SpaceX share rises 9% after profit boom, now Wall Street is waiting for Meta
The futures on Wall Street turn green after strong quarterly figures at, among others, SpaceX. Today focus on Meta, but also oil important.
The US stock market is likely to open higher on Wednesday after another series of strong quarterly figures came in. S&P 500 futures are up about 0.3 percent, while Nasdaq 100 futures are up 0.7 percent. The biggest outlier is SpaceX.
The share rises about 9 percent after the company reported that revenue grew by 161 percent in the third quarter.
Elon Musk also announced that SpaceX and Tesla have created special committees to discuss a possible merger. Tesla shares are responding with an increase of about 1 percent.
Such a combination would bring together two of Musk's largest companies and likely make investors rethink the valuation of both companies. For the time being, however, the process is still in an early stage.
Quarterly figures continue to offer support outside of technology, with 3M up more than 5 percent on Tuesday after the group raised its earnings forecast for the whole of 2026.
As a result, the Dow Jones gained almost 530 points, while the S&P 500 rose about 0.3 percent. The Nasdaq, on the other hand, ended almost flat.
Goldman Sachs believes that strong corporate earnings could support the stock market towards the end of the year. Lower valuations and relatively cautiously positioned investors can create room for recovery, according to the bank.
Still, concerns about AI investments linger above the market. Investors are increasingly asking themselves whether the enormous expenditure on chips and data centers is yielding sufficient returns.
That's why Meta's figures will become extra important on Wednesday evening. Meta is investing heavily in AI and launched a new paid model earlier this month.
The market mainly wants to know whether these investments lead to sufficient additional turnover and cash flows. Tesla and IBM also publish results on Wednesday.
Oil prices fell slightly on Tuesday. WTI lost about 1.8 percent and Brent 0.7 percent. However, since those sharp declines, we have seen them revive somewhat. This gives investors a bit more breathing room for the time being after weeks of concerns about inflation and geopolitical risks.
For Wall Street, Wednesday is therefore mainly about two questions. Will earnings growth remain strong enough and can Meta and other tech giants prove that their massive AI spending is actually yielding returns?