SpaceX Earnings Spark Tech Rally as AI Concerns Ease - US Market Wrap
A blockbuster earnings report from SpaceX fueled a rally in technology stocks, easing concerns over whether the global AI investment boom can remain sustainable. Shares of the satellite, rocket and AI company surged 7.8%, also boosted by Elon Musk’s remarks supporting the prospect of a merger with Tesla. The electric-vehicle maker climbed in late trading after reporting better-than-expected results. Meta Platforms also jumped following a strong revenue forecast. Investor anxiety over the durability of the AI boom had intensified in recent weeks amid concerns that the substantial upfront capital spending required by the technology will take longer than expected to translate into profits and productivity gains.
A blockbuster earnings report from SpaceX fueled a rally in technology stocks, easing concerns over whether the global AI investment boom can remain sustainable. Shares of the satellite, rocket and AI company surged 7.8%, also boosted by Elon Musk’s remarks supporting the prospect of a merger with Tesla. The electric-vehicle maker climbed in late trading after reporting better-than-expected results. Meta Platforms also jumped following a strong revenue forecast.
Investor anxiety over the durability of the AI boom had intensified in recent weeks amid concerns that the substantial upfront capital spending required by the technology will take longer than expected to translate into profits and productivity gains.