CoreWeave shares jump 7.9% ahead of Fed decision to hold rates at 3-3/4% to 4%

Key Facts

CoreWeave shares jumped 7.9% in Tuesday’s Oct. 27 session, extending gains through the day after several days of sharp swings, according to the Associated Press. The stock closed at $59.57, up 7.94%, after trading between $55.36 and $59.95 during the session, according to Investing.com data. The move came a day before the Federal Reserve decision; on Oct. 28, the Federal Open Market Committee announced it would keep the target range for interest rates at 3-3/4% to 4%. The sequence of events therefore does not establish that the rate hold caused the stock’s rise. The distinction comes as the company is affected by financing costs because it borrows to buy AI chips and then leases them to customers through cloud computing services.

The Fed approved its decision by a 10-2 majority, in a vote that revealed divisions within the committee over its next move. Lisa Cook and Beth Hammack voted against the decision, preferring to raise the target range by a quarter of a percentage point. In its statement, the committee described economic activity as expanding at a “solid pace” and said inflation “remains elevated.” It added that job gains had remained low and unemployment had changed little. It also pointed to resilient consumer spending, strong productivity growth and robust capital investment, factors in its assessment of the economy alongside persistent elevated inflation.

The rate hold followed the Fed’s quarter-point increase the previous month, despite stronger-than-expected inflation data and concerns about broadening price pressures, according to a Reuters report. The report said the committee was waiting for more data on inflation’s trajectory and that the statement’s wording left the possibility of further tightening open if prices evolved that way. After the decision, Reuters described the market reaction as limited: U.S. stocks pared gains slightly, while Treasury yields continued to rise. The 10-year U.S. Treasury yield reached 5.042% after the announcement. These moves describe the market’s response to the Oct. 28 decision and do not by themselves explain CoreWeave’s jump in the previous session.

Company data illustrate some of CoreWeave’s financing needs as it expands its computing capacity. In September, it said it had added more than $25 billion in net new customer commitments early in the third quarter, commitments that were not included in its backlog as of June 30, 2026. It also said its contracted power capacity had risen to about 4.2 gigawatts on Aug. 11, from about 3.7 gigawatts on June 30. In the third quarter, the company signed short-term contracts lasting about 3 to 6 months, priced at about $40 million per megawatt on an annualized revenue basis. The company warned that contracting new capacity and improving pricing face risks including capital market conditions, financing costs and availability.

After the Fed decision, market pricing cited by Reuters showed an approximately 80% chance of a rate hike at the December meeting, with another hike possible by March. Fed Chair Kevin Warsh said he did not want to prejudge upcoming meeting decisions and offered no guidance on the policy path after the decision. The committee’s calendar set its next meeting for Dec. 8 and 9, 2026, putting upcoming inflation data at the center of investors’ monitoring of the rate outlook. Among the near-term data Reuters cited was the U.S. personal consumption expenditures report due Thursday, as another indicator of the monetary policy direction. Traders were also awaiting results from Microsoft and Alphabet after the market close, focusing on signals about capital spending and returns on AI investments.