Stocks rise on tech gains; Nvidia falls after hours

Major stock indexes climbed on Wednesday, propelled by a surge in tech shares following a positive report from CoreWeave, which bolstered confidence in the AI sector, and a strengthening dollar. Nvidia's shares surged 2.9 percent, partially recovering from recent sharp declines, but they tumbled 8 percent after hours as the Wall Street Journal reported via anonymous sources that Nvidia's board was preparing to remove CEO Jensen Huang due to two extramarital affairs.

The Nasdaq and S&P 500 both closed the regular trading session more than 1 percent higher, with the S&P 500 technology sector up 2.7 percent. CoreWeave shares surged 24.7 percent on Wednesday, citing an expected profitability by 2028 amid debt-driven expansion concerns. Strategists noted investors are still processing the impact of the midterm elections, which saw Democrats gain control of Congress, alongside Nvidia-related news.

Nvidia's leader, Jensen Huang, is credited with driving the company's remarkable growth. Bruce Zaro, a managing director at Granite Wealth Management, highlighted the uncertainty surrounding Huang's potential ouster. The Dow Jones Industrial Average added 254.60 points, or 0.49 percent, to 52,486.49; the S&P 500 rose 98.45 points, or 1.31 percent, to 7,619.38; the Nasdaq Composite climbed 400.31 points, or 1.60 percent, to 25,466.19.

Global stocks, as measured by MSCI, increased 12.41 points, or 1.12 percent, to 1,121.15. The STOXX 600 index in Europe also rose by 0.7 percent, with investors re-entering AI-linked stocks following a recent sector-wide decline in Asia. Treasury market activity was suspended on Wednesday due to Veterans Day, following a significant 2-year yield jump since April 2025.

European yields stabilized on Wednesday. Oil prices increased after Iran's security chief stated Tehran would not permit any enriched nuclear material to leave the country. The US Treasury market closed for Veterans Day on Wednesday, a day after 2-year yields experienced their largest one-day increase since April 2025. Euro zone yields remained stable on Wednesday.

Oil futures climbed by 1.39 percent to settle at $92.76, while US West Texas Intermediate crude gained 0.57 percent to $86.53. The US dollar continued its upward trajectory following hotter-than-expected inflation data on Tuesday, which heightened expectations for an interest rate hike from the Federal Reserve next month. Approximately 11 percent of traders believe a half-percentage-point increase is likely based on the CME FedWatch tool.

The dollar index, which gauges the greenback against a basket of currencies, including the yen and the euro, rose 0.7 percent to 102.92, with the euro falling 0.68 percent to $1.1087. Against the Japanese yen, the dollar strengthened by 0.69 percent to 159.83.