AI stocks lead Wall Street rebound
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NEW YORK (AP) -- A rebound for stocks in the artificial intelligence industry lifted the U.S. market on Wednesday.
The S&P 500 rose 1.3% and got close to recovering all of its brutal sell-off from last week triggered by worries about a potential slowdown for AI-related businesses. The index pulled within 2.6% of its all-time high set last month.
The Nasdaq composite rallied a market-leading 1.6% because of the strength for tech stocks, while the Dow Jones Industrial Average added 254 points, or 0.5%.
Leading the way was one of the stocks that’s been at the center of the AI industry’s manic recent swings. CoreWeave, which rents out access to AI chips to customers over the cloud, leaped 24.7% after showing investors that it lost less money during the summer than analysts expected.
It also made announcements that could allay some of the worries dogging it and the wider industry. 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.
CoreWeave CEO Michael Intrator said his company has roughly $9 billion in customer prepayments and deposits expected in the next three months, along with other sources of cash to help pay its bills. That had some analysts saying it’s making progress toward being able to self-fund its business.