Nasdaq 100 Climbs as SpaceX Results Fuel AI Trade: Markets Wrap
(Bloomberg) — A blockbuster earnings report from SpaceX spurred a rally in technology stocks, easing concerns over whether a global investment spree in artificial intelligence can prove sustainable.
Shares of the satellite, rocket and AI company surged 10%, with gains also fueled by Elon Musk’s remarks endorsing the prospect of a merger with Tesla Inc. The electric-car maker and Meta Platforms Inc. will report results later Wednesday. Super Micro Computer Inc. jumped on solid preliminary figures. The Nasdaq 100 outperformed major indexes as chipmakers bounced.
“So, does this signal that the worst is over when it comes to the selloff across tech, and in particular chip stocks, seen since the beginning of this month? Maybe,” said David Morrison at Trade Nation. “Certainly, there has been yet another impressive start to the earnings season.”
Investors’ anxiety over the durability of the AI boom had surged in recent weeks amid fears that the substantial upfront capital spending the technology needs will take longer than expected to translate into profits and productivity gains.
Billionaire Ken Griffin said investors are “almost certainly” in the midst of an AI bubble as many companies are still grappling with just how much they’ll spend on the technology and how it will transform the economy.
The AI Boom Is Setting Up the Fed for a Rate Seesaw: Bill Dudley
BlackRock Inc. Chief Executive Officer Larry Fink warned that delays in building data centers could raise computing costs and threaten economic growth as demand for AI accelerates.
“If we don’t build out these data centers, it is actually more inflationary because the cost of compute is so high right now,” Fink said in an interview on Bloomberg Television Wednesday, on the sidelines of the Berlin Global Dialogue event. “And the faster we can build out more data centers, the more compute we have, the faster we can bring down the cost.”
Elsewhere, the yield on benchmark French debt hit 5% for the first time since 2002 as elevated energy prices exacerbated concern over the country’s fiscal outlook.
Oil was little changed with attacks in the Strait of Hormuz continuing to menace supplies, though flows through the waterway remain robust. Iran said the US must lift its naval blockade and show it’s serious about ending the war diplomatically, as a deadlock over talks and growing threats from both sides fuel fears of a return to outright conflict.
Corporate Highlights:
Intel Corp. touted progress with its long-delayed US factory expansion, saying it was finishing up a plant in Arizona and making headway on the chipmaker’s newest site in Ohio. Netflix Inc. reported its slowest sales jump in three years and forecast a fourth consecutive quarter of slowing growth, a projection that amplifies concerns about the performance of the world’s leading online TV network. AT&T Inc. showed strong gains in internet and mobile phone customers in the third quarter, but it wasn’t enough to assuage market concerns about the looming entry of SpaceX into the consumer cellular market. Philip Morris International Inc. lowered its annual profit forecast due to currency movements, as it warned that rising energy costs from the Middle East conflict and strikes from Russia’s war on Ukraine are taking a toll. Capital One Financial Corp. reported third-quarter earnings that beat estimates as the largest US credit-card lender benefited from revenue climbing and kept its expenses in check. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.3% as of 11:09 a.m. New York time The Nasdaq 100 rose 0.9% The Dow Jones Industrial Average was little changed The Stoxx Europe 600 rose 0.8% The MSCI World Index rose 0.4% Currencies
The Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.1% to $1.1221 The British pound was unchanged at $1.3380 The Japanese yen was little changed at 158.16 per dollar Cryptocurrencies
Bitcoin rose 2.2% to $84,554.92 Ether rose 2.3% to $2,503.78 Bonds
The yield on 10-year Treasuries was little changed at 5.11% Germany’s 10-year yield advanced two basis points to 3.42% Britain’s 10-year yield declined two basis points to 5.39% Commodities
West Texas Intermediate crude was little changed Spot gold was little changed ©2026 Bloomberg L.P.
See more Swissinfo articles in your Google results. Learn more
