NEW YORK: Global stock markets mostly advanced on Wednesday after SpaceX reported its first quarterly profit as a publicly traded company, lifting technology shares and easing investor concerns over artificial intelligence (AI) investments.
Shares in the Elon Musk-led company rose more than 12% at their peak before closing at US$159.31, up nearly 8%.
SpaceX recorded a net profit of US$4.4 billion for the July-to-September quarter, more than double analysts’ expectations and a turnaround from a US$1.1 billion loss in the same period last year.
Revenue surged 161% to US$14.6 billion, following the company’s record initial public offering in June.
Market analyst Patrick O’Hare of Briefing.com said the results were impressive, highlighting the company’s growth prospects and the potential to generate additional revenue by renting out its artificial intelligence computing capacity.
The earnings report also lifted sentiment ahead of results from other major technology companies, including Facebook parent Meta Platforms and electric vehicle maker Tesla.
Peter Cardillo of Spartan Capital Securities said SpaceX had helped restore investor confidence in AI, adding that continued strong corporate earnings could support a broader market rally towards the end of the year.
All three major US stock indices closed higher, with the Nasdaq leading gains at 1.1%, despite Netflix shares falling 5.3% following its latest earnings report.
Investors are also watching Meta’s AI strategy and spending plans. IG chief market analyst Chris Beauchamp said the company’s AI model had received a positive response, but sustained investment would be necessary to remain competitive.
He added that Meta would need to convince investors that its spending would translate into long-term growth.
Elsewhere, markets in Japan, South Korea and the United Kingdom also advanced.
In Paris, the benchmark stock market index gained 1.1%, although individual companies experienced sharp movements.
EssilorLuxottica shares surged more than 16% after the eyewear manufacturer reported a 24% increase in sales of lenses designed to slow the progression of short-sightedness in children.
In contrast, supermarket operator Carrefour plunged more than 13% after warning that violent protests across France would affect its earnings.
Chief executive Alexandre Bompard said around 50 Carrefour stores had been looted over the weekend. The company expects the damage to reduce its operating profit for the year by between €80 million and €200 million.
Meanwhile, the yield on France’s benchmark 10-year government bond closed above 5% for the first time since 2002, reflecting investor concerns over the country’s budget dispute and ongoing unrest.
French police also announced restrictions on demonstrations in parts of Paris on Thursday, covering major sites including the Élysée Palace, Parliament, the Louvre Museum and the Champs-Élysées.
The contrasting market performances highlighted how strong corporate earnings and optimism surrounding AI continued to support equities, while political uncertainty and civil unrest weighed on sentiment in parts of Europe.
-THESUN
