(Updates prices to late afternoon)
* Indexes up: Dow 0.58%, S&P 0.73%, Nasdaq 1.28%
* Netflix slides after bleak forecast
* AT&T falls despite topping quarterly estimates
* Super Micro Computer’s results lift peers HPE, Dell
By Sinéad Carew and Purvi Agarwal
Oct 21 (Reuters) – The tech-heavy Nasdaq led Wall Street’s gains on Wednesday after quarterly results from SpaceX and Super Micro Computer improved investor appetite for stocks related to artificial intelligence, while Netflix slipped as its forecast disappointed investors.
SpaceX shares were up 7% after Elon Musk’s rocket and space technology firm posted its first profit as a public company. Musk said a merger of SpaceX and Tesla would be “a good idea,” sending Tesla shares up 3.5%.
Super Micro jumped more than 9% and was among the S&P 500’s top gainers after the AI server maker forecast quarterly revenue and profit margin above Wall Street estimates, signaling that AI demand remained resilient. Its peers rose too, HPE by 4.2% and Dell by 5%.
The reports provided some reassurance to investors who have been worried about the sustainability of massive spending on AI buildouts and their profitability. The technology sector was hammered last week by a selloff in AI-linked stocks, with data center operator CoreWeave at the center of the storm.
“It’s really a positive technology story for almost anyone that is somewhat involved in the artificial intelligence ecosystem,” said Marc Dizard, chief investment officer at Huntington Bank. He noted that SpaceX had “crushed” expectations.
“The technology market reaction has been a reaffirmation that the artificial intelligence trade is still intact.”
Dizard said sentiment can quickly shift around AI, and that investors will seek reaffirmation when they monitor earnings reports from companies such as Meta, due out after the market close when Tesla is also scheduled to report results.
At 2:21 p.m. ET (1821 GMT), the Dow Jones Industrial Average rose 304.97 points, or 0.58%, to 52,800.85, the S&P 500 gained 55.99 points, or 0.73%, to 7,768.65 and the Nasdaq Composite gained 337.67 points, or 1.28%, to 26,762.48.
The S&P 500 information technology sector rose 1.3%, lifting the benchmark index, as most chip stocks rebounded.
The Philadelphia SE Semiconductor index was up 1.3%. The index has had a volatile month so far, with its longest losing streak in 18 years, eight straight sessions of declines.
The overall rise on the S&P 500 was contained by a 1.2% drop in communication services stocks, dragged down by a 6.3% slide in telecom operator AT&T even after it beat third-quarter revenue and profit expectations.
Other telecommunications service providers fell along with AT&T. Dizard said the strong results from SpacEx may have fanned worries that it will become a more formidable competitor after a recent wireless spectrum purchase.
Netflix shares sank 4.5% after the video streaming company issued a weaker-than-expected forecast for its fourth-quarter profit. Google’s parent Alphabet also lost 1.6%.
Abbott Laboratories fell 3.7% after the medical device maker cut its 2026 sales growth forecast.
Advancing issues outnumbered decliners by a 1.56-to-1 ratio on the NYSE where there were 90 new highs and 161 new lows.
On the Nasdaq, 2,883 stocks rose and 1,818 fell as advancing issues outnumbered decliners by a 1.59-to-1 ratio. The S&P 500 posted 21 new 52-week highs and 2 new lows while the Nasdaq Composite recorded 48 new highs and 168 new lows.
(Reporting by Sinead Carew in New York, Purvi Agarwal and Tharuniyaa Lakshmi in Bengaluru; Editing by Maju Samuel and David Gregorio)
