US stocks rose in after-hours trading, driven by strong financial results from SpaceX, with substantial growth in its artificial intelligence (AI) business serving as the main catalyst.

An S&P 500 index ETF with roughly $820 billion in assets climbed following the close of regular trading.

The conglomerate owned by Elon Musk, spanning satellites, rockets, and AI operations, reported net income of $4.4 billion for the quarter ending in September, far exceeding the analysts' average estimate of $1.88 billion.

During the regular session, more than 400 S&P 500 constituents advanced.

Brent crude settled near $109 per barrel.

A diplomat involved in the negotiations said that while reports suggesting the United States and Iran were on the verge of reaching a peace agreement were inaccurate, talks aimed at securing a deal are continuing.

Investors are preparing for a wave of technology company earnings reports, seeking clues on whether the AI boom can justify the industry's massive investments.

Following SpaceX's results, market attention will quickly shift to Meta Platforms Inc.'s earnings release on Wednesday.

Ulrike Hoffmann-Burchardi, from UBS Group's Chief Investment Office, said that with increasingly high comparison bases and persistent macroeconomic risks, the key question is whether recent growth rates can be sustained.

"From a fundamental perspective, we expect a strong third-quarter earnings season for the technology sector, but elevated market expectations could lead to volatility in individual stocks," she said.

As of the US market close, the S&P 500 rose 0.3% to 7,712.57 points; the Dow Jones Industrial Average gained 1% to 52,495.88 points; the Nasdaq Composite was essentially flat at 26,424.82 points; the Nasdaq 100 fell 0.1% to 29,490.28 points; and the Russell 2000 climbed 1.7% to 2,773.42 points.