Stocks End Higher as Nasdaq Jumps 1.21% Crude Oil Tumbles Nearly 2%

📺 What happens when the bond market finally calls the bluff?

Wall Street closed broadly higher on Wednesday as a tech-led rally overcame steep losses in energy, with investors digesting a flurry of earnings from major semiconductor and AI infrastructure firms. The Nasdaq Composite surged 252.87 points, or 1.21%, to close at 21,169.40, while the S&P 500 added 45.90 points, or 0.73%, finishing at 6,345.09. The Dow Jones Industrial Average edged up 81.75 points, or 0.19%, ending the session at 44,193.50.

Tech giants spearheaded the day’s advance, shrugging off regulatory concerns and mixed earnings in the AI hardware space. Market breadth skewed positive, with over 54% of NYSE-listed stocks advancing.

AMD Rattled by China Headwinds, But Data Center Momentum Holds

Shares of Advanced Micro Devices (AMD) fell 6.56% following a mixed second-quarter report. The chipmaker posted $7.69 billion in revenue, a 32% year-over-year increase that beat expectations. However, adjusted earnings per share of $0.48 missed consensus by a penny, weighed down by an $800 million inventory write-down tied to U.S. restrictions on AI GPU exports to China.

Data center revenue grew 14% to $3.2 billion, driven by strong EPYC CPU sales, but shipments of MI308 GPUs fell 12% sequentially due to export licensing delays. CEO Lisa Su said the company is accelerating production of its next-gen MI350 AI accelerators and is on track to ship $7 billion worth in 2025. Still, AMD excluded China-bound GPU sales from its Q3 guidance, which came in above estimates at $8.7 billion, suggesting ongoing geopolitical uncertainty.

“The inability to monetize China-bound GPUs could hamper near-term upside,” Su acknowledged, even as she emphasized growth in non-China demand.

Super Micro Slumps on Margin Concerns

Super Micro Computer (SMCI) plunged nearly 20% after posting fourth-quarter results that missed on both revenue and earnings. The AI server specialist reported revenue of $5.76 billion and adjusted EPS of $0.41, both shy of Wall Street expectations. Its Q1 forecast of $0.40–$0.52 EPS and revenue of $6.0–$7.0 billion also came in light, compounding concerns about capital constraints and margin pressures.

Though AI-related sales accounted for more than 70% of Q4 revenue, the company cited revenue recognition delays and customer specification changes as drags on performance. Gross margins fell to 9.6%, and net income dropped to $195 million from $297 million a year ago.

Despite the miss, SMCI raised its full-year 2026 revenue forecast to at least $33 billion—above Street estimates of $30 billion—highlighting continued demand for AI infrastructure. Still, investors punished the stock for its inability to convert that growth into profits.

Commodities Drag as Crude Oil Slumps

Energy stocks came under pressure as crude oil prices tumbled. September contracts for West Texas Intermediate fell $1.23, or 1.89%, to $63.93 per barrel. The selloff followed a sharp intraday reversal after peaking at $66.75, according to NYMEX data. Concerns about demand softening and technical resistance likely contributed to the pullback.

Gold futures for December delivery traded flat, slipping $0.30 to settle at $3,434.40 per ounce. Prices oscillated between $3,411.70 and $3,440.50 during the day, reflecting investor indecision amid equity gains and ongoing geopolitical crosscurrents.

Outlook: AI’s Growth Story Meets Margin Reality

Today’s action reinforced a widening divide in investor sentiment: optimism around long-term AI-driven growth, tempered by near-term concerns over profitability and regulatory friction. While the Nasdaq and S&P 500 climbed, led by large-cap tech, the Russell 2000 dipped 0.12%, suggesting persistent caution in small-cap equities.

In the absence of major macroeconomic data or central bank signals, earnings remained the focal point—and underscored how unforgiving markets can be when lofty expectations collide with operational hiccups.