Global markets: Tech lifts world stocks as CoreWeave revives AI trade
SPY•Technology shares lifted global markets as CoreWeave said it expects to become profitable in 2028, sending its shares up 16% in premarket trading and Nasdaq futures up 2%. Investors also weighed expectations for further Federal Reserve rate hikes after US core inflation rose 0.3% in October.
1. AI shares rebound
Technology stocks lifted global shares as investors returned to AI-linked stocks after last week’s sector selloff. The pan-European STOXX 600 rose 0.3%, nearing its August record high, while Nasdaq futures jumped 2% and S&P 500 futures gained 0.9%.
2. CoreWeave outlook
CoreWeave said it expects to become profitable in 2028, easing immediate concerns about whether demand can support its debt-fuelled expansion. Its shares rose 16% in premarket trading. An investment executive said the results confirmed strong AI demand but noted questions remain about the sustainability of CoreWeave’s debt burden.
3. Rate and commodity moves
US core inflation rose 0.3% in October, above the 0.2% forecast, and markets priced in a 10% chance of a 50-basis-point Fed rate hike in December. Asian bonds came under pressure, the dollar reached a four-week high, gold rose 0.4% to $4,047 an ounce and Brent crude gained 1.4% to $92.8 a barrel.
