Financial Markets                      11/11 15:40

   

   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.

   Worries have also been rising about a potential slowdown in the overall 
industry given longstanding worries about whether AI will produce enough profit 
and productivity to make the expensive investments worth it. Such concerns 
accelerated following sweeping victories for Democrats in last week's U.S. 
midterm elections. The worry is that Democratic control of statehouses across 
the country could lead to restrictions on the construction of additional AI 
data centers and the industry broadly.

   But CoreWeave suggested strength is continuing, at least for now, and it 
raised its forecast for how much revenue it expects to make this year. The 
number was higher than analysts expected.

   Of course, many challenges remain for CoreWeave and for the AI industry 
broadly. But CoreWeave's report nevertheless helped stocks across the industry 
claw back some of their sharp recent losses.

   Micron Technology, which sells memory for computers, rallied 11.9%. Broadcom 
rose 4%. GE Vernova, which is helping to power AI data centers, added 1.4%.

   Even Nvidia climbed 2.9%.

   The chip company that quickly became the face of the AI boom had been 
falling earlier this week for reasons that have nothing to do with the rest of 
the industry. Its board is investigating its CEO, Jensen Huang, after he 
admitted to a relationship with a businesswoman who allegedly fed intelligence 
and advanced chips to China.

   Outside of tech, Fossil Group soared 26.7% after the seller of watches, 
handbags and other products reported a stronger profit for the latest quarter 
than analysts expected. It also raised its forecast for revenue this year.

   Trading elsewhere on Wall Street was more mixed.

   United Airlines lost 1.8% as stocks broadly felt pressure from a rise in oil 
prices, which recovered some of their losses from earlier in the week.

   The price for a barrel of Brent crude added 1.4% to $92.76. It's near the 
middle of its $72 to $120 range since the war with Iran sent oil prices much 
higher early this year.

   Higher oil prices tend to push yields upward in the bond market, but the 
U.S. bond market was closed Wednesday in observance of Veterans Day.

   Yields jumped in the bond market the day before following a 
worse-than-expected reading on inflation in the United States. The discouraging 
report raised expectations for coming hikes to interest rates by the Federal 
Reserve.

   Higher yields mean higher rates for mortgages, and companies in the 
real-estate industry continued to fall Wednesday. Homebuilders D.R. Horton sank 
1.5% and PulteGroup slipped 0.8%.

   All told, the S&P 500 rose 98.45 points to 7,619.38. The Dow Jones 
Industrial Average added 254.60 to 52,486.49, and the Nasdaq composite rallied 
400.31 to 25,466.19.

   In stock markets abroad, indexes rose across much of Europe and Asia.

   South Korea's Kospi jumped 2.6% for one of the world's biggest moves, while 
Hong Kong's Hang Seng was an outlier after falling 1%.

   Stocks rose 0.5% in Shanghai as China's biggest online shopping festival, 
Singles Day, began Wednesday. Its sales data will offer a gauge of how strong 
spending is in the world's second-largest economy.

   ___

   AP Writers Elaine Lai and Michelle Chapman contributed to this report.

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