CoreWeave leaps 24.7% as AI stocks claw back last week's sell-off
AI stocks led Wall Street back up on Wednesday, with CoreWeave climbing 24.7 per cent after the cloud provider told investors it lost less money over the summer than analysts expected and raised its revenue forecast for the year.
The S&P 500 rose 1.3 per cent to 7,619.38, pulling within 2.6 per cent of the all-time high it set last month and close to recovering all of last week's sell-off. The Nasdaq composite rallied 1.6 per cent to 25,466.19 and the Dow Jones Industrial Average added 254.60 points, or 0.5 per cent, to 52,486.49.
CoreWeave chief executive Michael Intrator said the company expects roughly US$9 billion in customer prepayments and deposits over the next three months, alongside other cash sources. Some analysts said that marked progress toward self-funding its business, easing concern about how it will carry higher borrowing costs. The company also raised its revenue forecast above what analysts had expected.
Worries about whether AI will generate enough profit to justify its expensive build-out deepened after sweeping Democratic victories in last week's midterm elections, on expectations that control of statehouses could bring restrictions on new data centres. Micron Technology rose 11.9 per cent, Broadcom 4 per cent and GE Vernova 1.4 per cent.
Outside tech, Fossil Group gained 26.7 per cent on a stronger quarterly profit and a higher revenue forecast, while United Airlines slipped 1.8 per cent as Brent crude added 1.4 per cent to US$92.76 a barrel. The US bond market was closed for Veterans Day; yields had jumped a day earlier on a worse-than-expected inflation reading that raised expectations of Federal Reserve rate hikes, and homebuilders fell, with D.R. Horton down 1.5 per cent and PulteGroup 0.8 per cent. South Korea's Kospi jumped 2.6 per cent, while Hong Kong's Hang Seng fell 1 per cent.
