By Chuck Mikolajczak and Utkarsh Hathi
NEW YORK, Nov 11 (Reuters) – U.S. stocks closed higher on Wednesday, with the S&P 500 and Nasdaq each rising more than 1%, as earnings from neocloud company CoreWeave eased investors’ concerns about the sustainability of the AI business, while Nvidia stabilized after two straight sessions of sharp declines.
Batted CoreWeave shares jumped 24.7%, their biggest daily percentage gain in more than three months, to close at the highest level in two weeks. The company said it would become profitable in the first half of 2028 on an adjusted basis, seeking to reassure investors that strong demand and customer commitments could support its debt-fueled expansion.
Sentiment improved among AI infrastructure stocks, with Nebius Group jumping 15.4% and Applied Digital rising 7.4%.
Nvidia rose after losing about $430 billion in market capitalization over the previous two sessions as investors worried about CEO Jensen Huang’s relationship with a businesswoman believed to be a Chinese spy.
Stocks have been volatile in recent days. Investors have raised concerns about increased regulation in the AI space following Democratic victories in the US midterm elections last week. This, along with concerns over Nvidia’s leadership, have put pressure on one of the main pillars of the current bull market.
Contributing to choppy stock trading, investors were encouraged by cooling oil prices but concerned by red-hot inflation data that pushed Treasury yields sharply higher.
“Everyone is looking for a canary in the coal mine every day, every minute of every day, and then they react every day,” said Thomas Martin, senior portfolio manager at Globalt in Atlanta.
“What we saw was you went back and forth, back and forth, back and forth between the AI, it’s good, the AI is not that good. We worry about that, so oh, that’s great.”
The Dow Jones Industrial Average rose 254.60 points, or 0.49%, to 52,486.49, the S&P 500 gained 98.45 points, or 1.31%, to 7,619.38 and the Nasdaq Composite gained 400.31 points, or 1.60%, to 25,466.19.
TECHNOLOGY SECTOR LEADS MARKET GAINS
The Philadelphia SE Semiconductor Index jumped 5.7% to close at its highest level since November 3. Every component of the index rose.
Recent pronounced selling pressure has prompted some investors to buy the dip, but early indicators show it’s too early to give the green light.
Investors bought stocks even during last week’s selloff, with all net inflows from ETFs and institutional clients leading the buying, Bank of America Global Research analysts said in a note.
Gn bussni
