TSX futures rise as CoreWeave reports strong quarterly results and AI optimism

Canadian equity futures moved up on Wednesday, with the S&P/TSX 60 index standard futures gaining 0.4% by early morning, according to Investing.com. The rise followed a 0.8% decline in the S&P/TSX composite index on Tuesday, which fell from a two-month high after hotter-than-expected U.S. inflation data raised expectations of a larger Federal Reserve rate hike.

AI infrastructure provider CoreWeave reported third-quarter revenue of $3.66 billion, a 168% increase from a year earlier and above Wall Street’s $3.55 billion estimate. The company also projected full-year sales of $13 billion to $13.3 billion, exceeding consensus, and posted a per-share loss of $1.27, narrower than analysts had expected. CoreWeave shares rose more than 14% in pre-market trading.

"Tech stocks are staging a robust rebound rally so far this morning thanks in large part to CoreWeave, as the company posted solid beat-and-raise results and (more importantly) provided reassurances over its ability to secure financing and convert its backlog to revenue," analysts at Vital Knowledge wrote.

The positive momentum extended to U.S. futures, with Nasdaq 100 futures up 1.8%, S&P 500 futures up 0.8% and Dow futures up 0.2%. The U.S. Treasury market was closed for Veterans Day, reducing one source of pressure on equities.

Anthropic, the maker of the Claude chatbot, announced plans for an initial public offering that could raise up to $64.4 billion at a fully diluted valuation of up to $1.4 trillion, according to Bloomberg News. Its filing showed quarterly revenue of $17 billion, up from $1.4 billion a year earlier, and is being watched as a gauge of AI-spending durability.

U.S. inflation data showed October headline consumer prices rising 0.4% month-over-month, above the 0.3% consensus, while core CPI advanced 0.3%, also exceeding forecasts. Fed Governor Christopher Waller indicated support for a December rate increase, and Dallas Fed President Lorie Logan said two more quarter-point hikes may be needed. CME FedWatch data showed a 91% probability of a quarter-point hike at the December meeting.

Nvidia shares fell about 5.5% amid reports of an internal probe related to alleged chip shipments to China, adding pressure to the broader AI sector.

In Canada, gold prices steadied after a prior decline, while crude oil rose after Iran stated that no nuclear material would leave the country, limiting expectations of a rapid de-escalation in the Middle East.

Analysts noted that CoreWeave’s results and Anthropic’s filing address key concerns about AI demand and financing, while the market remains attentive to U.S. rate expectations and commodity price movements ahead of the Fed’s December meeting.