US stocks end higher as CoreWeave results ease AI spending worries

Detailed summary

Nvidia stabilised after two straight sessions of sharp declines. Read more at straitstimes.com.

Traders working on the floor of the New York Stock Exchange in New York City on Nov 10.

NEW YORK - US stocks closed higher on Nov 11, with the S&P 500 and the Nasdaq each rallying more than 1% as earnings from neocloud firm CoreWeave cooled investor concerns about the durability of the AI trade, while Nvidia stabilised after two straight sessions of sharp declines.

Battered CoreWeave shares surged 24.7%, their biggest daily percentage jump in more than three months, to close at the highest level in two weeks. The company said it would become profitable in the first half of 2028 on an adjusted basis, seeking to reassure investors that strong demand and customer commitments could support its debt-fuelled expansion.

Sentiment improvedacross AI infrastructure stocks, as Nebius Group surged 15.4% and Applied Digital shot up 7.4%.

Nvidia advanced after shedding about US$430 billion (S$550 billion) of market capitalisation in the previous two sessions as investors worried ​about chief executive officer Jensen Huang’s relationship with a businesswoman alleged to be a Chinese spy.

Equities have been volatile in recent days. Investors have expressed concerns about more regulation in the AI space after sweeping Democratic victories in the US midterm elections last week. That, and worries about Nvidia’s leadership, pressured one of the biggest pillars of the current bull market.

Contributing to choppy stock trading, investors have been encouraged by cooling oil prices but concerned by hot inflation data that pushed Treasury yields sharply higher.

“Everybody’s looking for a canary in a coal mine every single day, every minute of every day, and then they’re reacting every single day,” said Thomas Martin, senior portfolio manager at Globalt in Atlanta.

“What we’ve seen is that you’ve gone back and forth, back and forth, back and forth between AI is good, AI is not so good. We’re worried about it, then oh, it’s great.”

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