Stocks rally as CoreWeave soothes, bonds reel on rate hike fears
SPY•Asian stocks rose after CoreWeave reported higher third-quarter revenue and said it expected to be profitable in the first half of 2028. Hotter-than-expected US core inflation sent bond yields higher and put a half-point December rate hike in play.
1. Stocks gain on CoreWeave
Asian stocks rallied after CoreWeave's results eased AI bubble concerns, with its shares jumping 8% after hours. Nasdaq futures rose 1.4% and S&P 500 futures gained 0.6%; Japan's Nikkei climbed 1.5%, while the broad Asia-Pacific share index rose 1.9%. CoreWeave said it expected to be profitable in the first half of 2028 as third-quarter revenue soared.
2. Rate hike concerns rise
US core inflation rose 0.3% in October, above the 0.2% forecast. Fed officials' hawkish comments sent futures pricing a quarter-point December rate increase as essentially certain, with a 10% chance of a 50-basis-point move. Two-year Treasury yields surged 18 basis points overnight, and bond markets in Japan and Australia also sold off.
3. Dollar firms, gold rebounds
The dollar gained 0.5% overnight against major peers and edged up further on Wednesday. Gold fell 2.6% overnight before recovering 0.8% to $4,061.56 an ounce, while Brent crude rose 0.8% to $92.26 a barrel.
