STOCKS | Tech Shares Rally as Fed Officials Weigh Further Rate Hikes

U.S. stocks opened broadly higher on November 11, with the Dow Jones Industrial Average up 0.07%, the Nasdaq Composite up 1.55% and the S&P 500 up 0.98%. According to Sina Finance, technology shares led gains: the Philadelphia Semiconductor Index rose more than 4%, Coherent gained over 10%, Intel, Broadcom and Arm rose more than 6%, and Nvidia and Tesla advanced over 3%. CoreWeave shares briefly climbed above $57, up more than 17%, after the AI computing cloud provider reported third-quarter revenue growth of 168% year over year and raised its full-year 2026 guidance. The move lifted other AI cloud stocks, with Nebius gaining over 12%. CoreWeave's revenue growth came amid turmoil in the AI chip sector linked to Nvidia. Its shares have fallen 65% from their May peak, while its market capitalization has dropped more than 40% over the past month. Zacks Chief Equity Strategist John Blank said the stock had gained a valuation basis after its steep decline. Freedom Capital Markets analyst Paul Meeks said improving margins were key evidence that CoreWeave had reached an earnings inflection point. Investors are weighing the company's results against concerns about the AI computing sector's long-term sustainability. Chicago Fed President Austan Goolsbee called the latest consumer inflation report “almost unsettling, concerning.” He did not say whether he supported a rate hike at the Fed's December meeting, and said he did not want to lock in choices for future meetings. The U.S. consumer price index rose 0.4% month over month in October on a seasonally adjusted basis, above economists' expectations. Several policymakers have indicated the Federal Open Market Committee may need to act more decisively to curb inflation. Dallas Fed President Lorie Logan said the Fed still needed to raise rates twice by 25 basis points each, and that hikes this winter could come faster than this fall. Logan has a vote on the FOMC this year and will participate in December's rate decision; Goolsbee becomes eligible to vote next year.