Wall Street closed higher Wednesday, led by gains in technology shares following strong quarterly reports from SpaceX and Super Micro Computer that bolstered investor confidence in artificial intelligence-related stocks. The Nasdaq Composite advanced 1.05 percent to 26,702.86, while the S&P 500 gained 0.58 percent to 7,757.17 and the Dow Jones Industrial Average rose 0.69 percent, ending at 52,856.09.
SpaceX shares surged 7.8 percent after the aerospace company, founded by Elon Musk, posted its first profit since going public. Following the earnings release, Musk suggested that a merger between SpaceX and Tesla “would be a good idea,” contributing to a further boost in Tesla’s shares. Tesla shares ended the regular session up 3.4 percent and climbed another 1.6 percent in after-hours trading.
Super Micro Computer, a maker of servers used in artificial intelligence applications, saw its shares jump 9.6 percent, ranking among the top performers in the S&P 500. The company forecasted quarterly revenue and profit margins that exceeded Wall Street expectations, suggesting sustained demand for AI infrastructure. This was a welcome development after a recent selloff in AI-related stocks, which had roiled technology shares in the previous week, especially impacting data center operator CoreWeave.
According to Angelo Kourkafas, senior global strategist at Edward Jones, these earnings reports helped to alleviate some investor concerns about the profitability and sustainability of AI investments, although uncertainties remain. He noted that while these results do not resolve all questions regarding returns on AI spending, they represent a positive initial signal for the sector.
The technology sector, as measured by the S&P 500 Information Technology index, posted the largest gain among the 11 major sectors, rising 1.6 percent. Meta Platforms also made gains, with shares up 3 percent in after-hours trading following their earnings release.
In Canada, the S&P/TSX Composite Index advanced 0.6 percent to close at 36,324.99, its highest level since late September. The increase was driven primarily by the financial sector, which rose 1.4 percent. Shares of Toronto-Dominion Bank finished nearly 2 percent higher as investors appeared encouraged by Ottawa’s announced support measures for industries affected by U.S. tariffs.
Despite weakness in communication services stocks that limited some upside on Wall Street, overall market sentiment was supported by earnings that reassured investors on key growth segments such as artificial intelligence and space technology.