Stocks gain as CoreWeave reignites AI trade
SPY•Stocks rose as investors focused on renewed AI optimism after CoreWeave said it expected to become profitable in 2028. The STOXX 600 gained 0.4%, Nasdaq futures rose 1.6% and S&P 500 futures added 0.7%.
1. Stocks rise on AI optimism
European and Asian shares advanced on Wednesday, with technology stocks leading gains in Asia. The STOXX 600 rose 0.4%, while MSCI’s broadest Asia-Pacific share index gained 1.5%; Nasdaq futures rose 1.6% and S&P 500 futures gained 0.7%.
2. CoreWeave lifts sentiment
CoreWeave said it expected to become profitable in 2028, easing concerns about whether demand could support its debt-fuelled expansion. Its shares rose 16% in U.S. premarket trading. An investor quoted in the article said demand for AI remained strong but raised questions about the sustainability of CoreWeave’s debt burden.
3. Rate expectations shift
Investors also weighed expectations of further Federal Reserve rate increases after October core inflation came in at 0.3% monthly, above the 0.2% forecast. A quarter-point rate increase in December was essentially priced in, with a 10% risk of a 50-basis-point move. Asian bonds came under pressure, while the dollar rose and gold recovered 0.4% to $4,049 an ounce.
