Live Markets: AI trade gets a fresh boost from earnings

Meta Platforms

Yesterday 15:14

Nasdaq gains ~0.4%, S&P 500 ~flat, Dow slips
Tech and industrials lead S&P 500 sector gainers; communication services weakest group
Euro STOXX 600 index up ~0.9%
Dollar, gold, US crude ~flat; bitcoin gains >1%
US 10-year Treasury yield edges down ~5.11%
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AI TRADE GETS A FRESH BOOST FROM EARNINGS
Wall Street's main indexes are mixed early Wednesday after earnings from SpaceX and Super Micro Computer reignited enthusiasm for the AI trade, though Netflix is weighing on sentiment after its outlook failed to impress investors.
SpaceX SPCX.O is climbing around 12% after Elon Musk said Tuesday that a merger between the company and Tesla would be "a good idea." The rocket and space technology firm also reported its first profit as a public company. Tesla shares TSLA.O are up more than 3%.
     Super Micro SMCI.O is adding to the upbeat tone, surging more than 12% after its results, while Netflix NFLX.O is down 3% after its forecast disappointed investors.
Investors are also looking ahead to earnings from Tesla and Meta Platforms META.O, both due after Wednesday's closing bell.
At the sector level, breadth is negative, with a majority of S&P 500 .SPX sectors trading lower. Communication services .SPLRCL is the weakest group, down more than 1%. Industrials .SPLRCI and tech .SPLRCT are the leading gainers. 
Under the surface, chip stocks are providing much of the market's leadership. The Philadelphia Semiconductor Index .SOX is up about 1%, underscoring renewed appetite for AI-linked names.
Meanwhile, the rally in space-related stocks is gaining momentum. The Tema Space Innovators ETF NASA.K is up more than 6% on the day. Even so, the fund remains nearly 50% below its May 27 record closing high, a reminder of how steep the earlier selloff was.
Here is a snapshot of where markets stood around 10:05 a.m. ET.
(Terence Gabriel)
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EARLIER ON LIVE MARKETS:
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
     

EarlyTrade10212026 https://fingfx.thomsonreuters.com/gfx/buzz/zjvqlmeybpx/EarlyTrade10212026.png
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)