U.S. stocks opened higher on Wednesday as traders digested a new round of financial reports.
The S&P 500 index rose by 0.3%, the Nasdaq Composite Index increased by 0.7%, and the Dow Jones Industrial Average climbed 90 points, with a gain of 0.2%.
Elon Musk's subsidiary SpaceX saw a 8% surge in its stock price, with the company announcing a 161% increase in third-quarter revenue. Musk also stated that SpaceX and its automotive company Tesla have established a special committee to discuss merger-related matters. Tesla will release its financial report later, and its stock price has increased by more than 3%.
But Netflix, the leader in streaming media, tumbled by more than 5%. The company's annual revenue forecast fell short of analysts' expectations, and it also lowered its guidance for annual advertising revenue.
U.S. stocks showed mixed trends on Tuesday. Driven by positive earnings from 3M, the Dow Jones Industrial Average rose nearly 530 points, or 1%; the industrial company raised its full-year profit forecast, and its stock price soared by more than 5%. The S&P 500 index rose 0.3%, while the Nasdaq Composite Index closed slightly lower.
Investors continued to search for clues regarding the trend of AI on Wednesday, while Meta Platforms will release its financial report after the market closes. Earlier this month, Meta launched the latest AI model Muse Wonder, which is only available to paid users.
Recently, there are concerns in the market about the sustainability of the performance of AI. Traders are focusing on AI investments that involve borrowing, as well as whether the demand for infrastructure can match the large capital expenditures of enterprises. Storage manufacturers Seagate Technology rose by 2% during regular trading hours on Tuesday, and cloud manufacturers CoreWeave rose by more than 1%.
Goldman Sachs' head of asset allocation, Christian Mueller - Glissmann, stated that this round of financial reporting season is expected to boost the stock market as we approach the end of the year.
In his research report, he wrote: "In the short term, concerns related to AI, the situation in the Middle East, and mid-term elections may lead to greater volatility. However, we believe that against the backdrop of a relatively light position, declining valuations, and earnings support, equity assets are expected to perform well by the end of the year."
Traders are also paying attention to the financial report of IBM and Southwest Airlines, which is scheduled to be released on Wednesday.












