US stocks rise on AI-led earnings
The Nasdaq led Wall Street to a higher close on Wednesday after quarterly results from SpaceX and Super Micro Computer improved investor appetite for artificial intelligence-related stocks while weakness in communication services stocks capped gains. SpaceX shares finished up 7.8 percent after Elon Musk's rocket and space technology firm posted its first profit as a public company. Musk said,…
On Wednesday, U.S. stocks saw an overall rise as artificial intelligence (AI)-related companies reported positive earnings, especially those connected to SpaceX and Super Micro Computer. SpaceX's stock surged 7.8 percent following its first profit as a public company, with CEO Elon Musk suggesting a merger with Tesla. Super Micro Computer's shares also jumped 9.6 percent after the AI server maker reported revenue and profit margin exceeding Wall Street estimates.
These reports alleviated investor concerns about AI spending sustainability and profitability. However, the communication services sector experienced a decline, with companies like AT&T, T-Mobile US, and Verizon Communications falling due to weaker-than-expected forecasts and a recent wireless spectrum purchase that raised concerns about competition.
Meanwhile, the technology sector, particularly the S&P 500 Information Technology index, gained 1.6 percent, indicating a positive outlook for AI investments.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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