CoreWeave Revives AI Investment Sentiment

Global equity markets advanced on Wednesday as investors returned to technology shares, looking beyond expectations of further Federal Reserve tightening and focusing on renewed confidence in artificial intelligence demand.

The pan-European STOXX 600 gained 0.3%, approaching its August record high. Nasdaq futures jumped 2%, while S&P 500 futures advanced 0.9%, following positive developments from CoreWeave.

The AI cloud computing company said it expects to become profitable in 2028, helping ease concerns that demand may not be sufficient to support its substantial infrastructure investments and debt obligations. Its shares climbed 16% in US premarket trading, recovering from an 18-month low reached the previous week.

The improvement in sentiment followed a sharp selloff in AI-related stocks driven by concerns that infrastructure spending could slow. However, investors continue to question whether CoreWeave can sustain its expansion while managing its significant debt burden.

Asian Markets Extend Technology-Led Recovery

Asian equities recorded a third consecutive session of gains. MSCI’s broadest index of Asia-Pacific shares rose 1.5%, supported by a 2.6% advance in South Korea’s KOSPI and a 3.6% increase in Taiwan’s benchmark index. Japan’s Nikkei gained 1.3%.

The recovery extended beyond major AI beneficiaries, with investors showing renewed interest in value-oriented sectors and European equities. Continued earnings growth has also helped support equity valuations despite pressure on parts of the technology sector.

Nvidia shares moved higher in premarket trading following two sessions of steep losses that erased approximately $430 billion in market value. The decline followed reports that CEO Jensen Huang may have been targeted by a foreign intelligence operation linked to an alleged Chinese spy. Beijing rejected the accusations, while Nvidia said its board had no reason to believe national security or company secrets had been compromised.

Anthropic’s planned listing at a $1.4 trillion valuation also remained in focus, presenting another test of investor appetite for major AI businesses.

Federal Reserve Rate Expectations Remain Elevated

The equity rebound came despite growing concerns about US monetary policy. October core inflation increased 0.3% month over month, exceeding the 0.2% expected by economists.

Federal Reserve Governor Christopher Waller said the reading would lead him to consider a 50-basis-point increase in December. Dallas Fed President Lorie Logan called for two additional rate increases, potentially at a faster pace, while Chicago Fed President Austan Goolsbee highlighted persistent inflation risks. Philadelphia Fed President Anna Paulson favored a gradual approach.

Markets now consider a quarter-point increase in December essentially certain, while assigning a 10% probability to a larger half-point move.

The comments have intensified concerns that inflation expectations could become entrenched, potentially requiring a more aggressive tightening cycle.

Bonds, Dollar and Commodities React to Rate Repricing

US Treasury markets were closed Wednesday for the Veterans Day holiday following Tuesday’s sharp selloff, when the two-year yield surged 18 basis points.

Asian bonds remained under pressure. Japan’s 10-year government bond yield increased 10 basis points to 2.793%, while Germany’s 10-year yield remained broadly unchanged near 3.3%.

The US dollar index reached a four-week high around 102.5, gaining 0.3% during the session. The Australian dollar steadied after falling nearly 0.9% on Tuesday as markets anticipated potential rate cuts in 2027.

Gold recovered 0.4% to $4,047 per ounce after losing 2.6% in the previous session. Brent crude advanced 1.4% to $92.80 per barrel, rebounding from two-month lows as tensions surrounding Iran reduced expectations of an imminent de-escalation.

What Investors Should Watch Next

The sustainability of the AI recovery will depend on whether companies can translate infrastructure spending into revenue and profitability. CoreWeave’s 2028 profitability target and Anthropic’s planned listing will provide important reference points for assessing investor confidence in the sector.

At the same time, inflation data and Federal Reserve guidance remain critical to the broader market outlook. Higher interest rates could continue to pressure bond valuations, technology stocks and other rate-sensitive assets, even as corporate earnings support equity demand.