Stocks rise on tech gains; Nvidia falls after hours

Detailed summary

NEW YORK/MILAN, Nov 11 : Major stock indexes rose on Wednesday, led by gains in technology shares after an upbeat report from CoreWeave lifted optimism about the AI trade, and the dollar strengthened.

Shares of Nvidia gained 2.9 per cent, recovering some of their recent sharp losses, but the stock fell 8 per cent after the bell after the Wall Street Journal, citing people familiar with the matter, reported Nvidia's board was preparing to oust CEO Jensen Huang after he had two extramarital affairs, including one with a suspected Chinese spy.

The Nasdaq and S&P 500 each ended the regular session more than 1 per cent higher, and the S&P 500 technology sector was up 2.7 per cent. Tech shares had been sold off in the wake of the US midterm elections last week amid worries about increased AI regulation and the sustainability of the AI rally.

CoreWeave shares finished up 24.7 per cent on Wednesday. The company said it expected to become profitable in 2028, easing concerns that demand may not be strong enough to support its debt-fueled expansion.

Strategists said investors were still digesting the implications of the midterm elections, which resulted in Democrats taking control of Congress, but also news surrounding Nvidia.

Huang "was the one who led the marvelous rise of Nvidia," said Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts. "I guess the question would be, can someone step up if Jensen has to resign or is forced out?"

The Dow Jones Industrial Average rose 254.60 points, or 0.49 per cent, to 52,486.49, the S&P 500 rose 98.45 points, or 1.31 per cent, to 7,619.38 and the Nasdaq Composite rose 400.31 points, or 1.60 per cent, to 25,466.19.

MSCI's gauge of stocks across the globe rose 12.41 points, or 1.12 per cent, to 1,121.15.

The pan-European STOXX 600 index gained 0.7 per cent, with investors piling back into AI-linked stocks, echoing a technology-driven rally in Asia after last week's sector rout.

Opening of the article, excerpted from CNA. To read the rest, open the article on the publisher's site.