Nasdaq leads Wall Street gains as SpaceX, Super Micro boost AI sentiment

Wall Street experienced gains on Wednesday, led by the tech-heavy Nasdaq, following positive quarterly results from SpaceX and Super Micro Computer. SpaceX, under Elon Musk's leadership, reported its first profit as a public company, with shares surging 7.8%. Musk suggested a potential merger between SpaceX and Tesla, further bolstering Tesla's stock.

Super Micro Computer's shares jumped 9.6% after the company exceeded Wall Street estimates, signaling continued resilience in AI demand. This positive earnings news helped alleviate concerns about the sustainability of AI investments and provided reassurance to investors. The technology sector, which had faced a sell-off the previous week, saw a 1.6% increase, making it the largest gain among the S&P 500's 11 major industry sectors.

The Nasdaq Composite added 1.05% to close at 26,702.86, while the Dow Jones Industrial Average rose 0.69% to 52,856.09. However, communication services stocks, including T-Mobile US and Verizon Communications, underperformed, contributing to a 1.3% decline in technology due to weaker-than-expected forecasts from Netflix and Google's parent, Alphabet.