QUICK SPARK: CoreWeave Stock Soars 7% as Fed Holds Rates Steady, Warsh Fails to Signal a December Hike

CoreWeave Inc. (NASDAQ:CRWV) found relief on Wednesday from the one place that has been hurting it most: interest rates.

Shares of the AI cloud provider jumped about 6% after the Federal Reserve held rates at 3.75%-4% at 2 p.m. ET, and closed 7.3% higher at $63.93.

The rally came as Fed Chair Kevin Warsh declined to signal a December hike.

For CoreWeave, that matters more than for most. The company has funded its data-center buildout largely with debt, and higher borrowing costs have weighed on both its shares and its bonds.

“Interest rates get in the cracks,” Warsh said, noting that credit spreads for certain assets have widened since early September.

Even after Wednesday’s jump, the stock is down 26% over the past month, 14% year to date, and about 54% below its 52-week high of $138.36.

Chart: CoreWeave shares jump after the Fed’s 2 p.m. decision. Source: TradingView

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