Despite the significant downturn in shares of major tech companies, the stock market concluded the day on a positive note driven by Apple’s strong results.
Stock Index Performance
On Wednesday, the S&P 500 rose by 0.73% to 6,345.06. The Nasdaq climbed 1.21%, reaching 21,169.42. The Dow Jones saw minor movement, increasing by 81.38 points, or 0.18%, to settle at 44,193.12.
AMD and Super Micro Computer Struggles
Shares of Advanced Micro Devices (AMD) fell more than 6% after the company released earnings that fell short of analyst expectations. AMD reported earnings of 48 cents per share, missing the anticipated 49 cents. Additionally, the company did not provide a clear timeline for resuming shipments to China, adding further pressure.
Super Micro Computer (SMCI) faced even steeper losses, with its shares plummeting 18% after missing both revenue and profit estimates for the fourth quarter. Super Micro reported earnings of 41 cents per share, down from the expected 44 cents, while revenue totaled $5.76 billion, also falling short of projections.
Snap's Setbacks and Other Companies' Success
Snap, the parent company of Snapchat, also faced challenges with its stock dropping 18% after reporting second-quarter results. Advertising revenue increased by just 4% year-over-year to $1.17 billion, which was below the $1.22 billion expected by analysts. A technical issue within their ad auction system negatively impacted campaign pricing, leading to investor concerns.
Conversely, companies like McDonald's showed positive performance, with their shares rising nearly 3%. Arista Networks also experienced a strong increase of 17%. Overall, 81% of S&P 500 companies that have reported thus far surpassed Wall Street's expectations, contributing to the market's higher close.
In summary, despite the lackluster results from several major tech companies, the stock market managed to close higher, supported by solid performances from other firms and positive developments in the banking sector.
