End of worries?: AI stocks are celebrating a brilliant comeback on Wall Street

With the recent massive sell-off in AI stocks, Coreweave in particular has had to give up. Now the cloud provider can make up for some of the losses. Other stocks related to artificial intelligence are also significantly higher.

U.S. stocks on Wall Street rose after Coreweave's latest earnings results eased concerns that profits from artificial intelligence would not flow fast enough to cover infrastructure debt loads.

The Dow Jones Industrial Average rose 254.60 points or 0.49 percent to 52,486.49. The broader S&P 500 gained 98.45 points or 1.31 percent to 7,619.38 points. The technology-heavy Nasdaq Composite gained 400.31 points or 1.60 percent to 25,466.19 points. Even after this week's sharp rise, the Nasdaq is still more than 7 percent below its record high.

Crude oil futures rose 49 cents, or 0.6 percent, to $86.53 a barrel in New York. Oil traders are betting that the US and Iran will reach an agreement and reopen the Strait of Hormuz as the war is unpopular with American voters.

The U.S. dollar index, which measures the greenback against a basket of major currencies, hit its highest level in more than a year in December amid expectations of a Federal Reserve interest rate hike. The dollar-sensitive gold futures fell by $28.70 or 0.7 percent to $3,992.00 per troy ounce.

Coreweave shares jumped 25 percent to $60.77 after the company reported third-quarter results late Tuesday.

Investors had questioned the viability of the business model, which involves purchasing premium chips from Nvidia for data centers and leasing them to AI companies. The recent rise in US Treasury yields had made the company's aggressive growth plans unviable due to rising interest costs. Coreweave executives said advance payments from customers allowed it to keep debt levels under control.