US stocks end higher as CoreWeave results ease AI spending worries
SPY•The S&P 500 rose 1.29% and the Nasdaq gained 1.59% as CoreWeave’s results and its target to become profitable in the first half of 2028 helped ease concerns about AI spending. CoreWeave shares surged more than 20%, while Nvidia advanced after losing about $430 billion in market value over two sessions.
1. Stocks rebound
US stocks closed higher Wednesday, with the S&P 500 and Nasdaq each gaining more than 1% as CoreWeave’s results helped cool concerns about the durability of the AI trade. CoreWeave shares rose more than 20% to their highest intraday level in nearly two weeks after the company said it targets adjusted profitability in the first half of 2028.
2. AI shares advance
The company said strong demand and customer commitments could support its debt-fueled expansion. Nebius Group and Applied Digital also rose sharply, while Nvidia advanced after shedding about $430 billion in market value over the previous two sessions.
3. Market factors
The S&P 500 gained 1.29% to 7,617.84, the Nasdaq rose 1.59% to 25,464.57, and the Dow added 0.47% to 52,476.92. Hotter-than-expected inflation data had pushed traders to fully price in at least a 25-basis-point Federal Reserve rate hike next month; the Philadelphia semiconductor index rose as all its components advanced.
