SpaceX AI Deal Shifts Chip Stocks as Wall Street Trades Near Records

Wall Street equity markets traded mixed near record highs on Wednesday as Elon Musk’s SpaceX rattled technology shares in its first quarterly earnings report as a public company, disclosing an exclusive artificial intelligence hardware deal with Nvidia Corp. that reshuffled semiconductor stocks.

The Dow Jones Industrial Average rose 473 points, or 0.9%, while the S&P 500 edged up 0.1% following record high closes for both benchmarks on Tuesday. The tech-heavy Nasdaq composite fell 0.4%, remaining 2% below its all-time record set earlier this summer.

SpaceX shares tumbled 11.9% after its late-Tuesday financial report showed a steep increase in spending on artificial intelligence. The commercial space company disclosed it will exclusively deploy Nvidia chips for its AI infrastructure, driving Nvidia shares up 4.4% and helping offset broader market losses.

The exclusive agreement hit rival semiconductor manufacturer Advanced Micro Devices, which fell 6.2%. Musk had previously indicated that SpaceX and Tesla would split their chip procurement between Advanced Micro Devices and Nvidia. Micron Technology also gained 2.7% as chipmakers saw heavy trading volume.

“The market appears to be moving from rewarding companies for AI spending to assessing the revenue and earnings that these investments can generate,” said Brian Therien, analyst, investment strategy, at Edward Jones, in a report.

Strong corporate results across other sectors supported the broader market. S&P 500 companies are closing out an earnings season where three-quarters of index members have reported, with consensus estimates projecting aggregate profit growth of 50% for the quarter.

“The coiled spring investors have been waiting for has finally released, with the S&P 500 Index surging to record highs for the first time in two months,” said Mark Hackett, chief market strategist at Nationwide, in a report.

The Walt Disney Co. advanced 3.7% after beating profit forecasts, driven by strong theme park performance and a $1 billion global box office performance for “Toy Story 5.” Booking Holdings jumped 6.5% after quarterly revenue and net income topped estimates on sustained international travel demand.

Fixed-income markets remained calm, with the yield on the 10-year Treasury benchmark slipping to 4.62% from 4.63% late Tuesday. The Federal Reserve continues to hold its benchmark interest rate steady, though traders expect at least one rate increase before the end of 2026 as consumer spending remains resilient despite elevated borrowing costs.

Energy markets hovered near recent levels as Brent crude, the international benchmark, fell 0.2% to $79.26 a barrel. Oil prices had previously spiked to $102 a barrel during the five-month conflict involving the U.S. and Iran, which disrupted global energy shipments through the Middle East. President Donald Trump said a resolution allowing the reopening of the Strait of Hormuz could be reached as early as Wednesday.

International equities tracked gains in technology stocks overnight, with benchmark indexes in Tokyo and Seoul rising more than 3% driven by chipmakers, while European markets closed mixed.