Closing Bell: Rotation Trims AI; Dow Holds Gains Ahead of CSCO & Housing Checkup

Key Points

Rotation without panic: U.S. equities finished mixed. The Dow outperformed on strength in industrials, financials, and energy, the S&P 500 ended roughly flat to slightly higher, while the Nasdaq slipped as investors continued to rotate out of crowded AI and high-multiple software into more cyclicals and cash-generative names. Small caps were little changed, stabilizing after prior underperformance and signaling a cautious but not collapsing risk tone.

• Rates & vol: With the cash Treasury market closed for Veterans Day, traders leaned on futures and global curves. The implied 10-year yield hovered near ~4.1%, and the VIX eased into the high-17s—suggesting calmer index-level risk even as single-stock dispersion in tech and AI remained elevated. 

• AI & growth trade recalibration: High-valuation AI infrastructure and software names saw additional profit-taking, while companies with clear visibility on margins, cash flow, and pricing power held up—reinforcing a market that demands proof, not just AI headlines.

Market Recap

Cyclicals and value pockets benefited from progress on federal funding and the absence of fresh rate shocks. Mega-cap tech and AI, after a strong run, remained the preferred funding source for investors rebalancing toward balance sheets, dividends, and real-economy exposure.

• Leaders: Financials, industrials, select energy and materials linked to infrastructure and global demand.

• Laggards: Expensive software, AI-adjacent names, and speculative growth where multiples are still rich.

• Defensives: Staples, utilities, and healthcare traded mixed as investors saw less need for outright safety with volatility contained.

Big picture: the tape is tilting toward quality and durability while shaving excess from the AI story stocks.

Earnings Snapshot: CRWV & NBIS

CoreWeave (CRWV): AI infra, strong growth with new question marks

CoreWeave’s latest results highlighted the tension inside the AI build-out trade. Q3 revenue more than doubled Y/Y to roughly $1.36B, topping expectations, and backlog growth underscored its role as a key GPU cloud provider. But management trimmed 2025 revenue guidance and flagged data-center capacity delays tied to a third-party provider, which pushed out some revenue conversion and forced a rethink of capex timing. Shares sold off on the outlook reset and execution risk, showing how quickly the market punishes any crack in the “flawless AI hyper-growth” narrative—even when current-quarter numbers are strong. 

Nebius Group (NBIS): growth story under the microscope

Nebius (NBIS), reporting before the bell, sits at the crossroads of cloud, data, and AI infrastructure. Consensus centered on continued top-line expansion and improving profitability, but with investors now laser-focused on capital intensity, customer concentration, and sustainable margins, the bar for a positive reaction is high. Any sign of slower growth, rising spend, or hazy guidance risks NBIS being grouped with other “show me” AI names, while a clean beat-and-raise with disciplined capex could position it as one of the more credible second-tier AI platforms. 

Taken together, CRWV and NBIS illustrate the new regime: AI infrastructure names must pair explosive demand with crisp execution and capital discipline, otherwise they become funding sources in this rotation.

Key Economic Events for Tomorrow (Wed, Nov 12, 2025) — ET

Focus shifts to housing and consumer sensitivity to rates plus weekly labor signals:

• 7:00 a.m.: MBA Mortgage Applications – fresh read on purchase and refi demand after recent rate volatility; key for gauging housing momentum and household interest-rate fatigue. 

• 8:30 a.m.: Weekly Initial Jobless Claims – ongoing check on softening labor demand.

• 10:30–11:00 a.m.: EIA Energy Data (Crude & Nat Gas) – implications for gasoline, headline inflation optics, and energy sector positioning.

Notable Earnings

Pre-market tomorrow (Wed, Nov 12) – selective: ONON, CRCL, TDG

Post-market tomorrow (Wed, Nov 12) – selective: CSCO

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.