U.S. stock markets edged higher Wednesday, with strong earnings from SpaceX, Capital One Financial, and other companies offsetting disappointing updates from Netflix and AT&T. The S&P 500 rose 0.7%, the Dow Jones Industrial Average gained 0.6%, and the Nasdaq composite climbed 1.2%. SpaceX led the gains, surging 6.9% after reporting higher-than-expected profits. Elon Musk also hinted at a potential merger between SpaceX and Tesla, which rose 3.6%. Other standout performers included Capital One Financial (+3.8%) and Winnebago Industries (+9.7%).
Despite reporting stronger profits than expected, Netflix fell 4.4% due to concerns about slowing momentum. The company’s revenue forecast for the final quarter of the year fell short of analysts’ expectations. AT&T also dropped 6.1% after its earnings forecast disappointed investors. AI stocks remained volatile, with CoreWeave swinging between gains and losses before settling at a 0.3% increase. Nvidia, however, rose 2.4%, contributing to the S&P 500’s gains.
Super Micro Computer, which sells AI servers, reported stronger-than-expected revenue due to increased demand for AI platforms, sending its stock up 9.3%. The yield on the 10-year Treasury fell slightly to 5.11%, offering some relief to borrowing costs. Oil prices remained unstable, fluctuating between $97 and $112 per barrel in October. Internationally, European markets rose, while South Korea’s Kospi jumped 3.3%, driven by AI stock strength.