US stocks rise at open, SpaceX surges on first profit

Wall Street stocks opened higher on Wednesday, buoyed by a string of well-received earnings reports. SpaceX's first profit provided reassurance to investors about the financial outlook for the artificial intelligence (AI) ecosystem.

Adam Sarhan of 50 Park Investments noted that easing bond yields and expectations of slowing inflation, along with lower agricultural commodity prices, were alleviating some of the negative factors that had been dragging the market down in recent weeks. He also pointed out that gasoline prices had come down significantly, removing fears that the Federal Reserve would raise interest rates and negatively impact the economy and stock market.

SpaceX, the rocket and AI giant led by Elon Musk, saw a surge in demand at the opening bell. Following its quarterly results, which included a first profit of US$4.4 billion, SpaceX's stock rose 8.36% to US$160.15 in early trading. However, it remains below its June highs of around US$225. Sarhan highlighted that SpaceX represents a significant portion of its business currently, and the AI sector is growing rapidly. Consequently, there is a sense of relief as AI stocks that had been heavily beaten down begin to recover.