Dow rises 0.69%, S&P 500 gains 0.58%, and Philadelphia Semiconductor Index surges 1.97%; SpaceX and Supermicro bolster sentiment, while Netflix and telecom stocks decline.
Wall Street closed higher across the board, powered by strong earnings reports from artificial intelligence (AI)-related companies. Strong quarterly results from SpaceX and preliminary figures from Supermicro Computer heightened expectations for growth in the AI sector and robust server demand, fueling aggressive buying primarily centered on semiconductor stocks. The tech-heavy Nasdaq Composite led the gains among the three major indices.
On the 21st (local time), the Dow Jones Industrial Average finished up 360.21 points (0.69%) at 52,856.09. The S&P 500 advanced 44.60 points (0.58%) to 7,757.17, while the Nasdaq Composite climbed 278.04 points (1.05%) to close at 26,702.86.
Semiconductor shares showed notable strength. NVIDIA rose 2.54%, AMD gained 3.36%, and Micron and Broadcom increased 1.96% and 1.03%, respectively. Intel added 1.39% and Texas Instruments advanced 2.47%. The Philadelphia Semiconductor Index jumped 221.74 points (1.97%) to 11,505.56.
AI server manufacturer Supermicro released preliminary revenue figures that significantly surpassed previous forecasts. In an announcement the previous day, the company estimated its revenue for the first quarter of fiscal 2027—spanning from July to September of this year—at between $18.5 billion and $19.5 billion, up from its earlier guidance of $14.5 billion to $15.5 billion. It also projected a gross profit margin of 12.0% to 12.5%, exceeding its previous forecast of 10.4% to 10.8%. The company attributed the revenue surge primarily to expanding demand for AI platforms.
Following the announcement, Supermicro shares skyrocketed over 9%. Dell Technologies, operating in the same server market, also rose 5.27%. With gains extending from semiconductor suppliers to server manufacturers, AI infrastructure-related stocks demonstrated strong momentum.
SpaceX drew attention with a significant expansion in its AI-driven revenue. According to regulatory filings, total third-quarter revenue reached $14.575 billion, marking an approximately 161% increase year-on-year. Revenue from its Superintelligence (SI) division, which handles AI operations, hit $7.56 billion, accounting for more than half of total revenue. The division's operating result also swung from a loss to a profit compared to the same period last year.
SpaceX shares gained 7.8%, and Tesla rose 3.41%. Elon Musk announced that the boards of directors of both companies had formed special committees to explore a potential merger. However, no final decisions on a merger or deal terms have been reached.
Among other technology stocks, Apple rose 1.32%, Palantir gained 4.74%, and CrowdStrike climbed 5.26%. Microsoft and Meta advanced 0.20% and 0.47%, respectively. Conversely, Alphabet fell 1.62%, Oracle dropped 1.53%, and Amazon edged down 0.10%.
Netflix slid 5.31% amid concerns over its future growth trajectory. The company projected fourth-quarter earnings per share at $0.67, falling short of market expectations. It also lowered its full-year advertising revenue outlook from approximately $3 billion to about $2.7 billion. Netflix cited slower-than-expected deployment of certain advertising features as the reason for the downward revision.
Telecommunications stocks also faced weakness. AT&T tumbled 6.45%, T-Mobile fell 2.54%, and Verizon dropped 2.20%. AT&T projected that declines in average revenue per fiber internet user would persist into the fourth quarter, weighed down by bundled product discounts. Reuters reported that market concerns over intensifying competition stemming from SpaceX's expansion into the telecommunications business also added pressure to the sector.
SpaceX recently signed an agreement to acquire an 800MHz spectrum license as part of its push to expand its mobile telecommunications business. The transaction is slated for completion in the first half of 2027, pending regulatory approvals.
In the financial sector, Morgan Stanley advanced 3.66% and Goldman Sachs rose 2.25%, while JPMorgan edged down 0.02%. Among pharmaceutical names, Eli Lilly declined 1.01%, AbbVie dropped 1.48%, and Johnson & Johnson slipped 0.61%. Despite the tech-led market rally, divergences persisted across sectors and individual stocks.
In the bond market, the yield on the 10-year U.S. Treasury note erased its intraday losses and hovered in the 5.1% range. Brent crude futures, the global oil benchmark, settled at $108.82 per barrel.
After the closing bell, Tesla and Meta released their earnings. Countering market expectations of a cash outflow, Tesla posted $1.53 billion in free cash flow for the third quarter. Meta reported quarterly revenue of $64.6 billion, beating market estimates. Shares of both companies rose in after-hours trading following the announcements.
