Technology shares drove Wednesday's broad rally, highlighted by CoreWeave projecting it will reach profitability by 2028. Market sentiment was disrupted after hours following reports that Nvidia's board plans to oust chief executive Jensen Huang over extramarital affairs, including one tied to an alleged foreign spy. Meanwhile, the U.S. dollar gained strength as hotter-than-expected inflation data fueled expectations for an upcoming Federal Reserve rate hike. Crude oil also pushed higher following restrictive nuclear policy announcements from Iran.
Key points
Surging demand projections in the artificial intelligence sector continue to drive major…: Surging demand projections in the artificial intelligence sector continue to drive major U.S. equity benchmark gains.
Executive instability at key semiconductor firms presents immediate downside risks for br…: Executive instability at key semiconductor firms presents immediate downside risks for broader technology market momentum.
Persistent inflation pressures and geopolitical developments in Iran are pushing up both…: Persistent inflation pressures and geopolitical developments in Iran are pushing up both the dollar and global energy prices.
Sources checked by our analysis pipeline: 1
NEW YORK/MILAN, Nov 11 : Major stock indexes rose on Wednesday, led by gains in technology shares after an upbeat report from CoreWeave lifted optimism about the AI trade, and the dollar strengthened.
Shares of Nvidia gained 2.9 per cent, recovering some of their recent sharp losses, but the stock fell 8 per cent after the bell after the Wall Street Journal, citing people familiar with the matter, reported Nvidia's board was preparing to oust CEO Jensen Huang after he had two extramarital affairs, including one with a suspected Chinese spy.
The Nasdaq and S&P 500 each ended the regular session more than 1 per cent higher, and the S&P 500 technology sector was up 2.7 per cent. Tech shares had been sold off in the wake of the US midterm elections last week amid worries about increased AI regulation and the sustainability of the AI rally.
CoreWeave shares finished up 24.7 per cent on Wednesday. The company said it expected to become profitable in 2028, easing concerns that demand may not be strong enough to support its debt-fueled expansion.
The specialized cloud computing provider is targeting a major debt transaction to bolster its financial position. Securing access to institutional credit marks a significant step for the company as it scales infrastructure operations. The influx of capital is expected to support operational expansion amid surging industry requirements.
Fresh eligibility rules targeting non-operating businesses have triggered the exclusion from global equity benchmarks, taking effect at the close of November 30. The shift threatens a core corporate financing model that depends heavily on issuing equity to accumulate cryptocurrency holdings. Analysts warn the change could spark billions of dollars in forced share sales as tracking funds rebalance.
Investors sold off Strategy equity following an official announcement regarding the firm's standing in prominent market indexes. The confirmed exclusion from this key U.S. index triggered an immediate downward move in market trading. This removal highlights the direct negative impact that benchmark adjustments by index providers can have on underlying shares.