December Nasdaq 100 E-Mini futures (NQZ26) are up +2.00% this morning as upbeat results and guidance from CoreWeave and growing excitement around Anthropic PBC’s initial public offering fueled investor appetite for the AI trade.
CoreWeave (CRWV) popped over +13% in pre-market trading after the neocloud company reported better-than-expected Q3 results and raised its full-year revenue guidance. The company also said it expects to achieve profitability on an adjusted basis in the first half of 2028.
Adding to the optimism, the Financial Times reported that Anthropic PBC’s bankers are considering raising the company’s valuation in its initial public offering to $1.5 trillion or more amid strong investor demand. Separately, Bloomberg reported that OpenAI’s quarterly revenue reached $10 billion for the first time.
The positive developments sparked a broad rally in chip and AI infrastructure stocks in pre-market trading. Sandisk (SNDK) was up over +8%, Marvell Technology (MRVL) was up more than +7%, and Advanced Micro Devices (AMD) was up over +6%.
Meanwhile, WTI crude edged higher on Wednesday, snapping a two-day losing streak amid uncertainty over U.S.-Iran peace negotiations. Mohsen Rezaee, Secretary of Iran’s Supreme National Security Council, said the country would not allow “a single atom” of enriched nuclear material to leave its territory, underscoring the divide between Washington and Tehran over a potential agreement. Despite U.S. President Donald Trump’s assertion that further strikes against Iran would not be necessary, The Wall Street Journal reported that the U.S. repeatedly targeted Iran’s Qeshm Island in recent days, while Tehran said on Tuesday that it struck an Omani island used to help vessels navigate the Strait of Hormuz.
In yesterday’s trading session, Wall Street’s major indexes ended in the red as hotter-than-expected inflation data pushed Treasury yields sharply higher. Most chip and AI infrastructure stocks slid, with Sandisk (SNDK) falling about -3% and Arm Holdings (ARM) dropping more than -2%. Also, Nvidia (NVDA) sank over -5% and was the top percentage loser in the Dow, extending Monday’s slump after the company’s board launched an investigation into CEO Jensen Huang following his admission of an affair with a woman described in multiple reports as a suspected Chinese spy. In addition, shares of homebuilders and building suppliers declined after the 10-year T-note yield jumped, with Lennar (LEN) sliding over -5% and Builders Firstsource (BLDR) falling more than -4%. On the bullish side, AAON Inc. (AAON) jumped over +19% after the company posted upbeat Q3 results and raised its full-year revenue growth guidance.
A report released by the U.S. Bureau of Labor Statistics on Tuesday showed that consumer prices rose +0.4% m/m in October, exceeding expectations of +0.3% m/m. Core CPI, which excludes volatile food and fuel prices, rose +0.3% m/m, above expectations of +0.2% m/m.
Speaking in London hours before the inflation data was released, Fed Governor Christopher Waller said he was inclined to back a quarter-point interest-rate hike next month, even if the figures showed easing price pressures. “But if the October CPI inflation data … are similar to the past two monthly readings — with core CPI inflation around 0.3% or even higher — then a stronger policy move may be needed,” Waller said. “In that case, I believe a 50-basis-point hike in the policy rate should be considered at the December meeting.” The October core CPI reading subsequently met the threshold Waller cited for considering a larger rate hike. Adding to the hawkish tone, Dallas Fed President Lorie Logan said she continues to see the need for at least two quarter-point rate hikes. She also noted that although the pace of rate hikes will depend on economic data and financial conditions, “it may be possible to move more rapidly this winter than the FOMC has moved so far this fall.”
“The Fed could push for a more aggressive tightening cycle with CPI continuing to print strong. A December hike is our firm base case despite wider AI jitters, and stubborn inflation means we cannot rule out further hikes in 2027,” said Lindsay Rosner at Goldman Sachs Asset Management.
U.S. rate futures are currently pricing in an 86.5% chance of a 25-basis-point rate hike and a 13.5% chance of a 50-basis-point rate hike at the December FOMC meeting.
The U.S. economic data slate is empty on Wednesday.
The U.S. bond market is closed today for the Veterans Day holiday.
The Euro Stoxx 50 Index is up +0.70% this morning, extending this week’s rally. Technology stocks led the gains on Wednesday as upbeat results and guidance from neocloud company CoreWeave and strong demand for Anthropic PBC’s IPO boosted confidence in the AI trade. Mining stocks also climbed, supported by higher metal prices. At the same time, retail and food and beverage stocks lagged, limiting the benchmark’s advance. Final data released on Wednesday showed that Germany’s annual inflation rate eased to 2.8% in October, confirming preliminary estimates. Separately, data showed that Italy’s monthly industrial production rebounded more than expected in September, providing some respite to the country’s long-struggling manufacturing sector. Meanwhile, Eurozone government bond yields edged lower on Wednesday as bond markets stabilized after the previous day’s hotter-than-expected U.S. inflation report rattled Treasuries and European debt markets. In corporate news, Siemens Energy (ENR.D.DX) climbed over +9% after the energy equipment maker unveiled new medium-term targets, aiming for higher sales and a sharp increase in profitability.
Germany’s CPI and Italy’s Industrial Production data were released today.
The German October CPI fell -0.2% m/m and rose +2.8% y/y, in line with expectations.
The Italian September Industrial Production rose +1.2% m/m, stronger than expectations of +0.7% m/m.
Asian stock markets today closed in the green. China’s Shanghai Composite Index ($CHSC) closed up +0.46%, and Japan’s Nikkei 225 Stock Index ($NKY) closed up +1.31%.
China’s Shanghai Composite Index erased earlier losses and ended higher today, supported by strength in the technology sector. Tech stocks rallied on Wednesday, tracking gains among their regional peers. Meanwhile, Bloomberg reported on Wednesday that the People’s Bank of China sought feedback from market participants on a potential tax on interest income from government bonds, a move that could provide a boost to yields that have remained near record lows. Elsewhere, Alibaba said late Tuesday that the Hong Kong stock exchange confirmed the company could move forward with an initial public offering of its semiconductor business, T-Head. In corporate news, shares of Sichuan Neautus Traditional Chinese Medicine surged over +71% in their Hong Kong trading debut after the company raised HK$262 million ($33.4 million) in an IPO.
Japan’s Nikkei 225 Stock Index closed higher today as the upbeat outlook from U.S. neocloud provider CoreWeave and growing excitement ahead of Anthropic PBC’s listing boosted sentiment toward the AI trade. Semiconductor-related and other AI stocks jumped on Wednesday. Chip-testing equipment maker Advantest and memory-chip maker Kioxia Holdings climbed more than +5%, providing the biggest boost to the Nikkei. Gains in bank and chemical stocks also supported the benchmark. Meanwhile, Japanese government bond yields surged on Wednesday, tracking an overnight Treasury selloff sparked by the hotter-than-expected U.S. inflation data that fueled bets on more aggressive Fed interest-rate hikes. On the economic front, a monthly Reuters poll showed that sentiment among Japanese manufacturers climbed to its highest level in more than five years in November, as surging semiconductor demand fueled widespread optimism. In corporate news, SoftBank Group slipped -0.4% after the tech investor posted its first quarterly loss in nearly two years, partly due to $3.7 billion in charges tied to power-generation equipment for U.S. data-center projects. Investor focus is now squarely on Japan’s October PPI data, scheduled for release on Thursday, which is expected to show that cost pressures remained elevated. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -1.46% at 35.72.
Pre-Market U.S. Stock Movers
CoreWeave (CRWV) popped over +13% in pre-market trading after the neocloud company reported better-than-expected Q3 results and raised its full-year revenue guidance. The company also said it expects to achieve profitability on an adjusted basis in the first half of 2028.
Chip and AI infrastructure stocks jumped in pre-market trading following strong results and guidance from CoreWeave, growing excitement around Anthropic’s IPO, and OpenAI’s revenue milestone. Sandisk (SNDK) was up over +8%, Marvell Technology (MRVL) was up more than +7%, and Advanced Micro Devices (AMD) was up over +6%.
Most members of the Magnificent Seven advanced in pre-market trading, with Nvidia (NVDA) rising over +4% and Tesla (TSLA) gaining more than +1%.
Fossil Group (FOSL) jumped over +24% in pre-market trading after the watchmaker reported stronger-than-expected Q3 results and boosted its annual net sales guidance.
The Hartford (HIG) fell more than -1% in pre-market trading after Wells Fargo downgraded the stock to Equal Weight from Overweight.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - November 11th
Franco-Nevada (FNV), Vylor (VYLR), CGI Inc. (GIB), Tetra Tech (TTEK), CAE Inc. (CAE), Corteva (CTVA), OR Royalties (OR), ICL Group (ICL), EnerSys (ENS), Okeanis Eco Tankers (ECO), Teekay Tankers (TNK), Boyd Group Services (BGSI), Digi International (DGII), Pelagos Insurance Capital (PLGO), Lakefront Biotherapeutics NV (LKFT), RUM Group (RUM), Applied Aerospace & Defense (AADX), Nayax (NYAX), EZCORP (EZPW), Alvotech (ALVO), FLEX LNG (FLNG), AEVEX (AVEX), Adecoagro (AGRO), Teekay Corporation (TK), Riskified (RSKD), Oddity Tech (ODD), Aebi Schmidt Holding AG (AEBI), Agi Inc. (AGBK), Xanadu Quantum Technologies (XNDU), InMode (INMD), Himalaya Shipping (HSHP), Sigma Lithium (SGML), Integra Resources (ITRG), CI&T Inc. (CINT), BSR Real Estate Investment Trust (BSRT), A2Z Cust2Mate Solutions (AZ), Alpha Cognition (ACOG), OptimizeRx (OPRX), Valens Semiconductor (VLN), RADCOM (RDCM), CuriosityStream (CURI), PolyPid (PYPD), EuroDry (EDRY), Solana Company (HSDT), DeFi Development (DFDV).
On the date of publication, Oleksandr Pylypenko did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.