SpaceX Surge Lifts Wall Street as Asia Slides

SpaceX surge lifts Wall Street as Asia slides, while oil climbs and traders await US unemployment claims data.

US 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 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, and Tesla shares rose more than 3% ahead of its earnings report.

SpaceX’s artificial intelligence business expanded ninefold, and that growth lifted semiconductor stocks. Advanced Micro Devices gained more than 3%, Nvidia rose over 2%, and Micron Technology and Marvell Technology each advanced nearly 2%. The VanEck Semiconductor ETF also climbed close to 2%.

SpaceX Surge Lifts Wall Street as Asia Slides

Even so, investors still worry about the sustainability of AI-related investment, particularly debt-funded spending and whether infrastructure demand justifies such heavy capital expenditure. Cresset Chief Market Strategist Joe Zidle, however, expects earnings reports to show continued strength across the sector.

Netflix bucked the positive trend. Its shares fell more than 5% after its full-year revenue forecast missed analyst expectations, and the company also lowered its advertising revenue guidance. Meanwhile, investors awaited quarterly results from Meta Platforms, IBM, and Southwest Airlines after Wednesday’s close.

Asian markets traded lower on Thursday. Hong Kong’s Hang Seng led the declines with a 2.91% drop, while Japan’s Nikkei 225 fell 1.76%, the Shanghai Composite lost 0.89%, and Australia’s ASX slipped 0.38%.

Oil prices moved higher. Brent crude gained 1.73% to $110.68 per barrel, and WTI rose 1.41% to $98.52. Gold, by contrast, fell 1.04% to $4,107.70, and silver dropped 2.28% to $56.390.

Bond yields stayed elevated, with the US 10-year yield at 5.086, the UK 10-year yield at 5.3833, and the German 10-year yield at 3.4151.

Traders now turn to US Crude Oil Inventories, which analysts expect at 0.1 million barrels against a prior reading of 3.1 million. Weekly US Unemployment Claims follow at 12:30 PM GMT and could influence both the dollar and broader risk sentiment as the session unfolds.

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