SpaceX, AMD, Arista, Block, Super Micro, and More Stocks That Explain Today’s Market

Traders working on the floor of the New York Stock Exchange. (Michael M. Santiago/Getty Images)

Key Points

Stock futures rallied after Democrats won control of the House and Senate, ending weeks of uncertainty.
SpaceX and Tesla stocks fell premarket after CEO Elon Musk spent nearly half a billion dollars trying to prevent a Democratic victory.
Defense stocks RTX and Lockheed Martin declined as investors bet Democrats would block Donald Trump’s proposed military spending boost.

Stock futures were rallying on Wednesday after the Democrats won control of the House and the Senate, sparking a relief rally after weeks of uncertainty.

Rocket and AI company SpaceX and electric vehicle maker Tesla were taking a hit in the premarket, though. Elon Musk, who is CEO of both, had spent almost half a billion dollars on trying to prevent a blue wave.

Defense stocks were also struggling. RTX slid 2.8% and Lockheed Martin declined 3.2% as investors bet the Democrats would scupper President Donald Trump’s bid for a $1.5 trillion boost to military spending.

Advanced Micro Devices rose 6.2%. The semiconductor maker’s third-quarter earnings came in well above Wall Street’s expectations, suggesting Big Tech still can’t get enough of artificial-intelligence chips.

Arista Networks was the S&P 500’s best performer ahead of the opening bell, surging 12%. The cloud infrastructure provider posted its fastest revenue growth since its 2014 IPO the AI buildout boosts demand.

Block jumped 8.7%. The Square and Cash App owner beat analysts’ third-quarter earnings target and bolstered its full-year outlook as an AI-powered transformation plan takes hold.

Novo Nordisk climbed 4.3%. The Danish drugmaker raised its full-year earnings outlook, as third-quarter sales of its Wegovy weight-loss pill came in well above the Street’s expectations.

Super Micro Computer rallied 7.7%. The server maker turned in strong first-quarter results, which were enough to boost its stock even as tech investors worry about a potential slowdown in AI spending.

Write to George Glover at george.glover@dowjones.com

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