Nasdaq-100 futures climbed 1.68% early Wednesday, leading a broader market recovery as investors pivoted to artificial intelligence-focused earnings while digesting persistent inflation data.
The rebound follows a session where the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite suffered losses, pressured by cooling sentiment toward Nvidia (NASDAQ: NVDA).
- CoreWeave earnings beat: The neocloud provider’s third-quarter revenue results outperformed analyst expectations, providing a technical catalyst for global tech stocks.
- Rate hike probability: October consumer price index (CPI) data showed a 0.4% monthly increase, pushing the likelihood of a December Federal Reserve rate hike to 90%, according to the CME Group FedWatch tool.
- Nvidia valuation pressure: The chipmaker’s market capitalization dropped to approximately $4.07 trillion following a 5.5% decline on Tuesday, marking its lowest valuation since late March.
European technology firms mirrored this upward trend on Wednesday. Infineon Technologies (ETR: IFX) advanced 6.3%, while ASM International (AMS: ASMI) climbed 5.5%. STMicroelectronics (EPA: STMPA) gained 4% and ASML Holding (AMS: ASML) rose approximately 3%. The pan-European Stoxx 600 index recorded a 0.29% increase, while the German DAX climbed 0.73%.
Market participants are recalibrating portfolios after October inflation data exceeded expectations. The 0.4% month-over-month increase in the consumer price index reinforced the consensus that the Federal Reserve will raise interest rates in December. Comments from Fed Governor Christopher Waller further solidified the probability of a quarter-point hike.
“Despite some technical uncertainty, higher than desired levels of inflation should keep the Fed in a stance of dissatisfaction with the degree of progress on inflation remaining lackluster, so hiking the Fed Funds policy rate in December is our and the market’s base case,” said Rick Rieder, CIO of global fixed income at BlackRock. “The question now is more of one of the extent of the hike.”
Nvidia remains a focal point for institutional investors following a two-day slide. The stock retreated 5.5% on Tuesday as reports regarding CEO Jensen Huang weighed on investor confidence. This decline erased value from the firm, which now sits at a $4.07 trillion market cap. The U.S. bond market remains closed on Wednesday in observance of Veterans Day, limiting fixed-income trading volume while equity markets react to the latest corporate disclosures.
| Index/Asset | Performance Change |
|---|---|
| Nasdaq-100 Futures | +1.68% |
| S&P 500 Futures | +0.79% |
| SK Hynix | +5.36% |
| Infineon | +6.3% |
| Stoxx 600 | +0.29% |
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
