Nasdaq Gains 1.05% as SpaceX Turns Profitable, AI Server Sales Outlook Lifts Tech

U.S. stocks rose across the board after SpaceX turned profitable and an AI server maker raised its sales outlook. Buying in semiconductor and server shares helped push the Nasdaq Composite up more than 1%.

On Oct. 21, the Nasdaq Composite closed up 278.04 points, or 1.05%, at 26,702.86 in New York. The Dow Jones Industrial Average gained 360.21 points, or 0.69%, to 52,856.09, while the S&P 500 rose 44.60 points, or 0.58%, to 7,757.17.

SpaceX jumped 7.79% a day after reporting its first profit since going public. Investors also focused on Chief Executive Officer Elon Musk's remark that a merger with Tesla would be "a good idea." Tesla shares rose 3.41%.

AI server stocks also advanced. Super Micro Computer surged 9.55% after raising its preliminary revenue forecast for the first quarter of fiscal 2027 to $18.5 billion-$19.5 billion from $14.5 billion-$15.5 billion. Dell Technologies and Hewlett Packard Enterprise climbed 5.27% and 3.71%, respectively.

The Philadelphia Semiconductor Index rose 1.97%. AMD gained 3.36% and Nvidia added 2.54%, while SK Hynix and Micron Technology advanced 2.48% and 1.96%, respectively. TSMC and Broadcom also finished higher, up 1.60% and 1.03%, respectively.

CoreWeave, by contrast, fell 0.50% after swinging between gains and losses during the session. Netflix dropped 5.31% on disappointment over its third-quarter results. The company narrowed its full-year revenue forecast to $51.1 billion from a prior range of $51 billion-$51.4 billion. Alphabet and Amazon also fell 1.62% and 0.10%, respectively.

Oil prices were mixed. West Texas Intermediate crude for December delivery settled 0.68% lower at $97.15 a barrel on the New York Mercantile Exchange. Brent crude for December delivery rose 0.03% to $108.82 a barrel on ICE Futures Europe in London. Military tensions in the Middle East and hopes for renewed peace talks between Russia and Ukraine pulled in opposite directions.