US stock futures rose as investors returned to artificial intelligence stocks after a selloff, even as stronger US inflation raised expectations of Federal Reserve rate hikes. NASDAQ 100 futures climbed 1.6%, while CoreWeave gained 11% in early trading after reporting strong sales growth. The rebound followed Tuesday's decline across Wall Street, when the NASDAQ lost 0.7%, and NVIDIA shares fell sharply.
CoreWeave's results helped lift shares in companies that provide computing power for artificial intelligence. The firm's sales growth eased some investor concerns about its heavy debt and the cost of expanding data centers. Other neocloud companies, including Iren and Nebius, also advanced.
The gains followed a difficult week for technology stocks. Fears that the pace of AI data center construction could slow had driven selling across the sector. Buyers then returned to several AI-linked shares, although the previous session ended with losses for major US indices.
Interest in Anthropic also supported the shift in market sentiment. The company behind the Claude chatbot plans to raise nearly USD 64 billion in an initial public offering expected later this month. Its fundraising target is below the earlier estimate of USD 100 billion.
Anthropic also reported a sharp rise in sales in its securities filing. Third-quarter revenue reached USD 17 billion, compared with USD 1.4 billion a year earlier. Kathleen Brooks, research director at XTB, said the AI trade could face further challenges even if the offering succeeds.
The rebound in futures came after a weak Tuesday session on Wall Street. US consumer prices rose more than economists had expected in October, although inflation slowed from the previous month. Stocks declined as traders increased bets on tighter monetary policy.
Federal Reserve Governor Christopher Waller called for swift action against inflation. He indicated that he could support a 50-basis-point rate increase in December. Dallas Fed President Lorie Logan also backed a strong response to persistent price pressures.
David Kelly, chief global strategist at JPMorgan Asset Management, took a different position. Speaking on Bloomberg Surveillance, he explained why the Federal Reserve did not need a half-point increase next month. The opposing views added to the debate over the central bank's next move.
Can the recovery in AI shares continue while traders prepare for higher interest rates? Tuesday's losses showed the pressure facing equities after the inflation report. The NASDAQ fell 0.7%, while the other two major US indices also closed lower. The dollar gained.
Also Read: US Stock Market Futures Rise as Oil Prices Fall & NVIDIA Shares Slide
NVIDIA remained a major source of weakness in technology shares. The chipmaker lost 5.5% on Tuesday after falling 4.3% on Monday. Its market value briefly slipped below Microsoft's during the session, before NVIDIA finished as the world's second-largest listed company behind Apple. The moves followed reports about CEO Jensen Huang's relationship with a woman suspected of intelligence ties to China and an ongoing FBI investigation.
The decline contrasted with gains on several Asian and European stock exchanges. Those markets mostly advanced as investors weighed weaker oil prices and developments in the AI sector. US equity markets, by comparison, struggled throughout Tuesday's session.
Oil prices fell as hopes grew for an agreement between the United States and Iran. Brent crude traded below USD 90 a barrel for the first time since August, then finished at USD 91.49. This closing price represented a 1.2% drop.
Axel Rudolph, chief technical analyst at IG, linked the retreat to signs of easing supply risks. President Donald Trump had signaled that further strikes on Iran might not be necessary. Meanwhile, shipping flows through the Strait of Hormuz increased, and Middle Eastern oil exports moved toward prewar levels.