Futures
US futures point higher. Nasdaq 100 futures lead, up 2.05%. S&P 500 futures are up 0.99% and Russell 2000 futures are up 0.97%. Dow futures trail at 0.32%. The tech-heavy gap shows the AI trade is driving the move.
Macro & overnight
October CPI rose 0.4% from September, above expectations. That pushed stocks lower Tuesday and cemented expectations for a December Fed rate hike. The 10-year Treasury yield rose to 4.88%, near the 5% mark, which pressures growth stock valuations.
This morning the mood has shifted. CoreWeave beat estimates and raised its annual guidance. That eased fears of an AI hardware slowdown, and chip shares surged premarket. Applied Materials reports Thursday after the close.
Nvidia fell 5.5% on Tuesday, its second straight drop, on controversy around its CEO. It is a stock to watch at the open.
Themes
Semiconductors ▲ median +4.77%: MRVL +9.07%, ALAB +7.39%, ARM +6.62%, MPWR +6.00%, INTC +5.90%, AMD +5.05%, and 9 more
Memory & storage ▲ median +7.84%: STX +9.45%, SNDK +8.49%, WDC +8.47%, MU +7.21%, P +6.10%, NTAP +3.98%
AI infrastructure & data centers ▲ median +7.15%: CRWV +15.41%, NBIS +13.19%, DELL +7.88%, VRT +6.41%, HPE +6.37%, SMCI +5.76%
Semiconductors: Chip stocks rose together. Marvell (MRVL) gained 9.07%, Astera Labs (ALAB) 7.39% and Arm (ARM) 6.62%. Intel (INTC) rose 5.90% and AMD 5.05%.
Memory & storage: Seagate (STX) rose 9.45%, Sandisk (SNDK) 8.49% and Western Digital (WDC) 8.47%. Micron (MU) added 7.21%.
AI infrastructure & data centers: CoreWeave's beat and raised full-year revenue forecast revived interest in neocloud stocks. CoreWeave (CRWV) rose 15.41% and Nebius (NBIS) 13.19%. Dell (DELL) gained 7.88% and Vertiv (VRT) 6.41%.
