Global stock markets rose on Wednesday, driven by news that Elon Musk's SpaceX reported its first quarterly profit as a publicly traded company. The announcement, released after the close of Tuesday's trading on Wall Street, lifted technology stocks in particular.
SpaceX shares jumped 9.5 percent as trading began in New York, while the tech-heavy Nasdaq Composite advanced 0.6 percent. The company's net profit for July through September was $4.4 billion, more than double what analysts had expected and a sharp contrast to a loss of $1.1 billion a year earlier. Revenue soared 161 percent to $14.6 billion for the firm, which listed after a world-record initial public offering in June.
Patrick O'Hare, a market analyst at Briefing.com, noted that SpaceX delivered impressive earnings and guidance, including a statement that it could rent out its AI compute capacity many times over if able. He said this was relief for investors in companies like CoreWeave and Nebius. Shares and bonds of these firms, which have borrowed heavily to build AI data centers, had taken a beating last week as investors worried high interest rates could sink their business models.
Server-maker Super Micro Computer also aided buying sentiment by reporting that preliminary quarterly earnings had come in better than forecast. These developments soothed worries on trading floors about the outlook for the AI boom, which has seen companies invest hundreds of billions in research and development for software and data centers. Tim Waterer, an analyst at KCM Trade, said clear earnings beats and constructive corporate updates are helping ease recent AI anxiety.
The next test for AI sentiment is Wednesday evening, when Tesla and Meta report their results after Wall Street closes. Waterer said that if both companies deliver strong results and guidance, it could reignite broader AI enthusiasm and provide the sector with more sustained momentum.
In Seoul, the stock price of tech infrastructure firm Elice soared nearly 30 percent after it had dropped on its trading debut Tuesday. In Paris, the stock market climbed one percent in afternoon deals amid extreme movement among individual stocks. EssilorLuxottica surged more than 14 percent after announcing a 24 percent jump in sales of lenses that help slow short-sightedness in children.
Conversely, supermarket giant Carrefour plunged more than 13 percent after warning that violent protests across France would dent profits. Chief executive Alexandre Bompard stated that around 50 Carrefour stores were looted over the weekend. The company expects operating profit to be cut by 80 million to 200 million euros as a result.
French government debt yields hit a peak not seen since 2002, as the 10-year benchmark bond rate briefly exceeded five percent. This rise reflected investor demands for higher returns during the ongoing budget dispute and civil unrest.
Currency markets also moved on economic data. The British pound strengthened against both the dollar and the euro. Analysts attributed this shift to UK inflation figures released last month that exceeded expectations, which they said raised the odds of the Bank of England increasing its benchmark interest rate next month.