Technology · Malaysia Bureau
US stocks climb as AI infrastructure spending concerns ease
American equity markets gained ground as investor anxiety about artificial intelligence capital expenditure subsided following positive guidance from cloud infrastructure provider CoreWeave. The pullback in market volatility marked a fourth consecutive session of declining risk sentiment.
LSN Malaysia ·
Wall Street's major indices moved higher as the technology sector regained momentum, with the S&P 500 and Nasdaq extending recent gains. The rally reflected improved sentiment around the sustainability of artificial intelligence-driven infrastructure investments, a key concern for investors tracking the sector's profitability prospects.
CloudWeave's guidance that it would achieve profitability in the first half of 2028 provided reassurance to market participants worried about the returns on massive spending in AI data centres and computing infrastructure. The company's outlook suggested that the infrastructure buildout fueling the artificial intelligence boom could eventually deliver financial returns to investors.
The CBOE Volatility Index, a widely watched barometer of market stress and investor fear, declined for the fourth straight trading session. The pullback in the volatility measure indicated easing nervousness across equities markets as investors digested more optimistic signals about the trajectory of AI-related capital investments.
Analysts pointed to CoreWeave's profitability timeline as evidence that companies backing artificial intelligence infrastructure projects were executing disciplined business strategies. The outlook appeared to address earlier market concerns that AI spending was outpacing realistic timelines for generating returns, helping to restore confidence in technology sector valuations.