US stocks rebounded on Wednesday, November 11, as a recovery in artificial intelligence-related shares helped Wall Street regain much of the ground lost during the previous week's sell-off. The S&P 500 advanced 1.3%, while the Nasdaq Composite gained 1.6% and the Dow Jones Industrial Average rose 0.5%. Strong quarterly results from AI cloud infrastructure provider CoreWeave helped improve investor sentiment across the technology sector.
CoreWeave shares surged 24.7% after the company reported better-than-expected third-quarter results and raised its full-year revenue outlook. Its announcement of approximately $9 billion in expected customer prepayments and deposits also addressed concerns about financing its expanding data-centre operations. However, higher oil prices, inflation pressures and uncertainty over interest rates continued to influence broader market sentiment.
CoreWeave Surges After Strong Third-Quarter Earnings and Higher Forecast
CoreWeave became one of the biggest drivers of Wednesday's market recovery after reporting stronger-than-expected financial results for the third quarter of 2026. The company recorded revenue of $3.66 billion for the three months ended September 30, compared with approximately $1.37 billion during the same period a year earlier.
Its quarterly loss per share was $1.27, narrower than the $1.46 expected by analysts. The results demonstrated continued demand for the company's cloud infrastructure services, which provide computing capacity for businesses developing and operating artificial intelligence systems.
CoreWeave also raised its full-year 2026 revenue guidance to between $13 billion and $13.3 billion, compared with its previous forecast of $12 billion to $13 billion. The company additionally highlighted approximately $9 billion in customer prepayments and deposits expected over the following three months.
Chief Executive Michael Intrator described the quarter as a significant milestone, pointing to revenue growth of more than $1 billion sequentially and adjusted operating margins reaching double digits earlier than planned.
The earnings announcement helped ease investor concerns about CoreWeave's debt-heavy expansion strategy and its ability to finance expensive data-centre infrastructure. Nevertheless, the company continues to face substantial capital expenditure and interest costs as it expands to meet demand for AI computing capacity.
Nvidia, Micron and Broadcom Lead Wider AI Stock Recovery
CoreWeave's results helped lift several major technology and semiconductor stocks as investors reconsidered concerns about the sustainability of artificial intelligence investment. Micron Technology gained 11.9%, while Broadcom advanced 4% during Wednesday's trading session.
Nvidia also recovered, rising 2.9% after experiencing losses earlier in the week. The company's shares had faced additional pressure following reports concerning Chief Executive Jensen Huang and a businesswoman suspected by US authorities of having links to Chinese intelligence. Nvidia's board has initiated an independent investigation into the matter.
Other companies connected to AI infrastructure also recorded gains. GE Vernova, which supplies equipment supporting electricity generation and data-centre power requirements, advanced 1.4%.
The recovery followed a difficult period for technology shares, with investors questioning whether spending on AI infrastructure would generate sufficient long-term revenue and productivity improvements. Concerns about borrowing costs, financing requirements and the potential profitability of large-scale data-centre investments had contributed to the previous week's market decline.
CoreWeave's updated outlook provided investors with evidence of continuing demand from customers seeking access to AI computing resources. However, one company's quarterly results do not resolve broader questions about the industry's long-term economics. Investors are likely to continue examining infrastructure spending, financing arrangements and revenue growth as more technology companies report financial results.
Wall Street Gains as Oil Prices and Inflation Keep Investors Cautious
The broader US market also benefited from Wednesday's technology-led recovery. The S&P 500 climbed 98.45 points to close at 7,619.38, bringing it within 2.6% of its record high established the previous month. The Nasdaq Composite added 400.31 points to reach 25,466.19, while the Dow Jones Industrial Average gained 254.60 points to finish at 52,486.49.
Despite the gains, developments outside the technology sector continued to create uncertainty. Brent crude oil rose 1.4% to $92.76 per barrel as prices recovered some of their earlier losses. United Airlines shares declined 1.8%, reflecting pressure on the airline sector from higher fuel costs.
Inflation also remained a significant concern. A hotter-than-expected US inflation reading released earlier in the week pushed Treasury yields higher and strengthened expectations that the Federal Reserve could increase interest rates. Higher borrowing costs can affect mortgage rates, corporate financing and investment decisions.
Real-estate-related stocks remained under pressure, with homebuilder D.R. Horton falling 1.5% and PulteGroup declining 0.8%. The US bond market was closed on Wednesday for Veterans Day, limiting Treasury trading activity during the session.
International markets were mostly positive, with South Korea's Kospi rising 2.6%, while Hong Kong's Hang Seng Index declined 1%.
The latest rally demonstrates how strongly AI earnings can influence broader market sentiment, but inflation, energy prices and financing conditions remain important factors for investors assessing the direction of US equities.
Sources: Associated Press · Yahoo Finance · CNBC · CoreWeave – Third-Quarter 2026 Financial Results
