By Niket Nishant and Utkarsh Hathi
Nov 11 (Reuters) – Futures tracking the S&P 500 and the Nasdaq 100 climbed on Wednesday after CoreWeave’s strong earnings eased investor concerns over excessive AI spending.
CoreWeave’s shares jumped more than 13% in premarket trading after the company said it would become profitable in the first half of 2028 on an adjusted basis, as the battered neocloud firm seeks to reassure markets that strong demand and customer commitments would support debt-fueled expansion.
Equities have been caught in a tug of war this week as worries over slower data center deployment, higher interest rates and Nvidia’s troubles are pitted against an appetite to buy the dip.
At 06:39 a.m. ET, Dow E-minis rose 58 points, or 0.11%, S&P 500 E-minis gained 65 points, or 0.86%, and Nasdaq 100 E-minis added 527.5 points, or 1.9%.
“I expect continued investments on AI infrastructure, which will drive share prices higher in time, even though multiples are compressed because of concerns over politics,” said Eric Schiffer, chairman of The Patriarch Organization, a Los Angeles-based family office.
Shares of Nvidia jumped 5.2% in premarket trading after shedding about $430 billion in the last two sessions as questions about CEO Jensen Huang’s relationship with a businesswoman alleged to be a Chinese spy roiled shares.
Other chipmakers also rebounded, with Marvell Technology and Micron up 8% and 6.8%, respectively.
Investors parsed the terms set by Anthropic on Tuesday for its blockbuster initial public offering. The Claude chatbot creator is aiming for a valuation of up to $1.4 trillion in the share sale.
RATE FEARS LINGER
Hotter-than-expected inflation data on Tuesday reinforced expectations that the US Federal Reserve would raise interest rates next month. US consumer prices increased more than expected in October amid higher food and accommodation costs, data showed.
Traders see a hike next month as a certainty, with an 11.5% chance of a half-percentage-point increase, according to the CME FedWatch tool.
The central bank should consider raising borrowing costs by 50 basis points if October inflation worsened, Fed Governor Christopher Waller said before the CPI report. A tamer approach risks hurting the Fed’s inflation-fighting credibility, he said.
“While a December rate hike now appears almost fully priced in, the bigger concern is that investors may have underestimated how much further the Fed will need to tighten,” said Daniela Hathorn, senior market analyst at Capital.com.
The US bond market was shut on Wednesday for the Veterans Day holiday.
(Reporting by Niket Nishant and Utkarsh Hathi in Bengaluru; Editing by Shinjini Ganguli and Pooja Desai)
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