On Wednesday, most U.S. stocks rose, driven by a significant increase in CoreWeave and a rebound in NVIDIA; previously, this chip manufacturer had seen declines for two consecutive trading days.
The Nasdaq Composite Index rose by 1.6%, the S&P 500 Index rose by 1.31%, and the Dow Jones Industrial Average increased by 254 points, or 0.49%.
The new type of cloud ( Neocloud ) stock CoreWeave soared by 20%, with the third-quarter revenue previously announced exceeding analysts' expectations. CoreWeave also raised its guidance for operating profit and revenue for 2026.
Meanwhile, NVIDIA's stock price rose by over 4%. At the beginning of this week, after the revelation of CEO Jensen Huang's extramarital affair, the stock price fell by nearly 10%. NVIDIA's decline dragged down the overall market on Tuesday, resulting in lower closes for major stock indices.
The artificial intelligence laboratory Anthropic stated in a document updated by the U.S. Securities and Exchange Commission on Tuesday that it plans to issue 825 million shares in its upcoming initial public offering next week, which could value the company, which was established five years ago, at up to $1.4 trillion.
"The boost in sentiment brought about by CoreWeave performance and Anthropic IPO demand is helping a broader ecosystem," said Ross Mayfield, an investment strategist at Baird Private Wealth Management. "The market is continuing to digest the excessive decline from last week, and cleaner positions are now becoming a favorable factor, moreover, many AI stocks have attractive near-term valuation/earnings narratives."
On Tuesday, the stock market declined as October inflation data, which was stronger than expected, reignited market expectations that the Federal Reserve would raise interest rates again at its last policy meeting of the year in December. The consumer price index for October rose 0.4% month-on-month, exceeding economists' forecasts.
Chicago Fed Chairman Austen Gulbsby issued a strong warning regarding the latest CPI data.
"This is another concerning report – almost unsettling," Gursby said on Tuesday.
According to CME Group FedWatch tools, after the data release by the U.S. Department of Labor, market expectations for a 25-basis-point interest rate hike next month have risen to around 90%.
"Despite some technical uncertainties, inflation being above the desired level should keep the Federal Reserve dissatisfied with the still inadequate progress on inflation control. Therefore, a raise in the federal funds policy rate in December is our baseline scenario, as well as that of the market," wrote Rick Reid, Chief Investment Officer for Global Fixed Income at BlackRock. "The question now is more about how large the rate hike will be."
Comments made by Federal Reserve Board member Christopher Waller at a meeting of the Bank of England in London on Tuesday also led traders to factor in a greater likelihood of a 25-basis-point move.
The U.S. bond market was closed on Wednesday due to Veterans Day.
Responsible Editor: Li Tong
