US stock futures rose on Wednesday, November 11, as gains in CoreWeave and NVIDIA helped technology shares recover from recent losses. NASDAQ-100 futures led the advance, rising 1.9% before the opening bell.
S&P 500 futures gained 0.86%, while futures tied to the Dow Jones Industrial Average added 0.11% as of 6:39 a.m. ET. The move followed Tuesday's decline across all three major indexes after stronger-than-expected inflation data increased expectations of another Federal Reserve rate hike.
CoreWeave shares climbed more than 15% in premarket trading after the AI cloud provider reported third-quarter revenue of USD 3.66 billion. Revenue rose from USD 1.37 billion a year ago, exceeding analysts' forecasts.
The company's November 10 earnings release also raised its full-year 2026 revenue forecast to between USD 13 billion and USD 13.3 billion. Its backlog of contracted future revenue reached approximately USD 132.5 billion at the end of September.
CoreWeave Chief Executive Michael Intrator called the results a ‘breakout quarter,’ citing revenue growth and improved adjusted operating margins. The company expects approximately USD 9 billion in customer prepayments and deposits over the next three months, he said.
However, the results also showed rising costs. CoreWeave recorded a net loss of USD 709 million, compared with USD 110 million a year ago. Net interest expenses reached USD 846 million as the company continued financing its expansion.
NVIDIA shares advanced 5.2% before the market opened, recovering part of their losses from the previous two sessions. The chipmaker had lost approximately USD 430 billion in market value during that period.
Other semiconductor stocks also gained. Marvell Technology climbed about 8%, while Micron Technology rose 6.8%. Meanwhile, CoreWeave's earnings helped lift other companies that supply computing capacity to AI developers.
The rebound followed a difficult start to the week for technology stocks. Investors had reduced exposure to AI-related companies amid concerns about heavy infrastructure spending, rising financing costs and the pace of data center projects.
Despite Wednesday's advance in futures, the gains had not yet translated into a full regular trading session. NASDAQ-100 futures outpaced both S&P 500 and Dow futures as technology shares led the premarket recovery.
The latest consumer price index showed US prices rising 0.4% in October, after increasing 0.6% in September. The Bureau of Labor Statistics said food prices rose 0.5%, while shelter costs increased 0.3%.
Core inflation, which excludes food and energy, rose 0.3% for the third consecutive month. The data reinforced expectations that the Federal Reserve will raise rates at its December meeting.
Federal Reserve Governor Christopher Waller said on November 10 that he favored a quarter-point increase if inflation improved. However, he said a half-point increase ‘should be considered’ if inflation remained elevated.
According to CME Group's FedWatch tool, traders were pricing in an approximately 11.5% chance of a half-point increase. The larger rate move remained less likely than a quarter-point increase, although expectations of further tightening weighed on markets.
US stocks ended Tuesday lower following the inflation report. The S&P 500 lost 0.38% to finish at 7,520.93, while the NASDAQ Composite fell 0.74% to 25,065.87. The Dow Jones Industrial Average declined 157.86 points, or 0.30%, to close at 52,231.89. NVIDIA's losses contributed to the weakness in technology shares, even as some other large companies advanced.
The New York Stock Exchange and NASDAQ planned to operate normally Wednesday despite the Veterans Day holiday. However, US bond markets remained closed under the Securities Industry and Financial Markets Association's holiday schedule.
With Treasury markets shut for the day, investors were set to follow the opening moves in CoreWeave, NVIDIA and other technology stocks after their premarket gains.
Also Read: Indian Stocks May Open Higher as Falling Crude Prices Boost Investor Sentiment
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.