Nasdaq Leads Wall Street Higher as SpaceX Soars Ahead of Meta, Tesla Earnings

U.S. stock markets experienced gains during Wednesday's morning session as investors analyzed the performance of SpaceX and prepared for upcoming earnings reports from Meta Platforms and Tesla, both set to be released after market close.

The Nasdaq Composite index increased by 0.6%, while the S&P 500 saw a rise of 0.3%. The Dow Jones Industrial Average also climbed, albeit slightly, by 0.1%. SpaceX's stock surged by 10% following the company's announcement of revenue and earnings that exceeded Wall Street expectations, largely driven by growth in its artificial intelligence sector.

While investors reacted positively to SpaceX's results, they were also mindful of the potential financing risks associated with the rapid expansion of AI technologies. Charlie Bilello, the chief market strategist at Creative Planning, pointed out that bond issuance related to AI had reached $419 billion by 2026, a staggering 90% increase compared to the total for the entire year of 2025. He cautioned that while stock market booms can be enticing, they may lead to increased credit risks.

In the bond market, Treasury yields saw a decline. The yield on the 10-year Treasury note dropped by three basis points to settle at 5.09%. The two-year Treasury yield also decreased by two basis points to 4.77%, while the 30-year yield fell by three basis points to 5.40%.

In the commodities market, oil prices experienced a slight decline, with U.S. crude trading at $97.06 per barrel and Brent crude at $108.21 per barrel. Additionally, the Mortgage Bankers Association reported a 5.3% drop in its Composite Index for the previous week, despite a decrease in mortgage rates for the first time in two months.