Stocks rise as traders assess latest raft of earnings; SpaceX shares surge: Live updates

The US stock market began the trading day on an upward trajectory on Wednesday, with major indices recording gains. The Dow Jones Industrial Average climbed 0.34%, the tech-focused Nasdaq Composite soared 0.67%, and the comprehensive S&P 500 surged 0.31%.

Investors appeared buoyed by a series of strong earnings reports, with SpaceX leading the charge. The company, known for its aerospace and artificial intelligence (AI) ventures, reported its first ever profit of $4.4 billion, sending its shares surging 8.36% to $160.15 in early trading. Despite this impressive rise, SpaceX's stock price remains below the peak of around $225 it reached in June.

Analysts attribute the market's positive start to several factors. Lower bond yields, expectations of decelerating inflation, and a decrease in gasoline prices have all contributed to a sense of relief among investors. Adam Sarhan of 50 Park Investments noted that the market fears surrounding potential Federal Reserve rate hikes have subsided. This has alleviated concerns about the Fed's potential to dampen economic growth and the stock market.

SpaceX's success in the AI sector is seen as particularly encouraging. The company's business heavily relies on AI, which is experiencing rapid growth. As such, the company's first profit is viewed as a positive indicator for the broader AI ecosystem. Sarhan believes this has sparked a "relief rally" across AI stocks that had previously been undervalued.