Nasdaq climbs over 1% as SpaceX, Super Micro improve AI sentiment
SPY•The Nasdaq rose 1.05% in late-morning trading as SpaceX gained 9.8% and Super Micro Computer jumped 10.3% after its upbeat quarterly outlook. Netflix fell 1.8% on a weaker-than-expected fourth-quarter profit forecast.
1. AI shares lift Nasdaq
The tech-heavy Nasdaq led gains on Wednesday after results from SpaceX and Super Micro Computer improved appetite for AI-linked stocks. At 11:36 a.m. ET, the Nasdaq Composite was up 1.05%, the S&P 500 gained 0.46% and the Dow rose 0.25%.
2. Company moves diverge
SpaceX rose 9.8% after Elon Musk said a merger with Tesla would be “a good idea”; the company also posted its first profit as a public company. Super Micro Computer jumped 10.3% after forecasting quarterly revenue and profit margin above Wall Street estimates, while peers HPE and Dell rose 2.2% and 4.5%, respectively. Netflix slipped 1.8% after issuing a weaker-than-expected fourth-quarter profit forecast, and AT&T fell 6.3% despite beating third-quarter estimates.
3. Investors weigh AI outlook
The gains followed a selloff in AI-linked stocks the previous week, driven by concerns about the profitability of AI infrastructure investment. Investors are scrutinizing earnings for signs of whether the spending cycle is sustainable; markets largely expect the Federal Reserve to hold rates despite data supporting the case for another hike.
