The Dow Jones Industrial Average added 360.21 points to reach 52856.09, while the tech-heavy Nasdaq Composite climbed 1.05% to 26702.86. Investors reacted positively to Elon Musk’s disclosure that SpaceX is exploring a merger with Tesla, alongside plans for a chip-fabrication joint venture with Intel. Intel shares rose 1.4% following the news, which projected large-scale production by 2028.

Optimism regarding AI infrastructure pricing helped offset rising Treasury yields, as the 10-year note climbed to 5.145%. Tech-investment strategist Luke Lango noted that SpaceX has effectively repositioned itself as a primary AI infrastructure provider, utilizing its satellite operations to fund aggressive computing expansion. This sentiment supported chip makers, even as other segments faced headwinds. Meta shares managed a 0.5% gain despite a $25 billion court-ordered penalty in New Mexico.

Not all sectors shared the momentum. AT&T shares slumped 6.4% as SpaceX executives signaled an intent to disrupt the cell-phone service industry. Meanwhile, Abbott Laboratories saw shares fall 1.9% after announcing plans to spin off its nutrition unit, including the Pedialyte and Similac brands, by late next year. Elsewhere, the U.S. dollar strengthened against a backdrop of rising French bond yields, while oil futures retreated 0.7% to $97.15 a barrel.