SpaceX results lift US equity indexes as tech leads rally

US equity indexes rose after midday Wednesday, driven by a sharp rally in Space Exploration Technologies and Super Micro Computer that boosted risk sentiment across the technology sector. The Nasdaq Composite advanced 1.2% to 26,739.1, while the S&P 500 climbed 0.6% to 7,757.9. The Dow Jones Industrial Average edged up 0.4% to 52,681.9.

Space Exploration Technologies led the Nasdaq gainers, with shares surging 9.8%. The company reported late Tuesday that it swung into profitability in the third quarter, a result driven by strong revenue growth in its artificial intelligence and connectivity divisions. Data compiled by Finviz indicates that seven of the top ten stocks with market capitalizations exceeding $200 billion are from the technology sector, with SpaceX topping that list of mega-caps.

Elon Musk, who heads both SpaceX and Tesla, stated that the two companies have formed special committees to evaluate a potential merger. Meanwhile, Super Micro Computer shares jumped 9% following the release of preliminary first-quarter fiscal results late Tuesday. The company reported revenue and margin figures that exceeded expectations.

In energy markets, US commercial crude oil stocks, excluding Strategic Petroleum Reserve inventories, fell by 3.1 million barrels in the week ended October 16. This decline followed an 8.6 million barrel drop in the previous week and contrasted with the 340,000-barrel decrease projected in a Bloomberg-compiled survey. The front-month West Texas Intermediate crude oil contract slipped 0.6% to $97.22 per barrel, while global benchmark Brent crude gained 0.1% to reach $108.89 per barrel.