US stocks advanced on Wednesday as strong earnings from SpaceX and renewed enthusiasm for artificial intelligence encouraged investors to return to technology shares.
The Nasdaq Composite gained 1.05% to 26,702.86, while the S&P 500 rose 0.58% to 7,757.17. The Dow Jones Industrial Average climbed 360.21 points, or 0.69%, to 52,856.09.
SpaceX shares surged 7% after the company reported a 161% increase in third-quarter revenue, supported by rapid growth in its artificial intelligence business. Tesla advanced more than 3% after Elon Musk revealed that the two companies had formed special committees to explore a potential merger.
Semiconductor stocks also rallied, with AMD gaining more than 3%, Nvidia rising over 2%, and Micron Technology and Marvell Technology each advancing nearly 2%. The gains marked a recovery in sentiment towards AI-related companies following recent concerns about heavy borrowing, infrastructure spending and whether future demand would justify elevated valuations.
Investors are now focused on upcoming results from Meta Platforms and Tesla for further evidence of the strength of AI investment and corporate earnings. Elsewhere, Netflix shares tumbled more than 5% after its full-year revenue forecast fell short of expectations and the company lowered its advertising revenue guidance. European bond markets remained under pressure, with France’s 10-year government bond yield reaching 5% for the first time since 2002 amid political and economic uncertainty.
Australian Market Outlook
Australian shares are set for a largely flat start, with S&P/ASX 200 futures up 1 point to 8,848. The subdued outlook comes despite gains on Wall Street, as investors await earnings from major US technology companies for further direction on the AI trade. Locally, the resources sector will be in focus, with Fortescue and Northern Star among companies scheduled to release quarterly updates. BHP, ASX Limited, IAG and Cleanaway will also hold annual general meetings, providing investors with further insights into corporate performance and outlooks. Overseas, results from Meta, Tesla, IBM and SAP will be closely watched for indications of technology spending, earnings growth and broader market sentiment.
