nearly 25 per cent after its third-quarter report eased worries about how it will pay for its AI buildout.
CoreWeave said it expects sales of US$13 billion to US$13.3 billion this year. That beat estimates and soothed concerns about its heavy debt burden, which had fuelled a sharp sell-off last month.
Relief across AI stocks
Patrick O'Hare, an analyst at Briefing.com, said CoreWeave posted "better-than-feared third-quarter results" and gave a "reassuring outlook" that quieted some of the debt financing concerns. He called it ironic that the same company had been a main catalyst for the earlier downside in the AI trade.
"This relief trade is carrying across the AI trade complex to include hardware, software, and semiconductor stocks," O'Hare said.
Semiconductor companies advanced. Nvidia bounced 3.0 per cent after a two-day rout that followed the revelation of an affair between CEO Jensen Huang and a woman suspected of being a Chinese spy. The company is now the subject of an FBI investigation.
Fed and the dollar
Stocks rose even though US central bankers signalled the Federal Reserve will lift interest rates in December to address persistent inflation. The dollar extended its rally to its highest level since May 2025 after a top Fed official floated a 0.5 percentage point increase next month.
Tech stocks had slumped last week on fears that Democrats would ramp up regulation of AI. This week they have bounced on bargain-buying and hopes those fears were overdone.
"Overall, the market is putting AI doubts to one side and is focusing on revenue potential and mega cap IPO as we move through this week," said Kathleen Brooks, research director at XTB.
Global markets and oil
London, Paris and Frankfurt stock markets all advanced after a largely positive day in Asia. Tokyo, Seoul and Taipei, where most of Asia's leading AI-linked firms are listed, posted big gains, and Shanghai also rose. Hong Kong fell.
Oil prices advanced after sinking on Tuesday on hopes for a US-Iran agreement to end their war and reopen the Strait of Hormuz.
