[New York Stock Market] Nasdaq Rises on SpaceX-Tesla Merger Talks

Oil prices mixed
Technology and semiconductor stocks advance

All three major indexes on the New York Stock Exchange were rising on Wednesday, October 21 (local time). Buying in technology stocks picked up after SpaceX CEO Elon Musk said on Tuesday that SpaceX and Tesla were discussing a merger, with the Nasdaq posting the strongest gains.

As of 10:15 a.m. in New York, the Dow was trading at 52,615.19, up 119.31 points (0.23%) from the previous trading day. The S&P 500, which is weighted toward large-cap stocks, rose 21.84 points (0.28%) to 7,734.41, while the Nasdaq, which is weighted toward technology stocks, gained 187.75 points (0.73%) to 26,612.57.

The New York Stock Exchange. New York, U.S. - Correspondent Hwang Yunju

News of SpaceX's strong earnings and merger discussions with Tesla lifted investor sentiment toward technology stocks. However, Netflix's lowered annual revenue outlook capped the gains.

SpaceX said its third-quarter revenue increased 161% from a year earlier. Its shares, which jumped about 7% in after-hours trading, are currently up 12.1% from the previous trading day. The stock was also boosted by CEO Musk's announcement that the company had formed a special committee to discuss a merger between SpaceX and Tesla.

Chip stocks also advanced after reports that revenue from SpaceX's artificial intelligence (AI) business had increased ninefold. AMD rose 1.58%, Nvidia gained 1.33%, and Broadcom was up 0.36%.

Netflix shares were down 3.24% after the company said its annual revenue outlook was below market expectations and lowered its advertising revenue outlook.

Investors are watching Meta's earnings, due after the market closes on Wednesday. IBM and Southwest Airlines are also scheduled to report earnings.

Stocks have recently faced significant downward pressure amid concerns about the debt burden of AI-related companies and whether massive infrastructure investments will translate into actual demand. Christian Mueller-Glissmann, head of asset allocation research at Goldman Sachs Research, said short-term volatility could increase due to tensions in the Middle East, the midterm elections, and concerns about AI, but that earnings could support stock prices through the end of the year.

Meanwhile, international oil prices were mixed. West Texas Intermediate (WTI) crude for December delivery was trading at $97.54 a barrel on the New York Mercantile Exchange, down 0.20% from the previous session. Brent crude for December delivery was at $108.86 a barrel on the ICE Futures Exchange, up 0.09% from the previous session.

This content was produced with the assistance of AI translation services.