Stocks Rebound as Nvidia Backs CoreWeave Amid AI Investment Concerns — US Market Wrap

US stocks recovered as investors reassessed concerns about the sustainability of the artificial intelligence boom that has driven the market’s rally. The S&P 500 ended a three-day losing streak, while semiconductor shares stabilized after Nvidia CEO Jensen Huang defended the financial position of CoreWeave, a major AI computing provider and Nvidia customer in which the chipmaker also holds an investment. Fresh concerns about CoreWeave emerged after a measure of its credit risk climbed to a record high, raising questions about the financial stability of companies supporting the AI infrastructure expansion. These worries have contributed to the recent market selloff as investors question whether the enormous spending on data centers and computing capacity will generate sufficient returns. Meanwhile, Meta introduced one of its new AI models for developers to download and modify, while keeping its most advanced technology proprietary. The strategy reflects Meta’s effort to encourage wider adoption of its AI tools while protecting its most valuable technology and finding ways to turn its substantial AI investments into revenue.