Nasdaq rises 1% as AI stocks recover on strong earnings
Wall Street closed higher Wednesday after strong quarterly results from SpaceX and Super Micro Computer revived investor interest in AI-related stocks, while disappointing guidance from Netflix weighed on that stock. The tech-heavy Nasdaq Composite rose 1.05% to 26,702.86. The S&P 500 gained 0.58% to 7,757.22, and the Dow Jones Industrial Average rose 0.69% to 52,856.09. Super Micro shares climbed over 9% after forecasting revenue and margins above expectations, confirming sustained demand for AI servers. SpaceX shares jumped 7% on a 161% revenue increase and its first profit as a public company. The rally followed a recent sell-off driven by concerns over the sustainability of high AI infrastructure spending. Netflix fell 5.3% after issuing a weaker-than-expected fourth-quarter profit forecast and lowering its ad revenue outlook. Tesla shares rose about 3.4% ahead of its earnings report.