Wall Street rises as SpaceX gains on quarterly results

Wall Street’s main share indexes closed higher on Wednesday, with the Nasdaq leading gains as investors welcomed strong quarterly results from SpaceX’s artificial-intelligence business and set aside concerns about a possible escalation of tensions in Saudi Arabia.

The Dow Jones Industrial Average rose 0.7% to 52,856.09, the S&P 500 gained 0.6% to 7,757.17 and the Nasdaq Composite climbed 1.1% to 26,702.86.

SpaceX shares jumped 7.8% after the company reported higher revenue and a profit, which the Dutch news agency ANP attributed to its AI division. Tesla, also led by Elon Musk, rose 3.4% after Musk said he would like the two companies to merge.

Reports late in the session of a possible evacuation of US embassy staff in Saudi Arabia briefly unsettled markets. The US government clarified that it would bring home only non-essential personnel, and the concerns ebbed.

Netflix fell more than 5% despite reporting higher revenue. The streaming company said growth had slowed and expected it to ease further in the final quarter of the year. AI-server maker Super Micro Computer rose almost 10% after releasing its results.

Meta gained 0.5% ahead of its results, due after the closing bell. A New Mexico judge had ordered the company to pay $25bn over misleading consumers about privacy, according to ANP. Health company Abbott fell 1.9% after disappointing results and plans to separate its nutrition business, which includes baby food, into a standalone listed company.