US Stocks Rebound as CoreWeave Earnings Revive the AI Trade — Nasdaq Gains 1.6%

US stocks rebounded on Wednesday, November 11, as strong earnings from CoreWeave revived the AI trade and helped investors look past a hot October inflation report. The Nasdaq Composite jumped 1.6% to 25,466.19, the S&P 500 rose 1.31% to 7,619.38, and the Dow Jones Industrial Average added 0.49% to 52,486.49. CoreWeave soared 24.71% after topping earnings forecasts and raising its guidance, while Nvidia gained 4.5% and Micron 5.6%. The Federal Reserve is now expected to hold interest rates steady in December, with a hike on the table for early 2027.

Nahid Joy

Nov 12, 2026 - 09:30

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A wide elevated view of the New York Stock Exchange trading floor during a busy session, with circular trading posts lined with monitors showing market data, large blue illuminated NYSE signs overhead, American flags, and traders in business attire working at desks across the wooden floor.

US Stocks Rebound as CoreWeave Earnings Revive the AI Trade — Nasdaq Gains 1.6%

US stocks rebounded sharply on Wednesday, November 11, as blockbuster earnings from CoreWeave revived the AI trade and helped Wall Street look past a hot October inflation report. The Nasdaq Composite jumped 1.6% to close at 25,466.19, the S&P 500 rose 1.31% to 7,619.38, and the Dow Jones Industrial Average gained 0.49% to 52,486.49. The rally came a day after a sharp sell-off, when the Nasdaq had fallen 0.7% to 25,065.88 on the same inflation data and Nvidia had slid 5.5% amid a growing scandal involving the chip giant's CEO.

The immediate trigger was CoreWeave. The AI infrastructure company reported third-quarter results that beat expectations and raised its full-year revenue guidance, lifting its shares 24.71% to $60.77 in regular trading, with another gain in after-hours trading. CoreWeave's success gave investors a reason to buy back into AI stocks that had been beaten down earlier in the week, and the buying spread across the sector.

The AI trade fights back

Nvidia led the recovery, rising 4.5% to close at $201.26, after falling 5.5% on Tuesday following Wall Street Journal reports that its board was weighing whether to remove CEO Jensen Huang over an affair with an employee and a related China chip spy scandal. On Wednesday, traders appeared to separate the scandal from the company's core business, and the stock recovered part of the week's losses. Nvidia remains down 1.5% for the week.

Micron Technology rose 5.6% after the company raised its first-quarter earnings guidance and announced a $5 billion capital raise. Broadcom gained 3.5%, AMD added 2.8%, and Palantir climbed 4.2%. The AI-related buying was broad enough to lift the Nasdaq's technology and semiconductor sectors by more than 2% each.

Not every AI name joined the rally. Oracle fell 1.4% after S&P Global revised its credit outlook to negative, citing the company's rapid spending on AI infrastructure. The drop showed that investors are still drawing a line between companies whose AI spending is generating cash and those whose debt is rising faster than their earnings.

Hot inflation, shifting Fed expectations

The backdrop to Wednesday's rally was an inflation report that, on its own, should have been bad news for stocks. October's consumer price index rose 0.4% month on month, above the 0.3% economists had expected, and 3.1% year on year. Core inflation, which excludes food and energy, rose 0.3% on the month and 3.0% on the year. The numbers were hot enough to push traders to rule out a December rate cut, and Federal Reserve officials have since moved in the other direction. Fed Vice Chair for Supervision Michelle Bowman said on Tuesday that a rate hike "could be appropriate at some point early next year," the first time a Fed official has openly floated a hike since the central bank began cutting rates in 2024.

Market pricing now reflects that shift. Traders see a December hold as near-certain, with the first hike priced in for March 2027. Bond yields, which had surged on Tuesday, steadied on Wednesday, with the 10-year Treasury yield holding near 4.15%.

What to watch next

Attention now turns to the next round of catalysts. Retail sales data is due on Thursday, followed by the producer price index on Friday, and Nvidia's own earnings report is due next week — a report that will test whether the AI trade's recovery has legs. For now, though, the message from Wednesday's session is clear: investors are willing to buy the dip in AI stocks, even with inflation running hot and the Federal Reserve talking about hikes rather than cuts. The rebound does not erase the week's volatility, but it does suggest the sell-off was more about a crowded trade taking a breather than a fundamental break in the AI story.