SpaceX laid out $18.4 billion in capital investments during the April-to-June quarter, with most of the spending supporting artificial-intelligence efforts. In its earnings report Tuesday, the company recorded $15.8 billion in capital expenditures for AI during the period, with its space division and Starlink-focused unit tallying up almost $1.2 billion and $1.4 billion in capex, respectively. Last year, SpaceX spent $20.7 billion on capital investments, reflecting its expansive plans for a future where AI and space converge. A number of tech giants are also putting enormous sums into AI-related capex, with the spending, at times, unnerving investors. SpaceX has said it expects to allocate large amounts of investment for AI computing resources, and that it will take multiple years before the spending turns into adjusted earnings.

Strong performance on the US markets gave the Swiss stock market a boost on Tuesday. The SMI rose by 0.6 per cent to 14,463 points. Among the 20 SMI constituents, 14 shares rose and five fell, whilst one share closed unchanged. Trading volume stood at 21.98 (previously: 19.78) million shares. Cyclical stocks were in demand in Switzerland. They benefited from falling oil prices. ABB, Holcim, Amrize, Sika and Geberit rose by up to 2 per cent. Partners Group continued the previous day’s rise, gaining a further 3.3 per cent. However, the asset manager’s share price has already taken a heavy hit this year and therefore has some catching up to do. UBS shares rose by 2 per cent. Insurers lagged behind the broader market. Whilst Swiss Life gained 0.5 per cent, Swiss Re and Zurich lost 0.3 and 1 per cent respectively. Among small-cap stocks, Ams-Osram gained 3.4 per cent following the release of impressive financial results.

Europe
European stocks closed higher on Tuesday, with some of the markets in the region hitting fresh record highs, or multi-month highs, as easing worries about tech valuations, optimism about U.S.-Iran peace talks and weak oil prices aided sentiment. The pan European Stoxx 600 climbed 0.73%. The UK's FTSE 100 gained 0.2%, Germany's DAX ended up by 0.77% and France's CAC 40 moved up 0.61%, while Switzerland's SMI settled with a gain of 0.64%. Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Netherlands, Poland, Spain, Sweden and Türkiye closed higher. Iceland, Norway and Russia ended weak, while Portugal closed flat. In the UK market, mining stocks turned in a fine performance, while energy stocks drifted down on weak oil prices. Antofagasta surged nearly 7%, Anglo American Plc moved up 5.5%, Fresnillo climbed 5.3%, Endeavour Mining gained 3.4% and Rio Tinto advanced 3.2%, while Glencore posted a gain of 2.15%. Halma climbed 5.5%. Polar Capital Technology Trust also ended up by about 5.5%. Melrose Industries, Computacenter, Barratt Redrow, ICG, Babcock International, Scottish Mortgage, Aberdeen Group, Spirax Group, Croda International, Standard Chartered and Kingfisher gained between 2%-4%. Building materials supplier Travis Perkins soared 18.5% after reporting strong interim results. Shares of medical products company Smith & Nephew dropped more than 6% after the group cut its full-year revenue growth forecast, citing weaker demand for hip and knee implants in the United States. HSBC Holdings ended 0.8% down. The bank raised its target for cost savings and announced a new share buyback after reporting better-than-expected second-quarter results. For the six-month period to June 30, HSBC Holdings reported a net income of $14.626 billion, or $0.85 per share, compared with $11.510 billion, or $0.65 per share in the same period last year.

United States
The major averages on Wall Street have moved sharply higher on Tuesday, extending the strong upward move seen over the past several sessions. The major averages all showed significant moves to the upside, with the Dow, NASDAQ and S&P 500 all hitting fresh record closing highs. The Dow rallied 907.47 points or 1.71 percent to finish at 54,085.88, while the NASDAQ soared 671.10 points or 2.59 percent to end at 26,584.99 and the S&P 500 jumped 136.02 points or 1.79 percent to close at 7,736.52. The continued strength on Wall Street comes amid an extended nosedive by the price of crude oil, with U.S. crude oil futures plummeting after Treasury Secretary Scott Bessent claimed the U.S. and Iran could reach a deal to reopen the Strait of Hormuz within the next couple days. Tech stocks have led the rally amid a positive reaction to earnings news from enterprise software giant Palantir (PLTR); shares of the company surged more than 25 percent it reported better than expected second quarter results and raised its full-year guidance. In economic news, the Commerce Department said the U.S. trade deficit narrowed roughly in line with estimates in June. The trade deficit shrank to $73.3 billion in June from $77.6 billion in May. Economists had expected the trade deficit to decrease to $73.0 billion. Sector News Semiconductor stocks turned in some of the market's best performances on the day, with the Philadelphia Semiconductor Index soaring by 4.9 percent. Networking, computer hardware and software stocks also saw significant strength, reflecting broad based interest in the tech sector.

Asia
Asian stock markets are trading higher midweek, with some posting strong gains. The rise is particularly marked on the Seoul stock exchange, where the Kospi is up 4.4 per cent.

Bonds
In the U.S. bond market, treasuries are extending the significant rebound seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.7 basis points at 4.639 percent.

Analysis
UBS lowers its Nemetschek target to EUR 52 (53) – Sell
Bank of America raises its HSBC target to 1,720 (1,650) p – Buy
JPMorgan raises its Rolls-Royce target to 1,800 (1,625) p – Overweight

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