Financial Markets                      11/11 15:27

   

   NEW YORK (AP) -- Most U.S. stocks rose on Tuesday and carried the market 
back to where it was before last week's swoon.

   The S&P 500 added 0.2% after erasing a loss taken during the morning. It's 
been bouncing around lately, coming off Monday's vigorous rebound following its 
first losing week in four.

   The Dow Jones Industrial Average rallied 559 points, or 1.2%, to a record, 
surpassing its prior all-time high set two weeks ago. The Nasdaq composite 
lagged the market, though, as Nvidia got back to falling amid continued 
concerns that stocks caught up in the artificial-intelligence frenzy may have 
become too expensive. The Nasdaq dipped 0.3%

   Helping to lead the market was Paramount Skydance, which jumped even though 
the entertainment giant reported revenue and profit for the latest quarter that 
fell short of Wall Street's expectations.

   It was the company's first earnings report since Skydance closed its 
acquisition of Paramount in early August, and investors appeared to be 
encouraged that it raised its cost-cutting target to at least $3 billion from 
the previous $2 billion. Its stock leaped 9.8%.

   Close behind was FedEx, which climbed 5.4% after it increased its forecast 
for profit in the current quarter. Instead of expecting growth from just the 
summer, the delivery company now also expects profit to rise in this year's 
holiday-shopping season from last year's.

   They helped pull the S&P 500 back within 0.6% of its all-time high, which 
was set two weeks ago.

   They also helped offset a 3% drop for Nvidia, which is Wall Street's most 
influential stock because of its massive size.

   A major investor in Nvidia, Japanese technology giant SoftBank, said it had 
sold its entire stake in the AI chip company for $5.83 billion last month. 
SoftBank is not giving up on AI. It's still focusing on OpenAI, the maker of 
ChatGPT.

   A big question on Wall Street has been whether investors will push the 
frenzy around AI stocks further. Their sensational growth has been one of the 
top reasons the U.S. market has hit records despite a slowing job market and 
still-high inflation. But their prices have shot so high that critics say 
they're reminiscent of the 2000 dot-com bubble, which ultimately burst and 
dragged the S&P 500 down by nearly half.

   CoreWeave, whose cloud platform helps customers running AI workloads, fell 
16.3% even though it reported a smaller loss for the latest quarter than 
analysts expected.

   Its revenue also topped expectations, and financial analysts praised its 
momentum. But investors seemed to focus instead on supply-chain issues that are 
delaying a data center and pushing some of CoreWeave's revenue further into the 
future.

   Back on the winning side of Wall Street, BigBear.ai rose 6.1% after 
reporting better results for the latest quarter than analysts expected. It also 
said it would buy AskSage, a generative AI platform built for national-security 
agencies and other highly regulated areas, for $250 million.

   All told, the S&P 500 added 14.18 points to 6,846.61. The Dow rallied 559.33 
to 47,927.96, and the Nasdaq composite slipped 58.87 to 23,468.30.

   In stock markets abroad, indexes rose in Europe following a mixed finish in 
Asia.

   Japan's Nikkei 225 slipped 0.1% even though SoftBank climbed 2%. Besides the 
sale of its Nvidia stake, the tech giant also reported a much bigger profit 
than analysts expected.

   In the U.S. bond market, trading was closed for the Veterans Day holiday.

   Yields have been generally rising since Federal Reserve Chair Jerome Powell 
warned last month that further cuts to interest rates are not a sure thing. The 
Fed has already cut its main interest rate twice this year in hopes of shoring 
up the slowing job market. But it's worried that inflation, which has 
stubbornly remained above the Fed's 2% target, could reaccelerate.

   What's making the Fed's job potentially more difficult is that the U.S. 
government's shutdown has delayed important updates on jobs and other areas of 
the economy. The Senate has made moves to end what's become the longest-ever 
shutdown, but it's not assured.

   That has left the Fed and investors looking at reports coming from sources 
outside of the government, which have offered a mixed picture.

   A job tracker at Goldman Sachs suggests growth slowed in October from 
September. After including the effect of a deferred resignation program at the 
government, U.S. employers overall may have cut 50,000 jobs in October, 
according to economist David Mericle.

   Such softening in the job market has traders betting on a roughly 
two-in-three chance that the Fed will cut interest rates at its next meeting in 
December, according to data from CME Group. Expectations for such cuts, which 
Wall Street loves because they can goose the economy and investment prices, are 
another reason stocks have hit records recently.

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   AP Business Writers Chan Ho-Him and Matt Ott contributed.

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