Nasdaq leads Wall Street gains as SpaceX, Super Micro boost AI sentiment
SPY•The Nasdaq rose 1.05%, the S&P 500 gained 0.58% and the Dow added 0.69% as SpaceX and Super Micro results lifted AI-related stocks. Netflix fell 5.3% after a weaker-than-expected fourth-quarter profit forecast.
1. AI stocks lead gains
U.S. stocks closed higher on Wednesday, led by the Nasdaq, after results from SpaceX and Super Micro Computer improved investor appetite for AI-related stocks. SpaceX shares rose 7.8% after the company posted its first profit as a public company, while Super Micro gained 9.6% after forecasting quarterly revenue and profit margin above Wall Street estimates.
2. Technology peers rise
Super Micro's results lifted Hewlett Packard Enterprise 3.7% and Dell 5.3%. The S&P 500 technology index advanced 1.6%, and the Philadelphia Semiconductor index rose 2%. Investors have been concerned about the sustainability and profitability of large AI investments; one strategist said the results would not answer all questions about returns but were a good start.
3. Other stocks weigh
The Dow rose 360.21 points to 52,856.09, the S&P 500 gained 44.60 points to 7,757.17 and the Nasdaq added 278.04 points to 26,702.86. Communication services stocks fell 1.3%; AT&T dropped 6.5% despite beating quarterly expectations, and Netflix slid 5.3% after issuing a weaker-than-expected fourth-quarter profit forecast.
