The Nasdaq Composite traded 1.3% higher on Wednesday as CoreWeave and Nvidia rebounded. A day earlier, an Nvidia sell-off and a hotter-than-expected inflation report had pushed the major averages lower.
The Nasdaq Composite traded 1.3% higher on Wednesday, while the S&P 500 advanced nearly 0.9% and the Dow Jones Industrial Average was roughly flat. CoreWeave rallied 13% after the company reported third-quarter revenue that beat analyst expectations, and Nvidia climbed 3%.
CoreWeave earnings lead the tech rebound
CoreWeave also lifted its operating income and revenue guidance for 2026. According to CNBC, CEO Michael Intrator called the three months to Sept. 30 a "breakout quarter".
Nvidia, meanwhile, gained 3% after dropping nearly 10% to begin the week, following CEO Jensen Huang confirming he had an affair with an alleged Chinese spy. That pullback weighed on the broader market Tuesday, and the major averages ended the session lower.
Inflation data firms up Fed hike bets
Tuesday's decline also followed the latest U.S. inflation data. The consumer price index rose 0.4% month over month in October, topping expectations.
Expectations for a quarter-point rate hike next month rose to about 90% after the release, according to the CME Group's FedWatch tool. David Mericle at Goldman Sachs thinks another quarter-point hike is coming in March following the expected December move.
UBS's Ulrike Hoffmann-Burchardi, by contrast, thinks FOMC support for a 50-basis-point hike is limited.
Nasdaq still sits below its record
The Nasdaq Composite fell 0.74% on Tuesday to close at 25,065.87. It closed below its 50-day and 200-day moving averages and sits 9.6% below a record.
The S&P 500 fell 0.38% to 7,520.93 and remains just 4.1% below a record high.
Source: CNBC
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