Market Overview
US stocks rallied Wednesday as CoreWeave’s strong results and a rebound in Nvidia revived interest in artificial intelligence (AI) shares. Upbeat corporate results from CoreWeave and positive sentiment surrounding AI lab Anthropic’s planned IPO buoyed the rally. This advance occurred despite persistent inflation concerns and renewed hawkish signals from Federal Reserve officials, which elevated expectations for a December rate hike. European equities also extended their rebound, with tech sector support driving broad gains.
Markets
US stocks closed higher on Wednesday, with the Nasdaq Composite leading the advance, gaining 1.60% to 25,466.19. The S&P 500 rose 1.31% to 7,619.38, while the Dow Jones Industrial Average added 0.49% to 52,486.49.
European equities concluded their session sharply higher. The Euro STOXX 50 gained 1% to 6,393, and the STOXX Europe 600 jumped 0.7% to a record high of 663.1. Germany’s DAX advanced 1.20% to 26,662.77, and the FTSE 100 in London increased 0.78% to 10,835.47. Australian shares were headed for a weaker Thursday open, with S&P/ASX 200 futures down 0.5% in early trading.
In commodity markets, Brent crude oil prices rose 1.20% to $92.59, and WTI crude advanced 0.45% to $86.43. The US Dollar Index strengthened by 0.69% to 102.94. The US bond market was closed Wednesday for Veterans Day.
What Drove Markets
The rebound in US equities was primarily driven by renewed optimism in the artificial intelligence sector. Neocloud stock CoreWeave rallied nearly 25% after reporting better-than-expected third-quarter revenue and lifting its 2026 operating income and revenue guidance. This performance helped Nvidia climb 2.87% after two sessions of declines. Further optimism was fueled by AI lab Anthropic’s plans to offer 825 million shares in an IPO next week, potentially valuing the company at up to $1.4 trillion, and reports of rival OpenAI’s first-time $10 billion revenue in the September quarter. Baird Private Wealth Management strategist Ross Mayfield cited cleaner positioning and more attractive near-term valuations as supports for the rebound, while investors continued to weigh potential AI regulation after the midterm elections. Christian Olesen, founder and fund manager of Olesen Value Fund, stated that investors in the U.S. are “still too optimistic and complacent,” adding that valuations are “generally expensive, especially in tech stocks with a large speculative component,” which means “risks are skewed to the downside.” CoreWeave CEO Michael Intrator stated he did not “anticipate any impact” from political developments regarding AI industry regulation, expressing comfort with their pipeline based on permitting and construction status of data centers.
Despite the equity rally, persistent inflation concerns and hawkish signals from Federal Reserve officials kept rate hike expectations elevated. Stronger-than-expected October inflation data, showing a 0.4% month-over-month increase in the consumer price index, renewed expectations for a December rate hike. Chicago Federal Reserve President Austan Goolsbee called the latest CPI figure “distressing — borderline disturbing.” Separately, Fed Governor Christopher Waller indicated he would support a December rate increase and argued for considering a 50-basis-point hike if price pressures worsened. Dallas Fed President Lorie Logan stated the central bank needed “at least two more quarter-point rate increases” to bring inflation under control. Following the October CPI report, CME Group’s FedWatch tool showed roughly 90% odds of a 25-basis-point rate increase in December.
In commodity markets, oil prices rebounded after a Tuesday decline that had briefly pushed benchmark Brent crude futures below $90 a barrel for the first time since August. Conflicting signals over prospects for ending the Iran war left traders reassessing geopolitical risks after Tuesday’s oil-price decline.
Stocks to Watch
CoreWeave (CRWV): The neocloud stock surged 24.71% after reporting third-quarter revenue that exceeded analyst expectations and raising its operating income and revenue guidance for 2026. CEO Michael Intrator expressed confidence in the company’s pipeline and did not anticipate significant impact from potential AI industry regulation.
Nvidia (NVDA): Shares of the semiconductor giant climbed 2.87%, rebounding after two sessions of declines. The move contributed to the broader AI sector’s renewed momentum.
Nebius (NBIS): As a peer of CoreWeave, Nebius rallied 15.44%, benefiting from the renewed optimism and strong corporate results seen across the AI infrastructure sector.
Siemens AG (SIE.DE): Shares of the German industrial conglomerate rose 2.01% in European trading.
ASML Holding N.V. (ASML.AS): Shares of the European semiconductor equipment supplier gained 3.14% in trading, supported by the positive earnings results from CoreWeave and overall strength in the tech sector.
Infineon: The chipmaker added 6.4% in European trading, benefiting from the boost to AI infrastructure companies following CoreWeave’s strong performance.
Learning Hub
When a central bank favors tighter conditions, hawkish language identifies that preference for higher interest rates or a more restrictive policy stance.