Technology stocks rebound on Coreweave's good news... NASDAQ 1.6%↑ (comprehensive)
Dow closed up 0.49%, S&P 500 up 1.31%, Nasdaq up 1.60%.
Quick Look
- In the US New York stock market, major indices rose simultaneously thanks to Coreweave's good performance and a rebound in technology stocks.
- The Dow rose 0.49%, the S&P 500 rose 1.31%, and the Nasdaq rose 1.60%, and Coreweave's stock price soared 24.71%.
- The favorable demand forecast for Antropic IPO also supported investor sentiment.
AI-generated summary
Why It Matters
In the US New York stock market, major indices rose simultaneously, thanks to the good performance of AI cloud company Coreweave and the rebound in technology stocks. Coreweave announced surprising performance and an improved outlook that exceeded market expectations, and Antropic's IPO demand forecast also showed favorable results. However, the consumer price index (CPI) in October exceeded market expectations, and caution about further interest rate hikes by the Federal Reserve continues.
On the 11th (local time), major indices rose in the New York Stock Exchange thanks to the good performance of artificial intelligence (AI) cloud company Coreweave and the rebound of technology stocks.
On this day, on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 52,486.49, up 254.60 points (0.49%) from the previous day.
The Standard & Poor's (S&P) 500 index closed at 7,619.38, up 98.45 points (1.31%) from the previous day, and the Nasdaq Composite Index closed at 25,466.19, up 400.31 points (1.60%).
The Nasdaq 100 index, centered on large technology stocks, rose 2.28%, almost making up for the decline after the November 3 U.S. midterm elections.
Coreweave, which has been at the center of the AI bubble theory, led the stock price rise by announcing 'surprising performance' and an upgraded outlook that exceeded market expectations the previous day.
On this day, Coreweave's stock price soared 24.71%.
In addition, CEO Mike Intrater expressed confidence in the company's stock price and announced that he would put his plan to sell his stake on hold, boosting investor sentiment.
AI and semiconductor stocks also rose sharply.
Micron jumped 11.89%, SanDisk jumped 13.69%, and SK Hynix American Depository Receipt (ADR) jumped 9.71%. The Philadelphia Semiconductor Index also rose 5.66%.
Nvidia, which recently plummeted due to CEO Jensen Huang's scandal, also rebounded 2.92%.
In addition, the positive demand forecast conducted by AI startup Antropic ahead of its initial public offering (IPO) also supported investor sentiment.
It was reported that Antropic's IPO attracted investment demand several times the amount of the public offering, reaffirming trust in the overall AI ecosystem.
“The psychological rebound driven by Coreweave’s performance and Antropic IPO demand is helping the broader ecosystem,” said Ross Mayfield, investment strategist at Baird.
He analyzed that the market is shaking off the excessive fall last week and continuing to rebound based on lighter positioning and the short-term corporate value of AI stocks.
“Coreweave has alleviated many of the broader concerns around demand, pricing and financing,” said Jenas Henderson’s Shaon Chachi. “You can slow down AI investment, but you can’t slow down AI adoption.”
The U.S. Treasury market was closed today in observance of Veterans Day.
However, as the October consumer price index (CPI) announced the previous day exceeded market expectations and Chicago Federal Reserve Bank President Austan Goolsbee expressed concern about rising price pressures, caution about further interest rate hikes by the Federal Reserve System (Fed) continues.
What to Watch
AI outlook — possibilities, not facts
The U.S. stock market's rebound led by technology stocks is likely to last for a short period of time.
Possible · Within days
Market volatility may continue as the Federal Reserve remains wary of further interest rate hikes.
Likely · Within weeks
Open Questions
- Whether Coreweave’s performance will continue to improve
- Timing and size of additional interest rate hikes by the Federal Reserve
- Antropic IPO's final offering price and listing schedule
