US stock markets opened higher on Wednesday, as upbeat results from SpaceX and Super Micro Computer lifted sentiment around artificial intelligence (AI) and space stocks. However, a weaker-than-expected profit forecast from Netflix weighed on the streaming company's shares.
The Dow Jones Industrial Average dipped 8.09 points, or 0.02%, to 52,487.79 at 9:31 a.m. The S&P 500 gained 12.87 points, or 0.15%, to 7,724.27, while the Nasdaq Composite advanced 127.66 points, or 0.48%, to 26,554.14.
Elon Musk's SpaceX saw its shares surge upto 10% after the company reported a 161% rise in third quarter revenue. Tesla is also up 3% ahead of its earnings.
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The gains come after a turbulent period for semiconductor stocks. The Philadelphia Semiconductor Index recently recorded eight consecutive sessions of declines, its longest losing streak in 18 years, and continued to trade near two-month lows.
Investors have been reassessing the sustainability of AI-related investments, particularly those financed through debt. Concerns intensified last week amid worries that spending on data centres and computing infrastructure may not generate adequate returns.
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