A rebound for stocks in the artificial intelligence industry is lifting the US market.
asserted
rebound → lift → market
The S&P 500 rose 1.3 per cent and was on track for a third gain in four days since its wipeout last week on worries about a potential slowdown for AI-related businesses.
asserted
S&P → rise → businesses
The Nasdaq composite rallied 1.9 per cent, but stocks outside of AI weren’t doing as well.
asserted
stocks → rally → AI
The Australian sharemarket is set to decline, with futures pointing to a loss of 50 points, or 0.5 per cent, at the open.
asserted
futures → set → open
The ASX added 0.3 per cent on Wednesday.
asserted
ASX → add → Wednesday
The AUstralian dollar was weaker at US68.48¢.
Leading the way on Wall Street was one of the stocks at the centre of the AI industry’s manic recent swings.
asserted
one → lead → swings
CoreWeave, which rents out access to AI chips to customers over the cloud, leaped 25 per cent after reporting a smaller loss for the latest quarter than analysts expected.
asserted
analysts → rent → quarter
It also made announcements that could allay some of the worries dogging it and the wider industry.
uncertain
that → make → it
For one, concerns are high about how CoreWeave and other companies will handle higher interest rates in the bond market, which make borrowing money more expensive.
asserted
borrowing → handle → money
CoreWeave CEO Michael Intrator said his company has roughly $US9 billion ($13.1 billion) in customer prepayments and deposits expected in the next three months, along with other sources of cash to help pay its bills.
asserted
company → say → bills
That had some analysts saying it’s making progress toward being able to self-fund its business.
asserted
it → have → business
Worries have also been rising about a potential slowdown in the overall industry given longstanding worries about whether AI will produce enough profit and productivity to make the expensive investments worth it.
asserted
investments → rise → profit
Such concerns hit a higher level following sweeping victories for Democrats in last week’s US midterm elections.
asserted
concerns → hit → elections
The worry is that Democratic control of statehouses across the country could lead to restrictions on the construction of further AI data centres and the industry broadly.
uncertain
control → lead → centres
But CoreWeave suggested strength is continuing, at least for now, and it raised its forecast for how much revenue it expects to make this year.
uncertain
it → suggest → revenue
The number was higher than analysts expected.
asserted
analysts → expect → ?
Of course, many challenges remain for CoreWeave and for the AI industry broadly.
asserted
challenges → remain → industry
But CoreWeave’s report nevertheless helped stocks across the industry claw back some of their sharp recent losses.
asserted
stocks → help → losses
Micron Technology, which sells memory for computers, rallied 13.4 per cent.
asserted
which → sell → computers
Broadcom added 6.6 per cent.
asserted
Broadcom → add → cent
GE Vernova, which is helping to power AI data centres, rose 3.1 per cent.
asserted
which → help → centres
Even Nvidia climbed 3.8 per cent.
asserted
Nvidia → climb → ?
The chip company that quickly became the face of the AI boom has been falling recently for reasons that have nothing to do with the rest of the industry.
asserted
that → become → industry
Its board is investigating its CEO, Jensen Huang, after he admitted to a relationship with a businesswoman who allegedly fed intelligence and advanced chips to China.
uncertain
who → investigate → China
Outside of tech, Fossil Group soared 26.9 per cent after the seller of watches, handbags and other products reported a stronger profit for the latest quarter than analysts expected.
asserted
analysts → soar → quarter
It also raised its forecast for revenue this year.
asserted
It → raise → revenue
Trading elsewhere on Wall Street was mixed, though, and slightly more stocks within the S&P 500 fell than rose.
asserted
stocks → fall → S&P
United Airlines lost 1.6 per cent as stocks broadly felt pressure from a rise in oil prices, which recovered some of their losses from earlier in the week.
asserted
which → lose → week
The price for a barrel of Brent crude added 2.9 per cent to $US94.10.
asserted
price → add → US94.10
It’s near the middle of its $US72 to $US120 range since the war with Iran sent oil prices much higher early this year.
asserted
war → ’ → prices
Higher oil prices tend to push yields upward in the bond market, but the US bond market is closed for the day in observance of Veterans Day.
asserted
market → tend → Day
Yields jumped in the bond market the day before following a worse-than-expected reading on inflation in the United States.
asserted
Yields → jump → States
The discouraging report raised expectations for coming hikes to interest rates by the Federal Reserve.
asserted
report → raise → Reserve
Higher yields mean higher rates for mortgages, and companies in the real-estate industry continued to fall Wednesday.
asserted
companies → mean → industry
Homebuilders PulteGroup sank 2 per cent and D.R. Horton fell 1.9 per cent.
asserted
Horton → sink → ?
In stock markets abroad, indexes rose across much of Europe and Asia.
asserted
indexes → rise → Europe
South Korea’s Kospi jumped 2.6 per cent for one of the world’s biggest moves, while Hong Kong’s Hang Seng was an outlier after falling 1 per cent.
asserted
Seng → jump → moves
Stocks rose 0.5 per cent in Shanghai as China’s biggest online shopping festival, Singles Day, began Wednesday.
asserted
festival → rise → Shanghai
Its sales data will offer a gauge of how strong spending is in the world’s second-largest economy.
asserted
spending → offer → economy
The Aporia
