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

On Wednesday, the tech-heavy Nasdaq experienced a surge, with gains driven by stronger-than-expected quarterly results from SpaceX and Super Micro Computer, which bolstered investor confidence in AI-related stocks. Meanwhile, Netflix's shares fell as its forecast did not meet market expectations.

Elon Musk's rocket and space technology company, SpaceX, saw its stock rise by 9.8 percent following his Tuesday announcement that a merger between SpaceX and Tesla would be a good idea. Moreover, SpaceX achieved its first profit as a public company, while Tesla shares also increased by 3.5 percent.

Super Micro Computer led the S&P 500 with a 10.3 percent gain, making it the top performer of the day. The AI server maker beat Wall Street estimates by forecasting higher-than-expected quarterly revenue and profit margins, indicating that demand for AI-powered products remained robust. Peer companies HPE and Dell also rose, with gains of 2.2 percent and 4.5 percent, respectively.

The positive reports provided solace to investors amid concerns over the profitability of AI expansion, which had triggered a sell-off in AI-linked stocks last week. CoreWeave, a data center operator, was particularly affected, with its shares slipping slightly, signaling lingering caution in the sector. The overall sentiment towards tech stocks had shifted, with investors expressing relief from the credit market stress that had been reported recently.