Nasdaq climbs over 1% as SpaceX, Super Micro improve AI sentiment

On Wednesday, the Nasdaq experienced a significant rise of over 1% due to improved AI sentiment, following strong quarterly results from SpaceX and Super Micro Computer. SpaceX, the rocket and space technology firm owned by Elon Musk, saw its shares soar by 9.8% after he expressed on Tuesday that a merger between SpaceX and Tesla could be a good idea. Furthermore, SpaceX reported its first profit as a public company, a milestone for the company.

Tesla shares also benefited, climbing by 3.5% during the trading session. Meanwhile, Super Micro Computer led the S&P 500 gains, with its stock jumping 10.3% to climb to the top of the index. The AI server maker exceeded Wall Street's estimates for both quarterly revenue and profit margins, demonstrating that demand for AI-related products remained robust. Other tech peers, such as HPE and Dell, also experienced gains, with increases of 2.2% and 4.5%, respectively.

Investors found relief in these positive reports as worries about the profitability of AI expansion had triggered a sell-off in AI-linked stocks the previous week. CoreWeave, a data center operator, had been the focal point of the sell-off, with its shares barely managing to stay flat, indicating that caution still existed in the sector. The overall sentiment towards the tech industry had shifted, with investors acknowledging the stress in credit markets.