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.
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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.