CoreWeave surges 24.71% and Micron jumps 11.89% as customer prepayments and robust revenue outlook restore investor sentiment.
Markets eye the Oct. 13 producer price index and Nov. 17 Nvidia earnings to gauge inflation pressures and AI demand.
Wall Street rebounded after a single-day hiatus, driven largely by artificial intelligence-related stocks. CoreWeave's upwardly revised revenue outlook and investment financing plans helped ease mounting concerns over AI infrastructure spending.
On the 11th (local time), the Dow Jones Industrial Average closed up 254.60 points (0.49%) at 52,486.49. The S&P 500 rose 98.45 points (1.31%) to 7,619.38, while the Nasdaq Composite advanced 400.31 points (1.60%) to finish at 25,466.19.
At the center of the rebound was AI cloud computing firm CoreWeave, whose shares surged 24.71% to close at $60.77. The company reported third-quarter revenue of $3.661 billion, up 168% year-on-year, and raised its full-year revenue forecast to between $13 billion and $13.3 billion.
The company's funding strategy also drew strong market attention. CoreWeave projected that approximately $9.0 billion in customer prepayments and deposits would flow in over the next three months. It plans to support business expansion by leveraging operating cash flow and borrowings secured by customer contracts.
Profitability pressures persist. Third-quarter net loss widened to $709 million from $110 million in the same period last year, and the company projected fourth-quarter interest expenses between $1.05 billion and $1.15 billion. Despite these financial burdens, Friday's sharp stock rally reflected expectations for sustained growth and investment viability.
The recovery in sentiment toward AI infrastructure investment spilled over into semiconductor stocks. Micron surged 11.89% to $811.30, and Nvidia rose 2.87% to $173.73. The Philadelphia Semiconductor Index jumped 5.66% to 10,564.11, outperforming major indexes. Conversely, Microsoft fell 2.26%, weighed down by concerns over intensifying competition in enterprise software after Anthropic unveiled productivity tools such as Claude Sheets and Claude Whiteboards the previous day.
International oil prices climbed after Iran announced it would not permit the removal of enriched nuclear materials from the country. Brent crude futures rose 1.39% to settle at $92.76 a barrel, while West Texas Intermediate (WTI) futures gained 0.57% to $86.53 a barrel. The U.S. bond market was closed in observance of Veterans Day.
The market's upcoming catalysts include the October Producer Price Index (PPI) scheduled for the 13th and Nvidia's earnings report due after the close on the 17th. Investors will closely watch the PPI to determine whether inflationary pressures persist, and Nvidia's results and outlook to confirm the sustainability of AI demand revived by CoreWeave.
