Strong earnings boost AI stocks, US stock futures rise, SpaceX up 9% pre-market, Super Micro Computer up about 15%, oil prices rise again

SpaceX's strong quarterly report has reignited market confidence in the outlook for artificial intelligence investment, with US equity futures rising and technology stocks leading the gains.

S&P 500 futures rose 0.2%, while Nasdaq 100 futures gained 0.7%. SpaceX surged about 9%, with AI business revenue soaring 830% year-on-year and becoming the largest revenue source for the first time. Net profit exceeded expectations by 2.3 times, boosting market sentiment. Meanwhile, Super Micro Computer released eye-catching preliminary results, causing its share price to jump about 15% in pre-market trading, further strengthening the narrative of robust AI demand.

However, the positive sentiment was somewhat restrained. Oil prices climbed again, with Brent crude approaching $110 per barrel as ships near the Strait of Hormuz faced attack threats to supply, and US crude inventories fell by 4.9 million barrels according to inventory data. US Treasury yields and the dollar saw little change. Netflix fell about 6% in pre-market trading, dragged down by fourth-quarter revenue guidance and advertising income, both of which missed expectations, becoming the main drag of the day.

Stephan Kemper of BNP Paribas Wealth Management Germany stated: "Investor sentiment is naturally polarized. The strong data and positive guidance shown by SpaceX and Super Micro Computer are exactly the remedy the market currently needs."

• S&P 500 futures up 0.2%, Nasdaq 100 futures up 0.7%. SpaceX up about 9%, Super Micro Computer up about 15%, Netflix down about 6%
• Euro down 0.1%, at $1.1224
• US 10-year Treasury yield little changed at 5.11%
• German 10-year yield little changed at 3.40%
• Brent crude up 0.9% to $109.72 per barrel
• Spot gold down 0.1% at $4,120.68 per ounce

SpaceX posted Q3 revenue of $14.58 billion, up 161% year-on-year. AI business revenue soared by 830% year-on-year, surpassing other segments for the first time to become the company's largest single revenue source. Net profit exceeded market expectations by 2.3 times.

According to Bloomberg, Simon Wiersma, Chief Investment Strategist at ING, stated: "SpaceX has provided the answer the market is looking for—demand related to AI remains real. This not only boosts confidence in SpaceX itself but also improves sentiment towards the entire AI ecosystem."

In addition, Elon Musk expressed support for a potential merger between SpaceX and Tesla, further driving SpaceX's share price higher.

The stellar performance of SpaceX's earnings, coupled with reports that Anthropic PBC is planning to invest up to $750 billion in compute infrastructure over the next few years, has jointly alleviated recent market concerns stemming from high valuations and funding pressures.

Stephan Kemper of BNP Paribas Wealth Management Germany stated: "Investor sentiment is naturally polarized. The strong data and positive guidance shown by SpaceX and Super Micro Computer are exactly the remedy the market currently needs."

This week, the technology sector earnings season continues, with Meta Platforms and Tesla set to report after the close on Wednesday. The market is closely watching whether AI investment can continue to deliver returns.

Super Micro Computer released preliminary results for the first fiscal quarter, with revenue surpassing analyst expectations by 27%. Its share price jumped about 15% in pre-market trading, once again confirming the strong demand for AI compute infrastructure.

In contrast to the strength of the technology hardware sector, Netflix fell about 6% in pre-market trading. The company's guidance for fourth-quarter revenue and advertising income both missed market expectations, weighing on sentiment in the streaming media sector.

In European markets, the Stoxx 600 Index edged higher, with gains in energy and technology offset by declines in consumer-related sectors. The Stoxx 50 Index opened up 0.3%, France's CAC 40 gained 0.1%, Germany's DAX was broadly flat, and the UK's FTSE 100 slipped 0.1%. The yield spread between France's 10-year government bonds and Germany's expanded to over 155 basis points.

In Asian markets, regional benchmark indices generally rebounded, with the Korea Composite Stock Price Index (Kospi) outperforming. South Korea’s Elice Inc., after recording one of the worst IPO debuts in the country’s history, saw its share price rebound 30% in a single day.