Wall Street opened on a positive note on Wednesday as strong third-quarter results from artificial intelligence (AI) cloud computing company CoreWeave mitigated concerns over rising AI spending and brought the investors back towards technology stocks.
The Dow Jones gained 27.13 points or 0.05%, which translated to 52,259.02 at the opening bell. The S&P advanced 73.02 points, or 0.97%, to 7,593.95, while the tech-heavy Nasdaq climbed 385.17 points, or 1.54%, to 25,451.05.
CoreWeave’s earnings report prompted the recovery in technology stocks. The company’s strong results assuaged investors’ doubts about whether investing heavily in AI infrastructure would yield them sufficient returns.
Which stocks are gaining on Wall Street?
Several technology and data storage stocks were among the top gainers on the S&P 500 during early trading. Dell Technologies shares advanced over 10%, while Seagate Technology also gained over 10%. Oracle rose 6.66% (Trending at over 7% at the time of writing this piece) and Super Micro Computer climbed 6.44%.
CoreWeave shares jumped around 16% in premarket trading after the company indicated that it expects to become profitable in 2028.
Nvidia shares recover as AI stocks rebound
Nvidia shares also moved higher in premarket trading, recovering some of their recent losses. The chipmaker had lost around $430 billion in market value over two sessions amid concerns surrounding CEO Jensen Huang and reports of an alleged foreign intelligence operation linked to a Chinese businesswoman.
Beijing has rejected the allegations, calling them groundless. Nvidia, meanwhile, has said its board has no reason to believe that company secrets or US national security information have been compromised.
Investors are also keeping an eye on Anthropic’s planned stock market listing, which is expected to value the AI company at around $1.4 trillion. The listing is being viewed as an important test of investor appetite for AI businesses.
US inflation and Fed rate outlook remain in focus
Despite the recovery in technology stocks, investors remain concerned about the US inflation outlook and the Federal Reserve’s next policy move.
Data released on Tuesday showed that US core inflation increased 0.3% month-on-month in October, higher than the market expectation of 0.2%.
The latest inflation reading, along with hawkish comments from Federal Reserve officials, has strengthened expectations of another interest rate hike in December. Markets are now pricing in a 10% probability of a larger 50-basis-point increase.
Investors will continue to track inflation developments and comments from Fed officials while assessing whether the recovery in AI stocks can sustain its momentum.