SpaceX Rally Drives Nasdaq Higher as S&P 500 Extends Advance

The Nasdaq Composite closed higher on Wednesday, extending the S&P 500's winning streak to a third consecutive day as a post-earnings surge in SpaceX shares lifted the technology sector. The tech-heavy Nasdaq gained 1.1% to finish at 26,702.86, while the S&P 500 rose 0.6% to 7,757.17. The Dow Jones Industrial Average also advanced, climbing 0.7% to 52,856.09.

SpaceX shares jumped 7.8% following a late Tuesday report that the satellite and rocket company swung to a third-quarter profit on a year-on-year basis. Revenue surpassed Wall Street expectations, driven by significant growth in its artificial intelligence and connectivity divisions. Elon Musk, who leads both SpaceX and Tesla, disclosed late Tuesday that the two companies have established special committees to evaluate a potential merger. Saxo Bank noted in a Wednesday report that such a deal could facilitate technology sharing, reduce overlapping costs, and accelerate development, estimating the combined market value of the two firms at approximately $3.5 trillion.

Tesla shares climbed 3.4% ahead of its quarterly earnings release scheduled after the Wednesday closing bell. Meta Platforms was also set to report results after hours. Super Micro Computer shares surged 9.6%, marking the second-largest gain on the S&P 500, after the company reported upbeat preliminary revenue for its first fiscal quarter late Tuesday.

Not all sectors participated in the broad rally. Communication services led the laggards among major sector groups. AT&T was the worst performer on the S&P 500, falling 6.5% despite raising its full-year earnings outlook following stronger-than-expected third-quarter results; however, postpaid phone subscriber growth missed projections. Netflix shares slumped 5.3% after the streaming company provided a downbeat outlook for the fourth quarter late Tuesday.

In fixed-income markets, Treasury yields were mixed, with the two-year rate rising 2.1 basis points to 4.81% and the ten-year rate remaining little changed at 5.12%. Commodity prices showed mixed signals, with West Texas Intermediate crude oil edging down to $97.69 per barrel and Brent crude rising 0.7% to $109.58. Spot gold ticked up 0.2% to $4,134.47 per troy ounce, while silver finished little changed at $58.01 per ounce.