Everyone loves CoreWeave as inflation and hawkish Fed comments weigh on markets
CRWV•Hot US inflation and hawkish Fed comments pushed Treasury yields higher, while CoreWeave revenue jumped 168% and its shares rose 8% in extended trading. Nasdaq futures gained 1.3% as AI-linked stocks steadied, and European stock futures rose 0.6%.
1. Rates outlook hardens
US core inflation came in at 0.3%, a level Fed Governor Waller had said would prompt him to consider a 50-basis-point hike in December. Two-year Treasury yields surged 18 basis points overnight, and a quarter-point December hike was fully priced in, with markets assigning a 10% chance of a 50-basis-point move and pricing a third rate rise by mid-next year.
2. AI shares find support
CoreWeave revenue jumped 168%, sending its shares up 8% in extended trading after a 40% slide over the past month. The AI cloud company forecast a path to profitability in the first half of 2028. Nvidia’s selloff steadied after two days of steep losses that erased $430 billion from its market value; Nasdaq futures rallied 1.3%, while Taiwanese and South Korean shares rose 2.7% and 2.1%.
3. Markets balance competing signals
The dollar surged, and the Australian dollar fell nearly 1% to a seven-month low as traders bet the Reserve Bank of Australia was done tightening after five rate hikes this year. SoftBank shares trimmed early losses to 1% after the company reported a $7 billion second-quarter loss tied to US data-centre costs. European pan-region stock futures rose 0.6%.
