Stock Market Today: Nasdaq and S&P 500 Rally as CoreWeave Surges, Nvidia Rebounds and AI Stocks Recover

U.S. stocks rallied on Wednesday, November 11, as strong earnings from CoreWeave helped renew confidence in AI stocks following a volatile stretch for Wall Street. The Nasdaq Composite climbed approximately 1.5% shortly after the opening bell, while the S&P 500 advanced 0.9% and the Dow Jones Industrial Average edged up 0.1%. Semiconductor and cloud computing stocks led the gains as investors returned to technology companies that had suffered substantial losses in recent sessions.

The recovery followed Tuesday's decline, when the Nasdaq fell 0.7%, the S&P 500 lost 0.4%, and the Dow slipped 0.3% after hotter-than-expected inflation data raised concerns about additional Federal Reserve interest rate hikes. Nvidia rebounded Wednesday after two difficult sessions, while CoreWeave's upbeat outlook offered reassurance about demand for AI infrastructure. However, Treasury yields remained a concern after the benchmark 10-year yield briefly exceeded 5% Tuesday, adding uncertainty to the broader market's recovery.

Market Movers:

• CoreWeave (CRWV) +17%: Shares surged in premarket trading after the AI cloud provider reported third-quarter revenue of $3.66 billion, exceeding expectations, and raised its full-year revenue forecast to between $13 billion and $13.3 billion. Management also highlighted a record $133 billion revenue backlog and approximately $9 billion in expected customer prepayments and deposits, helping ease concerns about financing its expansion.
• Nvidia (NVDA) +4.9%: Shares rebounded in premarket trading after two consecutive declines erased more than $430 billion in market value amid scrutiny involving CEO Jensen Huang. The recovery came despite a downgrade from Baird, which cited uncertainty surrounding potential government investigations and Huang's leadership.
• Fossil Group (FOSL) +20.2%: Shares jumped in after-hours trading following quarterly results that showed revenue of $271.2 million and a return to profitability. The watchmaker also raised its full-year revenue outlook to between $980 million and $990 million, reflecting improving margins and stronger operating performance.
• Rigetti Computing (RGTI) -3.4%: Shares declined after the quantum computing company reported quarterly revenue of approximately $1.4 million, significantly below analysts' expectations. Higher operating expenses and disappointing revenue guidance added to concerns about its near-term financial outlook.
• Teradyne (TER) +5.3%: Shares advanced after Jefferies initiated coverage with a Buy rating, highlighting the semiconductor testing equipment company's exposure to growing AI computing demand. The positive analyst assessment helped Teradyne participate in the broader semiconductor recovery.
• Applied Aerospace & Defense (AARD) -6.3%: Shares fell after the aerospace manufacturer reduced its full-year revenue forecast, disappointing investors. The weaker outlook raised concerns about the timing of customer orders and the company's near-term growth prospects.

CoreWeave Earnings Revive Confidence in AI Infrastructure

CoreWeave emerged as Wednesday's biggest technology catalyst after reporting quarterly revenue growth of 168% from a year earlier. The company also raised its annual revenue guidance and outlined financing arrangements designed to support its expanding data center operations. Its results provided a welcome contrast to recent concerns that AI infrastructure companies were taking on excessive debt without generating sufficient returns.

The optimism spread across semiconductor and data center stocks, with Micron, AMD, Broadcom and Marvell attracting renewed buying interest. Investors viewed CoreWeave's growing backlog as evidence that demand for AI computing capacity remains substantial despite recent market volatility. However, the company's projected capital expenditures of $37 billion to $39 billion also highlighted the enormous investment required to sustain that growth.

Nvidia Rebounds as Leadership Scrutiny Continues

Nvidia recovered Wednesday after losing substantial market value earlier in the week amid reports involving CEO Jensen Huang and an alleged Chinese intelligence contact. The company has hired outside legal counsel to investigate whether sensitive information was compromised, while analysts assess the potential consequences for its leadership and government relationships. Baird downgraded Nvidia to Neutral, citing uncertainty surrounding possible regulatory action and the outcome of ongoing investigations.

Despite those concerns, the broader recovery in AI stocks helped support Nvidia shares. The company remains a major supplier of processors used in advanced AI systems, making demand from cloud providers such as CoreWeave particularly important to its outlook. Investors will be watching whether the company can regain momentum as scrutiny of its leadership continues.

Inflation and Treasury Yields Keep Fed Concerns in Focus

Wednesday's gains came against a challenging backdrop for monetary policy after October's consumer price index rose 0.4%, exceeding economists' expectations. The stronger reading pushed Treasury yields higher Tuesday and increased expectations that the Federal Reserve could raise interest rates again in December. The benchmark 10-year yield briefly climbed above 5%, renewing concerns about borrowing costs and technology stock valuations.

The U.S. bond market was closed Wednesday in observance of Veterans Day, although stock exchanges remained open for regular trading. Investors will be watching whether Treasury yields resume their climb when bond trading reopens Thursday. Persistent inflation and the possibility of additional monetary tightening could limit the sustainability of Wednesday's technology-led rally.

Looking Ahead

Wall Street's immediate focus remains on whether the AI sector can sustain its recovery after several volatile sessions. CoreWeave's strong results have helped restore confidence in infrastructure demand, but investors will continue scrutinizing capital spending, financing costs, and developments surrounding Nvidia. Attention will also return to Treasury yields and the Federal Reserve's December meeting as markets digest October's inflation report. With technology stocks recovering but interest rate concerns unresolved, the next few sessions could determine whether Wednesday's gains mark the beginning of a broader rebound or another temporary recovery.