US STOCKS-Stocks climb as CoreWeave results ease AI spending concerns

US stocks climbed on Wednesday, with the S&P ‌500 ​and the Nasdaq each rallying more than 1% as earnings from neocloud firm CoreWeave cooled investor concerns about the durability of the AI trade, while Nvidia stabilized after two straight sessions of sharp declines. Battered CoreWeave shares surged more than 20% to the highest in nearly two weeks, set for their biggest daily percentage gain in ‌more than three months. 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 improvedacross AI infrastructure stocks, with Nebius Group and Applied Digital each jumping by at least 10%. Nvidia rose 3.8% after shedding about $430 billionof market capitalization in the previous two sessions as investors worried about CEO Jensen Huang's relationship with a businesswoman alleged to be a Chinese ‌spy.

Equities have been volatile in recent days. Investors have expressed concerns about more regulation in the AI space after sweeping Democratic victories in the US midterm elections last week. That, and worries about Nvidia's leadership, pressured ‌one of the biggest pillars of the current bull market. Stocks also have been choppy as investors have been encouraged by cooling oil prices but concerned by hot inflation data that pushed Treasury yields sharply higher.

"Everybody's looking for a canary in a coal mine every single day, every minute of every day, and then they're reacting every single day," said Thomas Martin, senior portfolio manager at Globalt in Atlanta. "What we've seen is that you've gone back and forth, back and forth, back and forth between AI is good, AI is not so good. We're ⁠worried about it, ​then oh, it's great."

The Dow Jones Industrial Average rose ⁠175.31 points, or 0.34%, to 52,407.20, the S&P 500 gained 99.86 points, or 1.33%, to 7,620.79 and the Nasdaq Composite gained 448.03 points, or 1.80%, to 25,513.91. The Philadelphia SE Semiconductor index jumped 7% to a one-week high, as every component of the index showed gains.

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 even 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.

Recent pronounced selling pressure prompted some investors to buy the dip, but early indicators show it is too soon to sound the all-clear. The S&P ⁠500 technology index, up nearly 4% and on track for its biggest daily percentage gain since August 4, was the best-performing of the 11 major S&P sectors.

The CBOE Volatility Index, Wall Street's fear gauge, fell for the fourth straight session and was last at 17.63 after hitting a ⁠more ​than seven-month high of 28.36 last week. Investors also examined the terms set by Anthropic on Tuesday for its blockbuster initial public offering. The Claude chatbot creator is aiming for a valuation of up to $1.4 trillion in the share sale.

Vanda Research said in a note that the IPO could attract record buying by retail investors, with the potential to surpass SpaceX as one of the biggest single-day retail purchases ever. Hotter-than-expected inflation dataon Tuesday cemented market expectations the ⁠US Federal Reserve would raise interest rates next month, with traders now fully pricing in a hike of at least 25 basis points and a 13.2% chance of an increase of 50 basis points, according to ⁠CME FedWatch.

Comments from multiple Fed officials also suggested the ⁠US central bank was open to a more aggressive path of rate hikes as price pressures worsen. The US bond market is shut on Wednesday for Veterans Day.

Advancing issues outnumbered decliners by a 1.3-to-1 ratio on the NYSE and by a 1.67-to-1 ratio on the Nasdaq. The S&P 500 posted 11 new 52-week highs and no new ‌lows, while the Nasdaq Composite recorded 65 ‌new highs and 125 new lows.