Global stocks rise as SpaceX profit boosts tech shares

On Wednesday, global stock markets experienced a general uptick, propelled by the revelation that SpaceX, under Elon Musk's leadership, had achieved its first quarterly profit as a publicly traded company. This milestone specifically invigorated technology stocks. SpaceX's shares surged by over 10 percent during early trading in New York, while the tech-focused Nasdaq Composite index climbed by 1 percent.

The company's net profit for the July to September quarter stood at $4.4 billion, a substantial 2.5 times more than analysts had anticipated. This figure marked a stark contrast to the $1.1 billion loss the firm incurred in the same period the previous year. Revenue for SpaceX skyrocketed an impressive 161 percent to $14.6 billion.

Commenting on the earnings, market analyst Patrick O'Hare from Briefing.com noted, "SpaceX delivered some impressive earnings results and guidance, to go along with a pronouncement that it could rent out its AI compute capacity many times over if it was able." This development offered a sense of relief to investors in companies like CoreWeave and Nebius, which had faced significant challenges due to high interest rates.

Shares and bonds of these firms had plummeted the previous week, fueled by concerns over the viability of their business models in an interest rate-driven environment. Meanwhile, server manufacturer Super Micro Computer reported quarterly earnings that exceeded expectations, further boosting investor confidence. Looking ahead, the focus shifts to reports from Tesla and Facebook's parent company, Meta, which are due to be released after Wall Street closes for the day.

If these companies deliver similarly strong results and guidance, it could reignite AI enthusiasm and provide the sector with sustained momentum, according to KCM Trade analyst Tim Waterer. In Paris, the stock market closed up 1.1 percent, driven by sharp fluctuations in individual stocks. EssilorLuxottica, a leading eyeglasses maker, experienced a remarkable gain of over 16 percent after reporting a 24 percent increase in sales of lenses designed to slow myopia in children.

Conversely, supermarket chain Carrefour saw a steep decline of more than 13 percent following a warning that recent violent protests in France would negatively impact its profits. CEO Alexandre Bompard disclosed that around 50 Carrefour stores were looted over the weekend, and the company expects its operating profit to be reduced by 80 million to 200 million euros ($90 million to $225 million) as a result.

The yield on France's benchmark 10-year government bond surged briefly above 5 percent, its highest level since 2002, as investors sought higher returns amidst a budget deadlock and ongoing protests. In Frankfurt, the market closed up 1.4 percent, while in London, it gained 0.2 percent. In Asia, Seoul's Kospi index ended the day 3.3 percent higher, while Hong Kong's Hang Seng fell by 0.9 percent. Meanwhile, Brent crude oil prices ticked up by 0.3 percent to reach $109.16 per barrel.