Nvidia weighs on Wall Street after SoftBank sells stake, ASX set to rise
CoreWeave, whose cloud platform helps customers run AI workloads, fell 13.8 percent on Tuesday even though it reported a smaller loss than analysts expected in its latest quarter. Its revenue also beat expectations, and financial analysts praised the momentum. But investors instead seemed focused on supply chain issues that delayed the data center and pushed some of CoreWeave’s revenue into the future.
BigBear.ai, which has been on Wall Street’s winning side, rose 6.9 percent in the latest quarter after reporting better results than analysts expected. It also said it would acquire AskSage, a productive AI platform built for national security agencies and other highly regulated fields, for $250 million.
Outside of AI, Paramount Skydance rose 9.9 percent even as the entertainment giant fell short of Wall Street’s revenue and profit targets. This was the company’s first earnings report since Skydance closed its acquisition of Paramount in early August, and investors were apparently encouraged to raise Skydance’s 2026 cost-cutting target to $3 billion from the previous $2 billion.
In foreign stock markets, indices rose in Europe following the mixed closing in Asia.
Japan’s Nikkei 225 fell 0.1 percent even as SoftBank rose 2 percent. In addition to selling Nvidia shares, the tech giant also reported a much larger profit than analysts expected.
Trading in the US bond market is closed for the Veterans Day holiday.
Loading
Yields have generally been rising since Federal Reserve Chairman Jerome Powell warned last month that further cuts in interest rates were not warranted. The Fed has already cut its key interest rate twice this year in hopes of supporting a slowing job market. However, there are concerns that inflation, which stubbornly remains above the Fed’s 2 percent target, will accelerate again.
What makes the Fed’s job potentially even more difficult is that the U.S. government shutdown is delaying important updates on employment and other areas of the economy. The Senate has made moves to end the longest shutdown ever, but that’s far from certain.
That left the Fed and investors looking at reports from sources outside the government that presented a mixed picture.
A business tracker at Goldman Sachs suggests that growth slowed in October compared to September. Factoring in the impact of the government’s delayed resignation program, U.S. employers may have cut 50,000 jobs in October, according to economist David Mericle.
Such softening in the labor market has investors betting that there’s about a two-in-three chance the Fed will cut interest rates at its next meeting in December, according to data from CME Group. Expectations of such disruptions, which Wall Street loves because they can undermine the economy and investment prices, are another reason why stocks have hit records recently.
access point
The Market Summary newsletter is a summary of the day’s transactions. Let’s each take ittoday afternoon.
