Japan's Nikkei and South Korea's Kospi jumped Wednesday as investors bought back into AI-linked technology stocks, even as SpaceX and AMD shares fell after their latest earnings. Oil prices extended a slide on hopes for a Strait of Hormuz shipping deal, pulling bond yields lower and denting the odds of a September Fed rate hike.
Japan's Nikkei jumped 3.6% on Wednesday, while South Korea's Kospi surged 4.1%. The advance came even as SpaceX and AMD shares fell in after-hours trading following their latest earnings.
AI capex jitters resurface for SpaceX and AMD
AMD's shares dropped 8.8% after hours, as earnings beat Wall Street estimates but still fell short of investors' sky-high expectations. SpaceX shares fell 7.5%, undoing much of a rally from regular trading, on worries that capital spending is eating into its cash flow.
Yet SpaceX's revenue surged 92% to $7.8bn in its debut quarter as a public company, comfortably ahead of expectations, while adjusted EBITDA of $3.5bn came in roughly 70% above forecasts, said Sam North, market analyst at eToro. The company still lost $541m for the quarter, Sam North noted. Separately, as many as 912 million shares held by employees and other pre-IPO stakeholders become eligible for sale on Thursday, a fresh test for the stock.
Oil slide extends on Hormuz optimism
Brent crude fell 0.5% to $78.95 a barrel, extending Tuesday's drop below $80, as Qatar said a draft proposal had been circulated to reopen shipping through the Strait of Hormuz. U.S. Treasury Secretary Scott Bessent suggested an agreement could be reached as early as Wednesday or Thursday.
Separately, Brent is a long way from its July top of $102, while U.S. crude fell 0.9% to $75.09 a barrel. The retreat in oil pulled 10-year Treasury yields down to 4.603%, from last week's high of 4.747%, and cut the market-implied odds of a September Federal Reserve rate hike to 57% from 67%. Gold rose 1.6% to $4,140 an ounce as yields fell.
Wall Street futures point to fresh records
Wall Street's major indices closed at record highs on Tuesday, lifted by strong profits from Caterpillar and Palantir Technologies. Building on that close, S&P 500 futures added 0.3% on Wednesday, while Nasdaq futures held flat after the earnings news.
Sources: Business | The Guardian, Economy News
Trading involves risk.
Risk Disclaimer
