US stocks extend rally despite SpaceX weakness

NEW YORK: Wall Street stocks opened higher early Wednesday, extending gains on mostly strong corporate earnings amid hopes for a US-Iran deal to reopen the Strait of Hormuz.

While SpaceX fell sharply after results on worries about huge artificial intelligence spending, “earnings season is still a positive,” said Cresset Capital’s Jack Ablin, who also pointed to upbeat comments from Trump administration officials about a Hormuz deal.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.9 percent at 54,586.35.

The broad-based S&P 500 gained 0.7 percent to 7,788.02, while the tech-rich Nasdaq Composite Index climbed 0.5 percent to 26,717.42.

Private sector hiring in July came in at 44,000, according to payroll firm ADP, lower than the 75,000 that analysts had anticipated.

The figures are closely monitored ahead of official employment numbers due Friday, although the reports can diverge.

SpaceX fell 12.5 percent despite reporting a 92 percent jump in second-quarter revenues on AI computing deals and Starlink satellite growth, but analysts pointed to worries about spending after expenditures exceeded $18 billion in the three months ending in June.

Disney jumped 2.6 percent after reporting better-than-expected profits, citing a strong performance in its theme park business.