Nasdaq rises 1.1% as AI stocks recover and Super Micro jumps
Key Facts
The Nasdaq Composite closed Wednesday, October 21, 2026, up 1.1% as artificial intelligence stocks recovered and shares of companies reporting positive revenue updates advanced. The index added 278.04 points to reach 26,702.86, according to closing figures reported by the Associated Press. The S&P 500 rose 0.6% in a session marked by gains in AI-related stocks and losses in Netflix following its earnings report. It gained 44.60 points to finish at 7,757.17, according to the agency. Nvidia was the biggest driver of the index's advance, rising 2.5% during the session.
Super Micro Computer shares jumped 9.5% on Wednesday after the company updated its revenue outlook, according to the Associated Press. The company said in its statement that its preliminary revenue estimate for the first quarter of fiscal 2027 had risen to a range of $18.5 billion to $19.5 billion. Its previous guidance for the same period ranged from $14.5 billion to $15.5 billion, putting the entire new range above its previous estimates. The company attributed the increase primarily to "increased demand for AI platforms," according to its statement. Super Micro provided the figures in a preliminary, unaudited business update ahead of its full quarterly results.
Netflix shares, meanwhile, fell 5.3% during the same session despite the company's earnings beating analysts' expectations, according to the Associated Press. The company's shareholder letter showed diluted earnings per share of $0.87 in the third quarter of 2026. That compared with earnings of $0.59 per share in the third quarter of 2025, a year-on-year increase of 49%, according to the letter. Revenue totaled $12.87 billion in the third quarter, according to figures from its results reported by the agency. That compared with revenue of $11.51 billion in the corresponding period, a year-on-year increase of 12%.
But Netflix cut its annual advertising revenue forecast to about $2.7 billion, according to the shareholder letter. The company had previously expected revenue of about $3 billion from the business during 2026. It attributed the revision to a slower rollout of some advertising product capabilities than it had expected, prompting it to revise its annual estimate for the business. For the final quarter of the year, the company forecast total revenue of $13.4 billion, according to the Associated Press. That estimate fell short of analysts' expectations of $13.5 billion, leaving the reported increases in earnings and revenue accompanied by weaker forecasts for advertising and next quarter's revenue.
The recovery in AI stocks followed a selloff the previous week, according to Reuters. That selloff was linked to concerns about the sustainability of massive AI spending and the profitability of building the infrastructure it requires. CoreWeave was at the center of the volatility in these stocks, according to the agency. In U.S. energy data, the Energy Information Administration reported a decline in commercial crude oil inventories of 3.1 million barrels during the week ended October 16, 2026. Inventories stood at 412.5 million barrels, according to the administration's official summary, which excludes the Strategic Petroleum Reserve from these figures.
Netflix maintained its annual revenue forecast at $51.1 billion for 2026, according to the shareholder letter. That represents expected year-on-year growth of 13% in the company's total revenue. It also reaffirmed its forecast for an operating margin of 31.5% for the same year while revising its advertising business estimates. Reuters had reported that investors were awaiting results from Meta and Tesla scheduled for after Wednesday's close as a test of continued confidence in AI investment. Super Micro, meanwhile, set November 3, 2026, for its conference call to announce full results for its fiscal first quarter, following its preliminary revenue update.