(Updates with index/price moves, macroeconomic data, and company news from the first paragraph.)
US equity indexes rose as a rally in SpaceX (SPCX) and Super Micro Computer's (SMCI) shares boosted risk sentiment in growth sectors, while crude oil prices declined.
The Nasdaq Composite advanced 1.2% to 26,739.1, the S&P 500 climbed 0.6% to 7,757.9, and the Dow Jones Industrial Average edged up 0.4% to 52,681.9 after midday Wednesday. Technology, industrials, financials, and consumer discretionary topped the gainers. Communication services led decliners.
SpaceX, which also led Nasdaq's gainers, said late Tuesday it swung into the black in Q3 as revenue rose, driven by strong gains in its artificial intelligence and connectivity divisions. Meanwhile, Elon Musk, who heads both SpaceX and Tesla (TSLA), said the duo has formed special committees to evaluate a potential merger.
Super Micro Computer's shares surged 9% after the company reported preliminary fiscal Q1 revenue and margin results above expectations late Tuesday.
Netflix (NFLX) dropped 4.8%, among the worst performers on the S&P 500 and the Nasdaq, after the streaming giant's below-consensus Q4 outlook undermined better-than-expected Q3 earnings.
Seven of the top 10 stocks in a category with market capitalization exceeding $200 billion were from the technology sector, according to data compiled by Finviz. SpaceX topped this list of mega-caps, gaining 8.8%. The iShares PHLX Semiconductor Exchange Traded Fund (SOXX), with about $48.43 billion in assets under management, jumped 2.4% as investors continued to dip their toes back in the AI trade after last week's sharp sell-off.
In energy market news, US commercial crude oil stocks, excluding inventories in the Strategic Petroleum Reserve, fell by 3.1 million barrels in the week ended Oct. 16, after an 8.6-million-barrel decrease in the previous week, versus the 340,000-barrel decline expected in a Bloomberg-compiled survey.
The front-month West Texas Intermediate crude oil contract dropped 1.2% to $96.68 per barrel, and global benchmark Brent slipped 0.3% to $108.47 per barrel.
Gold futures edged up 0.2% to $4,150.2, while silver futures slipped 0.5% to $57.70.
In economic news, mortgage applications fell 5.3% in the week ended Oct. 16 amid declines in refinancing activity and new home applications, while borrowers whistled past the first drop in 30-year fixed mortgage rates in two months, according to the Mortgage Bankers Association. This follows a 2.7% decrease in overall activity in the week ended Oct. 9.
Most US Treasury yields fell after midday. The 10-year yield edged 1.3 basis points lower to 5.10%, while the 30-year rate fell 1.6 basis points to 5.41%. The two-year rate was little changed at 4.79%.
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