Live Markets: AI stocks lead as earnings reignite risk appetite

Meta Platforms

Today 21:07

Main US indexes end higher; Nasdaq out front, up ~1.1%
Tech leads S&P 500 sector gainers; communication services is weakest group
Dollar, US crude slip; gold edges up; bitcoin rises ~2%
US 10-year Treasury yield flat at ~5.12%
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AI STOCKS LEAD AS EARNINGS REIGNITE RISK APPETITE
The Nasdaq .IXIC led Wall Street higher on Wednesday as strong results from SpaceX and Super Micro Computer rekindled enthusiasm for AI-related stocks, helping investors look past a sharp decline in Netflix after its outlook fell short of expectations.
SpaceX SPCX.O climbed about 8% after the rocket and space technology company reported its first profit as a public company. Adding to the upbeat tone, Elon Musk said a merger between SpaceX and Tesla TSLA.O would be "a good idea," helping lift Tesla shares more than 3%.
Super Micro SMCI.O gained about 10%, while Netflix NFLX.O dropped more than 5%.
A majority of S&P 500 .SPX sectors ended the day in positive territory. Technology .SPLRCT led the advance with a gain of roughly 1.6%, while communication services .SPLRCL was the day's weakest performer, falling more than 1%.
Under the surface, chip stocks stood out. The PHLX Semiconductor Index .SOX jumped 2%, suggesting investors remain eager to own AI-linked names despite recent volatility.
Not every corner of the market participated in the rally. Housing-related shares .HGX lagged as the US 10-year Treasury yield US10YT=RR held steady and fresh data pointed to continued weakness in mortgage demand. The HGX fell about 0.7%.
Elsewhere, the S&P 500 energy sector .SPNY notched a record intraday high, but pared gains into the close. However, Apple AAPL.O was able to post a record closing high.
Attention now turns to quarterly reports from Tesla and Meta Platforms META.O, due after Wednesday's closing bell.
Here is a snapshot of where markets stood shortly after 4 p.m. ET.
(Terence Gabriel)
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EARLIER ON LIVE MARKETS:
DATA CENTER BUILDOUT DELAYS MAY CREATE WINNERS AND LOSERS CLICK HERE
HAUNTED HOUSING: BORROWING COSTS EASE, BUT BORROWERS REMAIN SPOOKED CLICK HERE
AI TRADE GETS A FRESH BOOST FROM EARNINGS CLICK HERE
THE NASDAQ LOOKS FINE BUT ITS INTERNALS TELL A DIFFERENT STORY CLICK HERE
DON'T WRITE OFF FRENCH STOCKS CLICK HERE 
BRITISH BANK TAX COULD BE A BUY SIGNAL CLICK HERE
BCA'S 'BUY EUROPE' CALL COMES WITH FOUR WORDS: BANK ON THE BANKS CLICK HERE
MIXED START CLICK HERE
EUROPE BEFORE THE BELL: FUTURES SIGNAL STEADY OPEN CLICK HERE
TESLA MAY GET ROCKET BOOSTERS FOR REAL THIS TIME CLICK HERE
     

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(Terence Gabriel is a Reuters market analyst. The views expressed are his own)