Major stock indexes climbed on Wednesday, lifted by more strong results from AI-focused companies, while France's 10-year bond yield hit 5% for the first time since 2002 due to growing concern about the country's economic outlook.
The Nasdaq gained more than 1%, with Super Micro shares rising 9.5% after the AI server maker forecast quarterly revenue and profit margin above Wall Street estimates.
Shares of SpaceX shot up 7.8% after Elon Musk said late on Tuesday that a merger of his two companies SpaceX and Tesla would be "a good idea." SpaceX also posted its first profit as a public company.
AI-related shares sold off ahead of third-quarter results on investor worries about how long the AI trade can last.
"A lot of the concerns that we had over the last few weeks that sent the market lower are being alleviated," said Adam Sarhan, chief executive of 50 Park Investments in New York. Earnings "are coming in mixed to stronger than expected," which he called a relief.