U.S. stock futures rose Wednesday as traders analyzed new earnings reports, with S&P 500 futures up 0.29% and Nasdaq-100 futures up 0.7%. SpaceX shares surged 8% after reporting a 161% jump in third-quarter revenue, and Elon Musk hinted at potential merger discussions between SpaceX and Tesla.
In Europe, markets were mixed, while Asian stocks showed some recovery. Major indices saw varied movements, with notable gains in South Korea’s Kospi and Japan’s Nikkei 225. Investors are closely watching upcoming earnings from Meta Platforms, Tesla, IBM, and Southwest Airlines.
U.S. stock futures showed early gains on Wednesday as traders parsed a fresh batch of corporate earnings reports. The S&P 500 futures climbed 0.29%, the Nasdaq-100 futures rose by 0.7%, and Dow futures remained flat.
In Asian markets, South Korea's Kospi advanced 2.7%, recovering from previous day's decline. Japan's Nikkei 225 was up 0.8%, while the Hang Seng index dipped 0.35% and mainland China saw little change. Australia's S&P/ASX 200 traded near its previous close.
Shares of Elon Musk's SpaceX experienced a significant surge of 8% after the company announced a 161% revenue growth in the third quarter. Additionally, Musk revealed that SpaceX and Tesla have formed special committees to explore a potential merger, with Tesla shares ticking up 1%.
In regular trading, the Dow Industrials saw a substantial increase of nearly 530 points, or 1%, driven by a post-earnings rally in 3M, which jumped over 5% after raising its full-year profit guidance. The S&P 500 gained 0.3%, while the Nasdaq Composite closed slightly lower.
Oil prices ended the session marginally lower, with West Texas Intermediate crude futures down 1.8% and Brent crude futures off by 0.7%.
Christian Mueller-Glissmann, head of asset allocation for Goldman Sachs Research, suggested that the current earnings season could provide a boost to stocks as the year concludes. Despite near-term volatility risks from AI concerns, geopolitical tensions, and midterm elections, he anticipates that supportive earnings, lighter market positioning, and lower valuations will aid equities through year-end.
Concerns surrounding the sustainability of the AI trade have impacted market sentiment, with a focus on AI debt investments and the justification for companies' infrastructure spending. Seagate Technology added 2% on Tuesday, and CoreWeave saw a more than 1% increase.
Investors are awaiting Meta Platforms' earnings report after the bell on Wednesday, following its recent launch of the AI model Muse Wonder. Other notable earnings reports expected today include those from Tesla, IBM, and Southwest Airlines.
European markets in mixed territory
The pan-European Stoxx 600 was flat shortly after 8:15 a.m. in London (3:15 a.m. E.T.), with a mixed performance across continental markets. Oil and gas stocks led gains, rising 1.11%, while technology stocks were up 0.58%. Automakers and parts suppliers, however, saw a decline of 1.6%.
Major indices showed mixed results: the French CAC 40 added 0.16%, Italy's FTSE MIB was flat, Germany's DAX dropped 0.11%, and the U.K.'s FTSE 100 fell 0.16%.
— Hugh Leask
Carrefour shares plunge 10% amid French unrest
Carrefour shares plummeted 10.6% after the French grocery retailer revised its profit forecasts downward and reduced capital expenditure plans. This revision was attributed to ongoing national unrest in France and a significant impact from energy price shocks on consumer sentiment.
The company, France's largest supermarket chain, also lowered its full-year adjusted earnings per share forecast from "high single-digit growth" to "stable to slight growth." CEO Alexandre Bompard described the situation in France as "unprecedented."
—Hugh Leask
UK government approves Jackdaw North Sea gas field
The U.K. government has granted approval for new drilling operations in the Jackdaw gas field located in the North Sea. The field, operated by Adura (a joint venture between Shell and Equinor), is situated approximately 150 miles east of Aberdeen, Scotland. Adura estimates that the Jackdaw field has the potential to supply 6% of Britain's total gas consumption and could be connected to the U.K. grid within months, thereby enhancing the nation's energy security during a period of vulnerability to external price fluctuations.
—Hugh Leask
UK annual inflation rises to highest level in a year
The U.K.'s annual inflation rate rose to 3.5% in the 12 months leading up to September, marking its highest point in a year, according to the Office for National Statistics. This increase was primarily driven by a surge in the cost of motor fuels. The figure exceeded economists' forecasts of 3.4% and signifies a continuing upward trend in U.K. inflation, following rates of 3.1% in August and 2.9% in July.
— Chloe Taylor
Adidas shares rise in premarket after third-quarter operating profits soar 37%
Adidas shares climbed 3.3% in premarket trading following the German sportswear giant's announcement of a preliminary 37% surge in third-quarter operating profit, reaching 1.01 billion euros ($1.13 billion). Revenue also increased by 9% to 7.25 billion euros. Consequently, the company revised its full-year operating profit forecast upward to 2.5 billion euros, from the previous estimate of 2.3 billion euros.
— Hugh Leask
— Hugh Leask
Europe's stock markets expected to open higher
European stock markets were anticipated to open higher on Wednesday, with Stoxx 50 futures indicating a 0.42% increase. Futures pointed to a 0.45% rise for Germany's DAX, a 0.32% gain for Italy's FTSE MIB, and a 0.22% increase for the French CAC 40. U.K. FTSE 100 futures were up nearly 0.21%.
—Hugh Leask
Australian data center operator NextDC’s shares plunge 40% after it slashes earnings forecast
Shares of Australian data center operator NextDC experienced a sharp decline of 39.5% on Wednesday. This significant drop followed the company's announcement of a slashed annual earnings forecast, primarily due to delays in power supply for its Melbourne facility, which faced local community and stakeholder opposition. NextDC has revised its fiscal 2027 revenue guidance to between A$475 million and A$500 million, down from A$615 million to A$640 million. Its underlying EBITDA forecast has also been reduced to A$245 million - A$265 million, from A$385 million - A$410 million.
—Jenny Lee
CATL shares fall over 9% following third-quarter results
Shares of Chinese battery giant CATL declined by over 9% in Hong Kong and China on Wednesday, subsequent to the release of its third-quarter financial results on Tuesday. The company reported a 14.5% year-on-year increase in net profit attributable to shareholders, reaching 21.25 billion yuan ($3.18 billion), with revenue soaring 58.6% to 165.22 billion yuan. Citi maintained its 'Buy' rating on CATL but lowered its earnings forecasts for 2026-2028 by 9%, 14%, and 15% respectively, and reduced its price target for the Shenzhen-listed shares to 479 yuan from 500 yuan. The bank cited weaker gross margins, higher expenses, and impairment losses as reasons for CATL's third-quarter net profit missing expectations.
—Jenny Lee
South Korea's stock exchange temporarily halts program trading
South Korea's stock exchange enacted a brief halt on program trading after Kospi 200 futures surged by 5%, activating a "sidecar" mechanism designed to mitigate excessive market volatility. This five-minute trading pause occurred as South Korean equities experienced a significant rebound, with technology and semiconductor stocks recovering from a sharp sell-off earlier in the week, as investors reassessed prospects within the artificial intelligence sector. The benchmark Kospi Index was up 4.4%.
—Lee Ying Shan
Japan exports post huge miss in September as growth slows to 16.7%
Japan's exports in September saw a year-on-year increase of 16.7%, falling significantly short of market expectations of 20.1%. This marks the second consecutive month of slowing export growth after reaching a near four-year high in July. The growth was propelled by strong semiconductor exports, which rose 49.4% year-on-year, and machinery exports, including semiconductor-related machinery (up 43.9%) and power generation machinery (up 22.6%). Shipments to mainland China increased by 8.6%, while exports to the U.S. climbed 22.9%.
—Lim Hui Jie
Asia tech stocks rebound as AI optimism returns; Elice surges nearly 30% after bruising debut
Asian technology stocks experienced a broad rebound on Wednesday, fueled by renewed optimism in artificial intelligence infrastructure investments, partly spurred by positive sentiment surrounding SpaceX's latest quarterly results. South Korean memory chip giants SK Hynix and Samsung Electronics surged 6.38% and 5.03%, respectively. Elice, a South Korean AI infrastructure provider, soared 29.92%, recovering from a significant drop on its debut Tuesday. This rebound occurred despite concerns about whether heavy AI infrastructure spending would yield sustainable profits. Japanese semiconductor stocks also rallied, with Advantest and Tokyo Electron gaining 5.31% and 3.02%, respectively. Technology investment firm SoftBank Group rose 4.70%.
Dan Ives, Tech Analyst at Yorkville Ives, commented, "The SpaceX quarter and what this indicates for the neoclouds is very bullish globally and the Korean stocks have sold off way too much in my view."
—Lee Ying Shan
Japan's Nikkei 225 rises over 1%, South Korean stocks gain 2%
Asia-Pacific markets opened on an upward trajectory Wednesday, with South Korean stocks leading the gains. The Kospi index advanced 1.8%, recovering from Tuesday's losses, while the tech-focused Kosdaq Index jumped over 2%. Japan's Nikkei 225 was up 1.4%, and the Topix added 0.93%. Australia's S&P/ASX 200 traded flat.
— Lee Ying Shan
Asia-Pacific markets set to rebound after Wall Street gains on strong earnings, easing oil prices
Asia-Pacific markets were poised for a higher open on Wednesday, following gains on Wall Street overnight, which were supported by strong corporate earnings reports and a decline in oil prices. Nikkei 225 futures in Chicago were at 65,355, while Osaka futures were flat at 65,210, compared to the previous closing index value of 64,075.42. Hong Kong's Hang Seng index futures traded at 24,001, exceeding its last close of 23,867.74. Australia's S&P/ASX 200 was up 0.27%.
— Lee Ying Shan
Stocks making the biggest moves after hours: SpaceX, Netflix & more
Intuitive Surgical saw its stock fall about 7% after its third-quarter results failed to meet investor expectations, with earnings of $3 per share (excluding certain items) on revenue of $3.05 billion. Conversely, SpaceX shares climbed nearly 7% following a reported 161% surge in third-quarter revenue to $14.58 billion. Elon Musk also indicated that SpaceX and Tesla are forming special committees to discuss a potential merger, with Tesla shares rising 1%. Netflix shares dropped more than 5% despite reporting third-quarter revenue of $12.87 billion, up 12% year-over-year, driven by membership growth and a price increase implemented in March.
Read more about Tuesday's after-hours movers here.
—Darla Mercado
U.S. stock futures open higher Tuesday night
U.S. stock futures indicated a higher open Tuesday night, as traders evaluated the latest corporate earnings reports. Futures tied to the Dow Jones Industrial Average rose 0.19%, S&P 500 futures gained 0.47%, and Nasdaq-100 futures added nearly 1%.
— Deena Zaidi
