US stocks close higher as SpaceX, Tesla rally lifts technology shares

By Mucahithan Avcioglu

ISTANBUL (AA) - US stocks closed higher Wednesday as gains in SpaceX and Tesla boosted technology shares, with investors assessing corporate earnings and prospects for artificial intelligence spending.

The Dow Jones industrial average rose 360.21 points, or 0.69%, to 52,856.09.

The S&P 500 gained 0.58% to 7,757.17, extending its winning streak to three sessions, while the Nasdaq composite climbed 1.05% to 26,702.86.

SpaceX shares surged 7.8% after the company reported a 161% year-on-year increase in third-quarter revenue, supported by growth in its artificial intelligence business and Starlink subscribers.

Elon Musk also said SpaceX and Tesla had formed special committees to discuss a potential merger. Tesla shares gained more than 3.4%.

SpaceX's ninefold growth in its AI business helped revive investor appetite for semiconductor stocks despite lingering concerns about the scale of spending on AI infrastructure and reliance on debt financing.

Advanced Micro Devices advanced more than 3.3%, while Nvidia rose more than 2.5%. Micron Technology and Marvell Technology each gained nearly 2%.

Netflix bucked the broader gains, falling more than 5% after its full-year revenue outlook missed analysts' expectations. The streaming company also lowered its annual advertising revenue guidance.

Investors were also monitoring quarterly results from major companies, including Tesla, Meta Platforms, IBM and Southwest Airlines.

- European stocks advance on strong earnings

European stock markets also closed higher Wednesday as strong corporate earnings supported sentiment despite continuing geopolitical uncertainty.

The benchmark Stoxx Europe 600 index rose 0.92% to 644.49.

Germany's DAX gained 1.35% to 25,645.04, while Italy's FTSE MIB advanced 1.17% to 49,643.69.

France's CAC 40 climbed 1.06% to 7,921.68, and Britain's FTSE 100 added 0.19% to 10,752.88.

The gains came despite continued concerns about the economic impact of intensifying protests in France.

Mücahithan Avcıoğlu