Wall Street indices rise as CoreWeave earnings ease AI spending concerns
The S&P 500 and Nasdaq climbed more than 1 per cent on Wednesday following positive results from neocloud firm CoreWeave.
The S&P 500 and the tech-heavy Nasdaq Composite climbed more than 1 per cent on Wednesday, according to the Economic Times. The gains followed solid earnings from neocloud firm CoreWeave, which helped ease investor concerns regarding artificial intelligence (AI) expenditure.
CoreWeave shares rose 25.3 per cent to a near two-week high. The company stated it would become profitable on an adjusted basis in the first half of 2028, aiming to reassure investors that customer commitments can support its debt-fueled expansion.
The results improved sentiment for AI infrastructure stocks, with Nebius Group rising 17.4 per cent and Applied Digital increasing by 8.6 per cent. Additionally, the Philadelphia SE Semiconductor index jumped 7 per cent to a one-week high, while Marvell Technology and Micron rose 12.2 per cent and 13.3 per cent respectively.
Nvidia rose 3.8 per cent after losing about $430 billion in the previous two sessions. The previous decline followed questions regarding CEO Jensen Huang's relationship with a businesswoman alleged to be a Chinese spy.
At 11.44 am ET, the Dow Jones Industrial Average rose 51.98 points, or 0.10 per cent, to 52,283.87. The S&P 500 gained 93.80 points, or 1.25 per cent, to 7,614.73, while the Nasdaq Composite added 463.99 points, or 1.85 per cent, to 25,529.87.
