Global Markets:
● Asian Stock Markets : Nikkei down 1.76%, Shanghai Composite down 0.89% Hang Seng down 2.91% ASX down 0.38%
● Commodities : Gold at $4,107.70 (-1.04%) Silver at $56.390 (-2.28%), Brent Oil at 110.68 (1.73%), WTI Oil at 98.52 (1.41%)
● Rates : US 10-year yield at 5.086, UK 10-year yield at 5.3833, Germany 10-year yield at 3.4151
News & Data:
● (USD) Crude Oil Inventories 3.1M to 0.1M expected
Markets Update:
U.S. stocks rose on Wednesday as strong revenue growth at SpaceX and potential merger discussions with Tesla boosted technology shares and renewed enthusiasm for artificial intelligence-related investments.
The Nasdaq Composite gained 1.05% to close at 26,702.86, while the S&P 500 advanced 0.58% to 7,757.17. The Dow Jones Industrial Average climbed 360.21 points, or 0.69%, to finish at 52,856.09.
SpaceX shares surged 7% after the company reported 161% revenue growth in the third quarter. Elon Musk also revealed that SpaceX and Tesla had established special committees to discuss a potential merger. Tesla shares rose more than 3% ahead of its earnings report.
SpaceX’s artificial intelligence business expanded ninefold, lifting semiconductor stocks. Advanced Micro Devices gained more than 3%, Nvidia rose over 2%, and Micron Technology and Marvell Technology advanced nearly 2%. The VanEck Semiconductor ETF also climbed close to 2%.
Despite renewed optimism, investors remain concerned about the sustainability of AI-related investments, particularly debt-funded spending and whether infrastructure demand justifies substantial capital expenditures. However, Cresset Chief Market Strategist Joe Zidle expects earnings reports to demonstrate continued strength across the sector.
Investors also awaited quarterly results from Meta Platforms, IBM and Southwest Airlines after Wednesday’s close.
Netflix shares fell more than 5% after its full-year revenue forecast missed analysts’ expectations. The streaming company also lowered its advertising revenue guidance, weighing on its stock during the session.
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