Traders work on the floor of the New York Stock Exchange, Aug. 7, 2026.
Jeenah Moon | Reuters
Stocks rose on Wednesday as the latest developments surrounding SpaceX and Tesla led investors to move back into technology.
The Nasdaq Composite added 1.05% to end at 26,702.86, and the S&P 500 rose 0.58% to 7,757.17. The Dow Jones Industrial Average climbed 360.21 points, or 0.69%, to close at 52,856.09.
Shares of Elon Musk’s SpaceX surged 7% after the company said its revenue grew 161% in the third quarter. Musk also said that SpaceX and Tesla, his auto manufacturer, have formed special committees to discuss a merger. Tesla, which is due to report earnings later, saw shares rise more than 3%.
SpaceX’s artificial intelligence business grew ninefold, reigniting enthusiasm for stocks related to the trade. Shares of Advanced Micro Devices advanced more than 3%, while Nvidia‘s stock rose more than 2%. Shares of Micron Technology and Marvell Technology grew nearly 2%. The VanEck Semiconductor ETF (SMH) was up close to 2% as well.
“SpaceX suggests there is still a longer runway here, but that fundamental tension or experience of getting overly enthusiastic and overly capitalizing things I don’t think has changed,” said Joe Zidle, Cresset’s chief market strategist.
Concerns around the AI trade’s sustainability have weighed on market sentiment lately, as traders focused on debt-backed AI investments and whether the infrastructure demand justifies companies’ spending. But Zidle anticipates that the current reporting period will show that a number of AI-related companies are continuing to see stronger demand.
“I think when we get to the end of earnings season and we look back, SpaceX is not an anomaly; it’s not a phenomenon; it’s actually something that’s going to be, I think, more common to the sector,” he said.
Investors are seeking more insights into the AI trade on Wednesday, with Meta Platforms also set to report after the bell. Earlier this month, the company rolled out its latest AI model, Muse Wonder, which is only available to paying users.
Traders are also watching for results from IBM and Southwest Airlines, both of which are due after the close.
Netflix was a key laggard during Wednesday’s session. Shares tumbled more than 5% after the streaming mainstay’s full-year revenue forecast came in below analysts’ expectations. The company also cut its ad revenue guidance for the full year.
