Wall Street's main indexes climbed on Wednesday, 11 November, led by technology shares, after an upbeat outlook from CoreWeave revived investor confidence in demand for artificial intelligence. The Nasdaq Composite gained 400.31 points, or 1.60%, to close at 25,466.19, while the S&P 500 rose 98.45 points, or 1.31%, to 7,619.38. The Dow Jones Industrial Average added 254.60 points, or 0.49%, to 52,486.49.

CoreWeave shares surged 24.7% after the company said it expected to become profitable in 2028, easing worries that demand would not support its debt-funded expansion. The rally spread across the AI trade: Arm rose 12.05%, Micron gained 11.89%, Dell climbed 11.75% and Super Micro Computer added 9.5%. The S&P 500 technology sector rose 2.7%, recovering from selling pressure that followed last week's US midterm elections.

Inflation keeps rate-hike bets alive

The rebound came despite hotter-than-expected US inflation data released on Tuesday, with headline consumer prices up 0.4% on the month and core prices up 0.3%, both above forecasts. Hawkish comments from Federal Reserve officials strengthened expectations of an interest rate increase next month, and the US dollar strengthened. The US 10-year Treasury yield stood at 4.99%, and the bond market was closed on Wednesday for the Veterans Day holiday.

Nvidia clouds the mood after hours

Nvidia rose 2.9% in the regular session but fell about 8% in after-hours trading after The Wall Street Journal reported that its board was preparing to oust chief executive Jensen Huang. Nasdaq futures slipped as traders digested the report. Investors now look to Thursday's weekly jobless claims and earnings after the close from Cisco and Applied Materials, the next test of AI spending. Investor's Business Daily noted the Nasdaq closed back above its 200-day moving average.