CoreWeave, whose cloud platform helps customers running AI workloads, fell 13.8 per cent Tuesday even though it reported a smaller loss for the latest quarter than analysts expected. Its revenue also topped expectations, and financial analysts praised its momentum. But investors seemed to focus instead on supply-chain issues delaying a data center and pushing some of CoreWeave’s revenue further into the future.
On the winning side of Wall Street, BigBear.ai jumped 6.9 per cent after reporting better results for the latest quarter than analysts expected. It also said it would buy AskSage, a generative AI platform built for national-security agencies and other highly regulated areas, for $250 million.
Outside of AI, Paramount Skydance climbed 9.9 per cent, even as the entertainment giant fell short of Wall Street’s revenue and profit targets. It was the company’s first earnings report since Skydance closed its acquisition of Paramount in early August, and investors were apparently encouraged that it raised its 2026 cost-cutting goal to $US3 billion from the previous $2 billion.
In stock markets abroad, indexes rose in Europe following a mixed finish in Asia.
Japan’s Nikkei 225 slipped 0.1 per cent even though SoftBank climbed 2 per cent. Besides the sale of its Nvidia stake, the tech giant also reported a much bigger profit than analysts expected.
In the US bond market, trading is closed for the Veterans Day holiday.
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Yields have been generally rising since Federal Reserve Chair Jerome Powell warned last month that further cuts to interest rates are not assured. The Fed has already cut its main interest rate twice this year in hopes of shoring up the slowing job market. But it’s worried that inflation, which has stubbornly remained above the Fed’s 2 per cent target, could reaccelerate.
What’s potentially making the Fed’s job more difficult is that the US government’s shutdown has delayed important updates on jobs and other areas of the economy. The Senate has made moves to end what’s become the longest-ever shutdown, but it’s not assured.
That has left the Fed and investors looking at reports coming from sources outside of the government, which have offered a mixed picture.
A job tracker at Goldman Sachs suggests growth slowed in October from September. After including the effect of a deferred resignation program at the government, US employers overall may have cut 50,000 jobs in October, according to economist David Mericle.
Such softening in the job market has traders betting on a roughly two-in-three chance that the Fed will cut interest rates at its next meeting in December, according to data from CME Group. Expectations for such cuts, which Wall Street loves because they can goose the economy and investment prices, are another reason stocks have hit records recently.
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