Six of the 11 major S&P 500 sectors were in positive territory, with tech and energy leading gains. (EPA Images pic)NEW YORK: The S&P 500 and the tech-heavy Nasdaq climbed on Wednesday after neocloud firm CoreWeave's strong earnings calmed investor jitters about bloated AI expenditure.
CoreWeave's shares jumped 12.7% after the battered company said it would become profitable in the first half of 2028, on an adjusted basis, as it sought to reassure investors that strong demand and customer commitments could support its debt-fuelled expansion.
"CoreWeave was emblematic of the shift from viewing all AI investments as good investments to taking a more sober look at the returns on the billions of dollars being spent on AI. The earnings report helped ease some of those concerns," said Steve Sosnick, chief market analyst at Interactive Brokers.
