US stock market today: Nasdaq futures rally as CoreWeave earnings lift AI stocks

US stock futures advanced on Wednesday, November 11, led by a sharp rise in Nasdaq-100 futures, as upbeat quarterly results from artificial intelligence (AI) infrastructure company CoreWeave lifted investor sentiment towards technology stocks.

Nasdaq-100 futures climbed 1.6% in early trading, while S&P 500 futures gained 0.79%. Dow Jones Industrial Average futures largely remained flat at open.

The gains followed a weak session on Wall Street on Tuesday, when concerns surrounding Nvidia and stronger-than-expected US inflation data weighed on equities.

The Dow Jones Industrial Average fell more than 150 points during regular trading, while the S&P 500 and Nasdaq Composite declined 0.4% and 0.7%, respectively.

Nvidia was among the biggest drags on the market, with its shares falling 5.5% for a second consecutive session. Reports concerning CEO Jensen Huang and an alleged Chinese spy added to the pressure on the chipmaker's stock.

Nvidia's two-day decline brought its market capitalisation down to around $4.07 trillion, its lowest level since late March, CNBC reported.

CoreWeave shares jump 15% after earnings beat

Meanwhile, shares of CoreWeave surged around 15% in premarket trading on Wednesday after the AI-focused cloud computing company reported quarterly earnings that beat estimates and raised its full-year guidance, CNBC reported.

CEO Michael Intrator described the three months ended September 30 as a "breakout quarter", attributing the company's growth to multiple sources of funding, including financing backed by customer contracts.

The company also highlighted around $9 billion in customer prepayments and deposits as a key source of funding supporting its expansion.

The upbeat results lifted sentiment across other AI infrastructure companies, with fellow neocloud players Nebius and Iren also trading higher in premarket deals.

US inflation data fuels December Fed rate hike expectations

Investor sentiment remained cautious following the latest US inflation figures, which strengthened expectations of another interest rate increase by the Federal Reserve in December.

The US Consumer Price Index (CPI) rose 0.4% month-on-month in October, exceeding market expectations.

Following the inflation data, the probability of a 25-basis-point rate increase at the Fed's December meeting climbed to around 90%, according to the CME Group's FedWatch tool.

European semiconductor stocks rally

The optimism extended to European semiconductor stocks, with major chipmakers posting strong gains on Wednesday.

Germany's Infineon Technologies rose 6.3%, while Dutch semiconductor equipment maker ASM (ASMI) gained 5.5%. Switzerland-based STMicroelectronics advanced 4%, and ASML shares climbed around 3%.

Meanwhile, the US bond market remained closed on Wednesday on account of Veterans Day.