Stock futures rise as traders evaluate latest raft of earnings; SpaceX shares surge: Live updates

U.S. stock futures experienced an uptick on Tuesday evening as investors assessed the latest earnings reports. Futures linked to the Dow Jones Industrial Average increased by 21 points, which is less than 0.1%. The S&P 500 futures rose by 0.3%, while futures for the Nasdaq-100 saw a gain of 0.8%.

In Asia, South Korea's Kospi index climbed by 4.3%, recovering from previous losses. Japan's Nikkei 225 improved by 1.6%, and the Hang Seng index in Hong Kong was up by 0.9%. In contrast, the mainland Chinese markets opened flat, and Australia's S&P/ASX 200 saw a slight decline of 0.1%.

Shares of SpaceX, the aerospace firm led by Elon Musk, surged by 8% following the announcement of a remarkable 161% increase in revenue for the third quarter. Musk also revealed that SpaceX and Tesla, his electric vehicle company, have established special committees to explore the possibility of a merger. Following this news, Tesla's stock rose by 1%.

During regular trading hours, the Dow Jones Industrial Average gained nearly 530 points, translating to a 1% increase, largely driven by a strong post-earnings performance from 3M. The industrial products company’s shares jumped over 5% after it raised its full-year profit guidance. The S&P 500 saw a modest increase of 0.3%, whereas the Nasdaq Composite closed the day slightly lower.

In the energy sector, oil prices ended the day on a downward trend. West Texas Intermediate crude futures fell by 1.8%, while Brent crude futures decreased by 0.7%.

This earnings season is anticipated to provide a boost to stocks as the year progresses, according to Christian Mueller-Glissmann, who heads asset allocation for Goldman Sachs Research. He noted in a recent report, "In the near term, we might see increased volatility due to concerns regarding artificial intelligence, tensions in the Middle East, and the upcoming midterm elections. However, we believe that earnings support, combined with lighter positioning and lower valuations, should positively influence equities as we approach year-end."

Market sentiment has been affected by worries about the longevity of the AI investment trend, with traders scrutinizing debt-laden AI investments and questioning whether the demand for infrastructure justifies the level of spending by companies. In regular trading on Tuesday, Seagate Technology, which specializes in data storage, saw its shares rise by 2%, while CoreWeave, a company focused on neocloud technology, increased by more than 1%.

Looking ahead to Wednesday, investors are anticipating more information regarding the AI sector, particularly as Meta Platforms is set to report its earnings after market close. Earlier this month, Meta introduced its latest AI model, Muse Wonder, which is currently available exclusively to paying users.

Additionally, traders are keeping an eye on upcoming earnings reports from Tesla, IBM, and Southwest Airlines, all of which are scheduled to be released on Wednesday.