(Nov 12) : A rally in tech giants lifted stocks on bets the artificial-intelligence trade that has powered the bull market has more room to run.

The revival of AI wagers sent the Nasdaq 100 up 2.3%, putting the gauge on track for its best week since May. The S&P 500 added 1.3%. Nvidia Corp. rose. CoreWeave Inc. jumped 25% on an upbeat outlook. More evidence of demand came from OpenAI, whose quarterly revenue hit US$10 billion, while Anthropic PBC’s IPO was said to be oversubscribed. European shares hit all-time highs.

The tech rebound eased concerns over whether Anthropic’s initial public offering would get done or not, said Matt Maley at Miller Tabak. A delay would have raised questions about whether the “AI bubble” was bursting, he noted.

With equities bouncing — and the “flight to safety” trade fading — Maley says fixed-income investors could be facing some renewed volatility for a while after recent economic data.

While cash trading in Treasuries was closed for Veterans’ Day, futures edged lower as the latest inflation report cemented wagers on Federal Reserve rate hikes. The dollar hit its highest since May 2025. Oil rose as traders weighed mixed signals on the prospects for an end to the Iran war.

The past week has served as a masterclass in how rapidly narratives can change in periods of heightened emotion, according to Mark Hackett at Nationwide.

While investors focus on AI uncertainty and inflationary pressure, there are several notable tailwinds that act as ballast, including a strong and steady macro backdrop, historic earnings growth, seasonal tailwinds and a complete reset of expectations, valuations and investor positioning, he added. 

“This has kept the market in a prolonged trading range despite an aggressive momentum and AI selloff,” said Hackett. “If that skepticism cools, the bulls will have a distinct advantage moving forward.”

The AI-investment theme remains intact, although capital spending and profit growth among many key industry players are likely to moderate over the coming year as the buildout matures, noted Brock Weimer at Edward Jones.

“We continue to favor US large-cap stocks, which we believe offer attractive exposure to the AI theme and trade at a discount to their 10-year average forward price-to-earnings multiple,” he said. His firm also favors mid-cap shares, which would benefit from economic strength.

uploaded by Isabelle Francis