Closing Bell: Stocks Rally as CoreWeave Results Revive the AI Trade

Stocks rallied Wednesday, led by tech. The Nasdaq-100 (NDX) climbed 2.28% and the S&P 500 (SPX) gained 1.31%, while the Russell 2000 (RUT) rose 0.88% and the Dow Jones Industrial Average ($DJI) added 0.49%. AI stocks rebounded sharply after CoreWeave’s better-than-expected earnings eased worries that the AI theme was at risk.

Semiconductors led the countertrend tech rally, and the PHLX Semiconductor Sector Index (SOX) jumped 5.66%. Within the S&P 500, information technology gained 2.71%, energy rose 1.83% and industrials advanced 1.32%. Consumer discretionary was the only sector to finish lower, dragged down by a 1.9% drop in Amazon (AMZN).

CoreWeave (CRWV) Soars 25% on Q3 Beat, Raised Guidance and 2028 Profitability Target

CoreWeave shares closed up more than 25% after third-quarter results beat consensus on every major line. Revenue was $3.66B, up roughly 170% y/y, against $3.55B expected, and adjusted EBITDA was $2.26B (62% margin) against $2.04B expected, while the $529M adjusted net loss came in narrower than the $676.86M forecast. Management raised FY26 revenue guidance to $13.0B–$13.3B from $12.4B–$13.2B and adjusted operating income guidance to $1.275B–$1.375B, and set FY26 capex at $37B–$39B, with the low end up $2B because capacity is reaching customers sooner than planned. The company expects the loss to narrow meaningfully in 2027 before adjusted net income turns positive in H1 2028 and for full-year 2028.

Baird Downgrades Nvidia (NVDA) to Neutral, Cuts Target to $200

Baird cut Nvidia to Neutral from Outperform and lowered its price target to $200 from $500. The firm is holding back its 2027 data-center forecasts because visibility has dropped, mainly on supply, though demand could also soften. Baird sees hyperscaler capex growth slowing to about 40% or less in 2027. H300 lead times are still stretched and demand still exceeds supply, but the firm flagged timing risks and said uncertainty over CEO tenure also supports the Neutral rating.

U.S. Dollar Index Breaks Out to One-Year High on Hawkish Fed Repricing

The U.S. Dollar Index rose almost 0.7% to a one-year high as markets brace for the FOMC to put more rate hikes on the table. Inflation data keeps coming in hotter than expected, and commentary from FOMC members has turned more hawkish. The CME FedWatch Tool now indicates a 12.7% chance of a 50-basis point hike in December. That is still a small chance, but a week ago the market saw no chance of a 50-basis point move at all.

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