U.S. tech stocks extend rebound on CoreWeave results, Anthropic IPO hopes
U.S. technology stocks are set to rise on Wednesday as investor appetite improves after last week's Wall Street sell-off. Stronger than expected revenue growth at CoreWeave and expectations for a higher Anthropic IPO valuation are helping lift sentiment across AI-linked shares.
Highlights
- Nasdaq 100 futures jump 1.6 per cent in European morning, building on this week’s 2.8 per cent gain after last week's 4.9 per cent drop.
- CoreWeave shares surge 10.5 per cent in pre-market trading on stronger-than-expected results, while Anthropic may target a $1.5tn+ IPO valuation.
- Nvidia climbs 5 per cent in pre-market trading after Tuesday’s 5.5 per cent fall, supported by overall AI-linked optimism across U.S. tech stocks.
AI-linked gains drive market recovery
As reported by Financial Times, Nasdaq 100 futures rise 1.6 per cent in the European morning, putting the tech-heavy index on course to add to its 2.8 per cent gain this week and recover more of last week's 4.9 per cent decline.Traders point to better than expected results from cloud computing group CoreWeave, where revenue growth exceeds expectations. The FT also reported that Anthropic's bankers are considering plans to raise the AI company's IPO valuation to $1.5tn or more in the coming days.
CoreWeave shares rise 10.5 per cent in pre-market trading, while SpaceX gains 2.2 per cent. Nvidia is up 5 per cent in pre-market trading after falling 5.5 per cent on Tuesday, when its chief executive admitted to an affair with a woman the U.S. believes is a Chinese spy.
"Investors are being whipsawed by news flow and sentiment, between this being a generational buying opportunity into AI or a classic value trap," Arun Sai, senior multi-asset strategist at Pictet, said.
Political backdrop and broader market moves
Technology shares have struggled since reaching a record high in early October, as concerns grow over the durability of the AI investment boom and political resistance in the U.S. after last week's midterm elections."We retain our bullish view on risky assets. Our view remains that the blue sweep does not destroy the AI trade," Jefferies' Mohit Kumar said, referring to the Democrats' sweeping victory in the U.S. midterms. He added that stronger checks and balances should be positive from a medium-term perspective.
Beyond technology stocks, futures for the blue-chip S&P 500 rise 0.7 per cent. In Europe, the Stoxx 600 is up 0.3 per cent, while the UK's FTSE 100 rises by the same amount.
This adds to earlier discussion around Nasdaq 100 rebound as traders weighed earnings optimism and Federal Reserve rate expectations.
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