CoreWeave results lift tech stocks as dollar gains
Stock markets rose on Wednesday on renewed optimism over AI following strong results from data centre operator CoreWeave, while the dollar extended a rally on expectations for at least one more Federal Reserve interest rate hike. Wall Street's main indices enjoyed a buoyant session led by the tech-heavy Nasdaq, which finished up 1.6 percent. "The primary catalyst for the upside action is,…
Tech stocks enjoyed a strong rally on Wednesday, driven by positive results from data center operator CoreWeave and a strengthening US dollar. Wall Street's main indices, particularly the tech-heavy Nasdaq, experienced a robust day, closing up 1.6 percent. CoreWeave's strong third-quarter earnings, which surpassed expectations, and its optimistic outlook helped to ease concerns over its heavy debt load, leading to a surge in its shares by nearly 25 percent.
This positive sentiment spilled over to other AI-related sectors, such as hardware, software, and semiconductor stocks. Despite the Federal Reserve's indication that it would raise interest rates in December to combat inflation, US equities gained ground due to these favorable developments. The US dollar also saw a notable rise, reaching its highest level since May 2025, following a hint from a top Fed official about a potential 0.5 percentage point rate increase next month.
The tech sector's rebound can be attributed to bargain-hunting and the belief that previous fears about AI regulation may have been overstated. Overall, the market is shifting its focus to AI's revenue potential and upcoming mega cap IPOs as the week progresses.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
