S&P 500, Nasdaq rise on CoreWeave results calm AI spending jitters

NEW YORK: The S&P 500 and the tech-heavy Nasdaq climbed more than 1 percent on Wednesday after neocloud firm CoreWeave’s solid earnings eased investor concerns about bloated AI expenditure, while Nvidia recovered some ground following a rout in the last two sessions.

CoreWeave’s shares jumped 25.3 percent to a near two-week high after the battered company said it would become profitable in the first half of 2028, on an adjusted basis, as it sought to reassure investors that strong demand and customer commitments could support its debt-fueled expansion.

The results boosted sentiment across AI infrastructure stocks, with Nebius Group and Applied Digital rising 17.4 percent and 8.6 percent, respectively.

Nvidia rose 3.8 percent after shedding about USD430 billion in the previous two sessions as questions about CEO Jensen Huang’s relationship with a businesswoman alleged to be a Chinese spy roiled markets.

The Philadelphia SE Semiconductor index jumped 7 percent to a one-week high, with Marvell Technology and Micron up 12.2 percent and 13.3 percent, respectively.

Equities have whipsawed this week, with concerns over slower data center deployment, higher interest rates and Nvidia’s troubles pitted against the appetite to buy the dip.

Investors bought equities during last week’s selloff, with all net inflows coming through ETFs and institutional clients leading the purchases, Bank of America Global Research analysts said in a note.

“We’ve seen some of the leverage getting washed out post the midterms, which could set us up for a constructive year-end rally,” said Ron Albahary, chief investment officer, Laird Norton Wetherby.

At 11:44 a.m. ET, the Dow Jones Industrial Average rose 51.98 points, or 0.10 percent, to 52,283.87, the S&P 500 gained 93.80 points, or 1.25 percent, to 7,614.73, and the Nasdaq Composite added 463.99 points, or 1.85 percent, to 25,529.87.