US stock futures are moderately higher after Tuesday’s decline, with Nasdaq 100 futures up around 0.5% and S&P 500 futures gaining about 0.2%. Markets are attempting to recover part of the losses triggered by hotter-than-expected CPI and a sharp rise in Treasury yields, while strong CoreWeave results are supporting AI stocks. At the same time, the 10-year Treasury yield nearly reached 5% yesterday, and a December Fed rate hike is now fully priced in.
3 Takeaways
The S&P 500 fell 0.38% on Tuesday, the Nasdaq lost 0.74%, and the Dow declined 0.30%.
Nasdaq futures are up around 0.5% this morning, while S&P 500 futures are gaining about 0.2%.
CoreWeave rose around 5% after hours after reporting strong revenue growth and backlog reaching $132.5 billion.
The main shock on Tuesday was not just the CPI reading itself, but the sharp repricing of the Fed outlook.
The 2-year Treasury yield jumped almost 19 basis points, while the 10-year yield rose around 13 basis points to 4.99%. The technology sector fell 1.4%, making it the worst-performing sector in the S&P 500.
Nvidia dropped another 5.4%. The stock has now lost around 10% over the past two sessions and is down close to 30% from its recent peak. The company is also facing an investigation involving CEO Jensen Huang, while investors remain concerned about the sustainability of the AI boom.
Corporate focus
CoreWeave provided a more positive signal for the AI sector after the closing bell.
Quarterly revenue surged almost 170% to $3.66 billion, beating expectations. Contracted backlog increased to $132.5 billion from $104 billion in June, while the company estimates demand at roughly ten times its available capacity.
However, the key question remains unchanged: the cost of financing AI growth is becoming increasingly important.
CoreWeave’s debt has already reached $46.9 billion, quarterly capital expenditure was $14.5 billion, and the company expects to reach adjusted profitability only in the first half of 2028.
In other words, strong AI demand is still there, but the cost of funding that growth becomes much harder to ignore when Treasury yields are near 5%.
Fed and rates
Following the CPI report, a 25-basis-point Fed rate hike in December is now almost fully priced in, while markets assign roughly a 10% probability to a 50-basis-point move.
US equity markets are open as usual today, but the Treasury market is closed for Veterans Day. This could reduce trading volumes and temporarily remove one of the main intraday signals for technology stocks.
Technical outlook
The S&P 500 closed Tuesday at 7,520.93.
Initial support is located around 7,500–7,520, followed by 7,450.
Resistance is seen around 7,560–7,600. Above that, the next target is 7,650.
For the recovery to continue, the index needs to hold above 7,500 and move back above 7,600.
FAQ
Why are futures rising after hot CPI?
The market is seeing a technical rebound after Tuesday’s sell-off, while strong CoreWeave results are providing support to the AI sector.
What is the main risk now?
Higher rates. The 10-year Treasury yield has moved close to 5%, which is particularly challenging for expensive growth stocks.
What matters today?
Technology stocks, CoreWeave and Nvidia. The US Treasury market is closed for Veterans Day.
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