U.S. Stocks Rally as AI Sector Recovers Losses

U.S. stock markets recovered significant ground following a sharp AI-related selloff that saw the S&P 500 drop more than 4% on a single Thursday. The rebound began on Friday, with the Nasdaq 100 climbing 1.7% and the S&P 500 increasing 0.8%, supported by an October jobs report showing 165,000 new jobs, which exceeded forecasts.

CoreWeave drove further gains by Wednesday, with its stock leaping 24.7% after the company reported lower-than-expected summer losses and raised its annual revenue forecast. CEO Michael Intrator noted the company expects roughly $9 billion in customer prepayments and deposits over the next three months. This momentum extended to other AI-linked firms including Micron Technology and Broadcom.

Despite the rally, Nvidia faces internal turmoil as its board investigates CEO Jensen Huang. Huang admitted to a relationship with a businesswoman who allegedly provided intelligence and chips to China. In other sectors, Fossil Group shares soared 26.7% on strong profit reports, while real-estate stocks declined amid inflation concerns and expectations that the Federal Reserve System will hike interest rates.