Update: US Equity Indexes Rise as Blockbuster SpaceX Results, Super Micro Computer's Fiscal Q1 Update Boosts AI Trade

05:39 PM EDT, 10/21/2026 (MT Newswires) -- (Updates with index/price moves and company news from the first paragraph.) US equity indexes rose as a rally in SpaceX (SPCX) and Super Micro Computer (SMCI) shares further energised the AI trade. The Nasdaq Composite advanced 1.1% to 26,702.86, the S&P 500 climbed 0.6% to 7,757.17, and the Dow Jones Industrial Average gained 0.7% to 52,856.09 at the close on Wednesday. Six of the top 10 stocks in a category with market capitalization exceeding $200 billion were from the technology sector, according to data compiled by Finviz. SpaceX topped this list of mega-caps, gaining 7.8%. The iShares PHLX Semiconductor Exchange Traded Fund, with about $48.43 billion in assets under management, jumped 2.1% as investors continued to dip their toes back in the AI trade after last week's sharp sell-off. SpaceX, which also led Nasdaq's gainers, said late Tuesday it swung into the black in Q3 as revenue rose, driven by strong gains in its artificial intelligence and connectivity divisions. Meanwhile, Elon Musk, who heads both SpaceX and Tesla, said the duo has formed special committees to evaluate a potential merger. The merger could allow the companies to share technology, reduce overlapping costs and accelerate development, Saxo Bank said in a note Wednesday, adding that combined market value is expected to be about $3.5 trillion. "Those results [from SpaceX] have boosted the tech mood," Jim Reid, global head of macro and thematic research at Deutsche Bank, said in a note. Meanwhile, Super Micro Computer's shares surged 9.5%, among the top gainers on the S&P 500 and the Nasdaq, after the company reported preliminary fiscal Q1 revenue and margin results above expectations late Tuesday. The "strong beat" from Super Micro is "another positive sign for Q3 AI demand," Wedbush Securities analysts, including Matt Bryson, said in a note. Netflix (NFLX) dropped 5.3%, among the worst performers on the S&P 500 and the Nasdaq, after the streaming giant's below-consensus Q4 outlook undermined better-than-expected Q2 earnings. In economic news, mortgage applications fell 5.3% in the week ended Oct. 16 amid declines in refinancing activity and new home applications, while borrowers whistled past the first drop in 30-year fixed mortgage rates in two months, according to the Mortgage Bankers Association. This follows a 2.7% decrease in overall activity in the week ended Oct. 9. The US Treasury's 20-year auction hit a high yield of 5.469%, up from 5.420% in the previous auction. The bid-to-cover ratio was 2.73, above the 2.57 in the prior sale, implying that the demand for government debt rose. US Treasury yields traded mixed. The 10-year yield was little changed at 5.12%, while the 30-year rate fell 1.5 basis points to 5.41%. The two-year rate rose two basis points to 4.81%. In energy market news, US commercial crude oil stocks, excluding inventories in the Strategic Petroleum Reserve, fell by 3.1 million barrels in the week ended Oct. 16, after an 8.6-million-barrel decrease in the previous week, versus the 340,000-barrel decline expected in a Bloomberg-compiled survey. The front-month West Texas Intermediate crude oil contract slipped 0.4% to $97.47 per barrel, while global benchmark Brent climbed 0.6% to $109.39 per barrel. Gold futures edged up 0.4% to $4,158.9, and silver futures ground 0.2% higher to $58.11.