CoreWeave's stock rose by a quarter, sparking renewed interest in AI: The Nasdaq surged 1.6%

Renewed market interest in AI has boosted all major U.S. stock indices: investors expect that the tech giants, which have been the drivers of the bull market, still have room to grow, according to Bloomberg. The rally was triggered by strong earnings from the cloud-native company CoreWeave, which helped ease concerns about the continued funding of the AI boom. The company’s stock jumped 25%, marking its best performance since last June.

The Nasdaq Composite, which tracks technology stocks, jumped 1.6% at the close of trading on November 11. The S&P 500 broad-market index rose 1.3%. The Dow Jones Industrial Average gained 0.5%.

CoreWeave’s results boosted the entire sector: shares of data center operators, manufacturers of data storage and memory systems, and makers of chip manufacturing equipment and servers. The market value of CoreWeave’s closest competitor soared by 15%. The PHLX Semiconductor Index rose 5.7%, continuing its rally over the past three sessions. The general enthusiasm even gave a boost to Nvidia shares, which had been under pressure due to the espionage scandal surrounding the company’s CEO, Jensen Huang. During Wednesday’s trading session, Nvidia’s stock rose by more than 4%.

The VIX volatility index, considered Wall Street’s “fear gauge,” fell 10% and has dropped 38% over the past four trading sessions. This is the largest four-day decline since last April, when U.S. President Donald Trump’s decision to suspend the trade tariffs he had announced eased market concerns.

The broad rally in the stock market is giving investors confidence at a pace not seen in over a year, MarketWatch commented on the index’s decline. The rally in tech stocks offers hope that the sell-off in artificial intelligence stocks may be coming to an end, the publication notes. On Thursday, November 5, when a massive sell-off swept through the market, the VIX jumped by nearly 70%.

This news story is being updated.

This article was AI-translated and verified by a human editor