The Nasdaq is set to open significantly higher on Wednesday as Nvidia recovers from substantial recent declines, while robust results from CoreWeave contribute to a renewed sense of confidence in the AI sector. Nasdaq futures experienced an increase of 1.9% recently, while futures associated with the benchmark S&P 500 and the Dow Jones Industrial Average rose by 0.9% and 0.2%, respectively. Each of the major indexes concluded the trading session in the red yesterday, following a stronger-than-anticipated inflation report that bolstered expectations for an interest rate hike by the Federal Reserve in the upcoming month.
The U.S. stock market has experienced a notably turbulent period in the week following the Democrats’ significant win in the midterm elections, raising investor apprehensions that advancements in AI could be hindered under the new governance in Washington and critical state offices. Shares of Nvidia, the chipmaker at the forefront of the AI boom that has been the catalyst for record stock market gains in recent years, were up nearly 4% in recent premarket trading. The stock experienced a decline of nearly 10% over the past two sessions in light of reports indicating that its CEO, Jensen Huang, is under investigation by Nvidia’s board concerning his association with a woman purportedly linked to espionage activities for China.
Chip stocks that are widely held are experiencing gains this morning across the board. Marvell Technology was up nearly 9% recently, while Advanced Micro Devices, Intel, and Micron each rose more than 5%, and Broadcom climbed 4%. The iShares Semiconductor ETF was up 5%. Meanwhile, shares of CoreWeave surged 14% following the cloud computing provider’s strong quarterly results and an upward revision of its guidance. In other markets, WTI crude oil futures increased by 1.6% to reach $87.40 per barrel, while gold futures rose by 0.5% to $4,050 per ounce.
Bitcoin was little-changed from yesterday afternoon’s levels, trading at $73,700, near a three-month low. The bond market will remain closed on Wednesday in observance of Veterans Day. Explore the intricacies of the day’s market movements with Investopedia’s Value Add, which offers incisive analysis, investment strategies, and actionable insights into the implications of today’s most significant financial narratives for your portfolio. Explore Value Add and subscribe on Substack.
