US MARKETS
Nasdaq rises 1.05% as AI optimism lifts Wall Street
US stocks closed higher on October 21, led by the Nasdaq, as company updates revived interest in AI-linked shares. Weakness in Netflix and AT&T limited the broader advance.
BharatVox ·
The Nasdaq Composite gained 1.05% to 26,701.61 on Wednesday, October 21, leading US stocks higher as company updates encouraged renewed buying in artificial intelligence-linked shares. The S&P 500 rose 0.58% to 7,757.74, while the Dow Jones Industrial Average added 0.68% to 52,851.78, according to Economic Times Markets, which cited Reuters.
Super Micro Computer helped drive the advance after forecasting quarterly revenue and profit margins above Wall Street expectations. Shares in the AI server supplier jumped, with HPE and Dell also benefiting as investors took the outlook as an encouraging signal for AI infrastructure demand.
Company updates ease some AI spending concerns
The report also attributed the improved mood to SpaceX, saying the company had recorded its first profit since becoming publicly traded. It said Elon Musk expressed support for a possible combination of SpaceX and Tesla, helping Tesla shares rise. The reported remarks were not an announcement of a merger agreement.
The gains followed a sharp decline in AI-linked shares the previous week, when investors questioned whether large data-centre investments would deliver sufficient returns. Edward Jones senior global strategist Angelo Kourkafas described the company updates as an encouraging development, while cautioning that they did not resolve the wider questions about returns on AI investment.
Technology was the S&P 500's strongest sector. Semiconductor shares also rallied after a volatile month.
Netflix and AT&T weigh on the advance
Communications services shares held back the broader market. AT&T declined despite exceeding third-quarter revenue and profit expectations. The report linked the weakness to competitive concerns arising from SpaceX's results and its recent wireless spectrum purchase.
Netflix fell after projecting fourth-quarter profit below expectations, while Alphabet also declined. Outside technology and communications, Abbott Laboratories lost ground after lowering its 2026 sales-growth forecast.
Investors were looking next to results from companies including Meta and Tesla for further indications of whether earnings could sustain enthusiasm for the AI trade.
Fact-check this story · Source: Economic Times Markets: US stocks today: Nasdaq leads Wall Street higher as SpaceX, Super Micro lift AI sentiment. This AI-assisted account is based on the linked source, not independent on-the-ground reporting by BharatVox. Any opinion is separately labelled.
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