Dow Jones Futures Rise 0.03% as AI Stocks Rebound
Dow Jones futures edged higher Wednesday as futures on the S&P 500 and Nasdaq 100 rose after CoreWeave reported results that eased concerns about its debt burden. Nvidia and other chipmakers also climbed, while hotter-than-expected October inflation kept the prospect of a Federal Reserve rate increase in focus.
Dow Jones futures rose 0.03% before the U.S. market opened Wednesday, while futures tracking the S&P 500 and Nasdaq 100 advanced after CoreWeave reported results that eased investor concerns about its debt burden. The tech rebound came as traders also weighed hotter-than-expected inflation and the possibility of a Federal Reserve rate increase next month.
At 5:04 a.m. ET, Dow E-minis were up 15 points, S&P 500 E-minis gained 55.75 points, or 0.74%, and Nasdaq 100 E-minis climbed 465.25 points, or 1.67%.
CoreWeave shares jumped more than 10% in premarket trading. The company said it expected to become profitable on an adjusted basis in the first half of 2028, addressing concerns about its debt load as investors questioned the scale of spending on artificial intelligence infrastructure.
Markets have been pulled between worries about slower data center deployment and investors looking to buy stocks after declines. CoreWeave’s results helped lift technology shares despite those concerns.
Nvidia rose 4% before the opening bell after losing about $480 billion in value over the previous two sessions. Questions had intensified about CEO Jensen Huang’s relationship with a Chinese businesswoman alleged to be a spy for Beijing.
“Right now, this is the mother of all tech CEO scandals because Jensen is bigger than Elvis for tech investors,” said Eric Schiffer, chairman of The Patriarch Organization, which owns Nvidia shares. Schiffer added: “But he has tremendous goodwill, which will help insulate him from a situation that might have caused another CEO to burn to ashes.”
Chipmakers Marvell Technology and Micron each rose nearly 7% in premarket trading. Investors were also assessing terms announced Tuesday by Anthropic for an initial public offering, with the Claude chatbot creator targeting a valuation of up to $1.4 trillion.
Inflation added pressure to the market outlook. U.S. consumer prices rose more than expected in October, with food and accommodation costs higher, according to data released Tuesday.
Traders viewed a rate increase next month as certain, while assigning an 11.5% chance to a half-percentage-point increase, according to the CME FedWatch tool. Before the inflation data came out, Federal Reserve Governor Christopher Waller said the central bank should consider raising borrowing costs by 50 basis points if October inflation worsened.
“While a December rate hike now appears almost fully priced in, the bigger concern is that investors may have underestimated how much further the Fed will need to tighten,” said Daniela Hathorn, senior market analyst at Capital.com.
The U.S. bond market was closed Wednesday for the Veterans Day holiday.
