US tech stocks jumped on Wednesday, as better-than-expected results from CoreWeave and the prospect of a higher initial public offering valuation for Anthropic helped extend a rebound from last week’s Wall Street rout.

The Nasdaq 100 rose 2.3 per cent, meaning the tech-heavy index has recouped nearly all of last week’s 4.9 per cent drop. The S&P 500 gained 1.3 per cent.

Traders pointed to results late on Tuesday from cloud computing group CoreWeave, where revenue growth exceeded the company’s guidance, while the FT reported that Anthropic’s bankers were weighing plans to increase the AI company’s IPO valuation to $1.5tn or more in the coming days.

CoreWeave’s share price has halved since the summer after investors appeared to lose faith in the company’s debt-funded bet on AI revenues. CoreWeave shares were up 25 per cent on Wednesday.

“Investors are being whipsawed by news flow and sentiment, between this being a generational buying opportunity into AI or a classic value trap,” said Arun Sai, senior multi-asset strategist at Pictet.

The jump in US stocks helped lift the dollar back to its strongest level since April 2025, exceeding a high reached last month. The greenback has climbed more than 1 per cent against a basket of major currencies in the past two sessions following higher-than-expected US inflation figures, which cemented expectations of a Federal Reserve interest rate rise next month.

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Tech stocks have stumbled since setting their record high in early October, with concerns rising over the sustainability of the AI investment boom — and a growing political pushback in the US following last week’s midterm elections.

The Democrats’ sweeping victory in congressional races and key gubernatorial elections last week triggered an exodus from tech stocks, as investors worried that the party would attempt to slow the build-out of data centres across the country

.But after a sell-off last week — including the worst day for the Nasdaq 100 since 2020 — investors have been edging back into US tech stocks.

Manish Kabra, lead US equities and multi-asset strategist at Société Générale, said the stock market had “been discounting a slowdown [in AI] which has not even started”.Caroline Shaw, a portfolio manager at Fidelity International, said that she “took some profits” from her technology exposure in October.

Following last week’s brutal sell-off, “the question now is: should we start to rotate back to tech? That’s really the debate, rather than ‘is this the beginning of the end?’” she said.

In Europe, the Stoxx 600 gained 0.7 per cent while the UK’s FTSE 100 rose 0.8 per cent.“As long as the music is still playing, we keep dancing,” said Roger Lee, head of equity strategy at investment bank Cavendish, adding that hopes and fears over the future supply of financing were driving the AI trade.

“As long as the financing is there, the trade can continue,” he added.