AI Stocks Lead a Technology Rebound as CoreWeave Jumps

It’s Remembrance Day and Veterans Day today, with banks and government offices closed. There are no major economic reports, and trading volumes may be lighter, perhaps increasing volatility in some situations.

Equity markets are rebounding this morning, led by AI stocks. Data centre operator CoreWeave reported stronger-than-expected revenue of $3.66 billion versus the Street at $3.54 billion, while its loss of $0.95 was smaller than the Street’s $1.27 loss estimate. CoreWeave shares are up 15.1% premarket in a relief rally. Even with that move, investors should note that the shares closed yesterday down 64.6% from their 52-week high reached in May.

Energy and metals are also bouncing back as lower-level hostilities continue around the Strait of Hormuz. Treasury yields and the US Dollar are building on Tuesday’s gains, which were sparked by hawkish Fed comments and hotter-than-expected inflation data.

US equity futures are higher, with NASDAQ futures up 1.8% and Dow futures up 0.2%. In Asia, the Nikkei gained 1.3% and the KOSPI rose 2.6%, while the Hang Seng fell 1.0%. In Europe, the DAX is up 0.6% and the FTSE is up 0.3%.

Commodities are broadly firmer. Crude Oil is up 1.4%, retaking $85.00/bbl, while Brent Crude has gained 1.8%, retaking $92.50/bbl. Gasoline is up 0.1, trading around $2.60/gallon. Gold is up 0.4%, although it remains below $4,100/oz, while Copper has gained 0.8%, retaking $6.25/lb. Silver is up 2.9%.

The US 10-year Treasury note yield is steady near 5.00% after rallying yesterday, while the US 30-year Treasury note yield is consolidating Tuesday’s rally above 5.35%. The USD Index is up 0.4%, while the Euro and Loonie are each down 0.4%.

Looking ahead, the focus on inflation continues with US producer prices on Friday. UK GDP and industrial production numbers are due Thursday.

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