The U.S. stock market advanced on Wednesday, buoyed by robust earnings reports from several major companies including SpaceX and Capital One Financial. The Standard & Poor’s 500 index rose 0.6%, closing within 0.8% of its all-time high set earlier this month. The Dow Jones Industrial Average added 360 points, or 0.7%, while the Nasdaq composite increased 1.1%.
SpaceX led the gains with a 7.8% rise after reporting stronger-than-expected profits for the summer. CEO Elon Musk also revealed that the company is exploring a potential merger with Tesla, his electric-vehicle manufacturer. Tesla shares rose 3.4%, contributing significantly to the S&P 500’s advance. Other notable performers included Capital One Financial, which climbed 2.5%, and Winnebago Industries, which surged 10.7% after reporting resilient profits despite challenges such as high fuel costs and reduced consumer interest in more expensive recreational vehicles. Winnebago’s CEO Michael Happe noted that while the pricier towable RV models remain a tougher sell, demand remains steady for more affordable options.
Despite beating profit expectations, Netflix shares fell 5.3% due to concerns over slowing momentum. The company’s forecast for revenue growth in the final quarter came in below analyst projections, prompting investor caution. Similarly, AT&T’s stock dropped 6.4%, despite reporting a stronger quarterly profit, as its outlook for growth in an underlying earnings measure disappointed some analysts.
Artificial intelligence (AI) stocks, which have been a focal point on the market, displayed volatile performance amid concerns that soaring borrowing costs could slow the expansion of data centers. CoreWeave, a company that finances AI chip purchases leased to customers, experienced sharp intraday swings before closing down 0.5%. In contrast, other AI-related stocks showed more stability, with Nvidia rising 2.5% and Super Micro Computer jumping 9.5%. The latter raised its revenue forecast for the summer, citing increased demand for AI platforms.
In fixed income markets, yields on the 10-year U.S. Treasury note climbed back to 5.12% after an earlier dip. Oil prices remained volatile amid ongoing uncertainty related to the conflict with Iran, with Brent crude settling at $108.82 per barrel.
Internationally, European stock indices edged higher following mixed results in Asian markets. South Korea’s Kospi index gained 3.3%, supported by renewed strength in AI sector shares.