CoreWeave Rallies as AI Demand Drives Stronger Revenue Outlook | Closing Bell

Market Performance and Sentiment

• The S&P 500 closed down approximately 1% to 4% (narrative contains conflicting figures, with "down 1%" and "down 4%" both stated), while the Dow Jones was the relative winner, down roughly 0.3%.
• Market breadth was nearly even, with 249 stocks advancing and 250 declining within the S&P 500.
• Sector performance showed a split: Technology declined 1.4%, while Financials gained ~0.5%, Consumer Discretionary performed positively, and Energy rose ~0.3%.
• Trading volumes picked up in the final 15–20 minutes, but the day's tone was established by a bond market meltdown starting at 8:30 a.m. Eastern.

Macro-Economic Data and Fed Policy

• Treasury yields spiked to their highest levels since the "tariff meltdown," with the 10-year yield exceeding 5% intraday and the 30-year yield rising 7 basis points to 5.35%.
• Consumer Price Index (CPI) data was reported hotter than anticipated; Bloomberg Economics estimated year-over-year inflation at 3.1%.
• Traders are pricing in a higher probability of a Federal Reserve rate hike in mid-December due to inflation persistence.
• Comments from Waller and the hawkish repricing of bonds contributed significantly to the yield surge.
• A new policy group chaired by Lael Brainard is advocating for a Federal Housing Administration program to provide $1,000 down payments for first-time homebuyers.

Corporate Earnings and Specific Movers

• Charter Communications (UP 10.6%): Announced a $1.5 billion debt buyback targeting eight bonds due between 2041 and 2062; the company is simultaneously cutting costs to achieve $2 billion in annualized operating expense savings.
  • Stock remains down 36% year-to-date with 16% of the float shorted.
  • Reported further declines in home internet and cable TV customers.
• Take-Two Interactive (UP 8.3%): Issued a conservative outlook ahead of the Grand Theft Auto VI release; stock is down 13% year-to-date.
• ZipRecruiter (UP ~54%): Shares rallied 40% intraday and finished higher after third-quarter results beat expectations despite a weaker labor market.
  • UBS raised its price target to $5 (from $4.50), while maintaining a neutral rating; shares currently trade around $6.59.
  • Stock is up 49% year-to-date.
• NVIDIA (DOWN ~5.5%): Shares have tumbled 30% since the October 5 high and 9.5% over the last two days.
  • Independent board members hired a former federal prosecutor to investigate CEO Jensen Huang's relationship with a suspected Chinese spy.
  • President Trump defended Huang, stating Huang was unaware of the spy connection and is a "very honorable man," though political scrutiny intensifies regarding ties between the administration and the company.
• On Holding (DOWN 7.5%): Shares fell after direct-to-consumer revenue missed Wall Street estimates.
• GE Vernova (DOWN 3.9%): Closed lower after SoftBank revised its U.S. AI data center equipment procurement strategy.
  • SoftBank reported a $3.7 billion write-down and its first net loss in nearly two years.
• CoreWeave (Post-Market UP ~5-7.5%): Third-quarter earnings beat expectations with a loss per share of $127 (vs. $146 expected) and revenue of $3.66 billion.
  • Raised fiscal 2026 revenue guidance to $13–13.3 billion (previously $12–13 billion).
  • Announced full-year capital expenditure guidance of $37–39 billion, exceeding the $35.6 billion street estimate.
  • Cites $9 billion in customer prepayments to support infrastructure scaling and growth.
• Nebula/Neocloud Sector: Neocloud entities generally saw gains in after-hours trading, with one measure up 3.4%.