SpaceX results lift the Nasdaq 1% while the 10-year tops 5%

The Nasdaq closed 1.05% higher last night. Newly public SpaceX posted 161% revenue growth and its first quarterly profit, and strong results from Super Micro helped revive appetite for AI stocks. Elon Musk even floated a possible merger with Tesla, which kept attention locked on the group. Netflix, on the other hand, slid after guiding to its slowest revenue growth in three years.

Worries about an AI bubble and debt haven't gone away. Australian data-center firm NextDC plunged 40% after a profit warning blamed on power constraints and local opposition, and CoreWeave was weaker on borrowing costs. Citadel's Ken Griffin said AI is probably a bubble but still worth holding. One analysis says AI needs about $1.4 trillion in annual revenue by 2030, which gives a sense of how big the bill is.

Rates took another step up. The U.S. 10-year Treasury yield rose above 5% for the first time in more than 20 years, and economists expect it to stay there through 2027. Housing feels it most: September pending home sales fell 7.3% in a month and 11.3% from a year earlier, a record low, and mortgage applications dropped another 7% even as mortgage rates eased slightly.

Energy remains expensive. Oil is hovering around $110 a barrel, and while Persian Gulf crude flows are close to pre-war levels, the recovery is fragile and prices aren't expected to fall quickly. Meanwhile, money fleeing AI jitters pushed health care stocks to a record high, which one outlet read as a warning sign for the rest of the market.