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AI earnings boost stocks

Forecast-beating results from SpaceX and a higher sales forecast from Super Micro Computer helped drive a semiconductor-led recovery across much of Asia on Wednesday. Wall Street had finished Tuesday on a mixed note, with broader indices advancing despite weakness in technology stocks, while European equities slipped. Oil prices moved higher on Wednesday as threats to Middle East supplies and dwindling US crude inventories kept inflation risks in focus.

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

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Asian chipmakers rally on strong AI earnings

Asian equities rebounded on Wednesday as upbeat US technology earnings eased concerns about AI investment. South Korea’s KOSPI climbed 2.6%, led by chipmakers Samsung Electronics and SK Hynix. US-based server manufacturer Super Micro Computer projected quarterly revenue of USD 18.5–19.5 billion, up from its previous forecast of USD 14.5–15.5 billion, while SpaceX reported revenue growth of 161% year-on-year, reinforcing expectations for robust AI infrastructure demand. The recovery was uneven, however, with mainland China’s CSI 300 falling 0.9% and Hong Kong’s Hang Seng Index declining 0.6%, and Australian data-centre operator NextDC plunging around 40% after electricity-network delays prompted an outlook downgrade, while elevated oil prices sustained inflation concerns.

Oil rises as supply concerns intensify

Brent crude oil futures gained 1.6% to USD 110.49 a barrel, while West Texas Intermediate (WTI) futures rose 1.4% to USD 99.22 as Middle East tensions heightened supply concerns. Fading hopes for a US-Iran peace agreement, disrupted shipping through the Strait of Hormuz and attacks on Saudi oil infrastructure supported prices. American Petroleum Institute data showed US crude inventories fell by a larger-than-expected 4.93 million barrels last week, extending recent substantial drawdowns as Hurricane Isaias disrupted Gulf Coast production. Spot gold declined 0.2% to USD 4115.89 an ounce as inflation concerns reinforced expectations of further Federal Reserve rate increases, reducing the appeal of the non-interest-bearing metal. Meanwhile, the US Dollar Index edged up 0.1% to 101.79, while bitcoin gained 1.2% to around USD 82,700.

US stocks mixed as technology shares falter

US equities ended mixed on Tuesday, with the Nasdaq 100 falling 0.1% to 29,490.28 points, while the Dow Jones Industrial Average rose 1% to 52,495.88 points and the S&P 500 gained 0.3% to 7712.57 points. Technology shares remained under pressure ahead of earnings from SpaceX and Netflix, while a weak debut for South Korean AI infrastructure company Elice further dampened sentiment.

SpaceX earnings beat expectations

After US markets closed, US-based aerospace and AI company SpaceX reported third-quarter revenue of USD 14.58 billion and earnings per share of USD 0.35 on Tuesday, both exceeding analysts’ forecasts. Adjusted earnings before interest, taxes, depreciation and amortisation reached USD 8.81 billion, while capital expenditure of USD 19.59 billion, including USD 16.44 billion for AI, was below expectations. Shares surged 9% during after-hours trading as chief executive Elon Musk also confirmed that independent board committees at SpaceX and Tesla were considering a potential merger, while stressing that an agreement was not assured.

German economic sentiment weakens

Germany’s ZEW economic sentiment index fell to 28.1 points in October from 34.7 in September, according to survey results released on Tuesday, reversing the improvement seen over the summer. The assessment of current conditions nevertheless rose by 11.2 points to minus 35.9, suggesting the economy is gradually moving out of stagnation. ZEW warned that the recovery remains fragile, with elevated energy costs weighing on household purchasing power and business investment while prolonging inflationary pressures. Economic expectations for the euro area also weakened, with the corresponding index declining by 7.3 points to 18.5. European equities closed lower on Tuesday, with the Euro Stoxx 50 down 0.3%, Germany’s DAX down 0.1% and France’s CAC 40 down 0.4%.

Swiss trade extends recovery

Swiss exports rose by a seasonally adjusted 2.6% quarter-on-quarter to CHF 75 billion in the third quarter, compared with CHF 70.9 billion a year earlier, according to official data released on Tuesday; export volumes increased by 3.3%. Imports climbed by 1.8% to a record CHF 61 billion, versus CHF 57 billion in the third quarter of 2025, although volumes fell by 1.4%, while the trade surplus widened to CHF 14 billion from CHF 13.2 billion in the preceding quarter. Both trade flows increased for a second consecutive quarter, with stronger chemical exports offsetting a decline in pharmaceuticals and watch and vehicle exports reaching record levels. The Swiss Market Index gained 0.8% to 14,478.37 points in the latest session.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Abbott, IBM, Lam Research, Meta Platforms, Philip Morris, SAP, Tesla, Texas Instruments, and Thermo Fisher Scientific.

Economic data in focus: Japanese trade balance (01:50), UK Consumer Price Index (08:00), Bundesbank monthly report (12:00), European Central Bank President Christine Lagarde speaks (18:00).

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Editor: Alessandro Fezzi
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