Seagate Stock Surges; Supermicro Falls After Soft Earnings Report

Shares of a data storage provider pushed higher after the company announced a deal to exchange debt for cash and shares. Meanwhile, an artificial intelligence (AI) server maker came under pressure after posting lackluster earnings results.

Major U.S. equities indexes gained ground after the latest ADP payrolls data showed a return to private-sector jobs growth in October following several months of declines. The private payroll report is in the spotlight as official government data releases remain suspended during the government shutdown, which on Wednesday entered a record-breaking 36th day.

The S&P 500 added 0.4% Wednesday. The Dow advanced 0.5%, while the tech-heavy Nasdaq powered 0.7% higher. All three market gauges bounced back from losses posted in the prior session. Read more in Investopedia’s daily market recap.

Seagate Technology (STX) shares surged 10.1% after the maker of solid-state drives and other data storage systems announced a deal with lenders to exchange $500 million in debt for cash and stock. Data storage companies have benefited from strong demand related to the buildout of AI infrastructure. Shares of Seagate’s rival Western Digital (WDC) gained 5.2%.

Other AI-exposed stocks enjoyed solid gains Wednesday, many of them bouncing back from losses posted in the prior session amid concerns about elevated valuations. Shares of memory chipmaker Micron Technology (MU) gained 8.9%, clawing back the previous day’s steep decline.

Johnson Controls (JCI), a provider of smart building technologies, reported better-than-expected revenue and adjusted earnings per share for the third quarter. Growth in Europe, the Middle East, Africa, and the Americas helped offset pressure in the Asia-Pacific business, which was impacted by lower volumes in China. Johnson Controls shares jumped 8.8%.

Shares of medical device maker Zimmer Biomet Holdings (ZBH) plunged 15.2%, losing the most of any stock in the S&P 500. The maker of hip and knee replacements missed quarterly sales forecasts and lowered its outlook for 2025 organic sales growth, citing softness in Latin America, European emerging markets, and noncore businesses.

Super Micro Computer (SMCI) fell short of sales and adjusted profit estimates for its fiscal first quarter, and shares of the AI server maker dropped 11.3%. The company said part of the shortfall related to a change in delivery schedules for major AI deals, which resulted in revenue being pushed back into the following quarter.

Live Nation Entertainment (LYV) shares tumbled 10.6% after the Ticketmaster parent reported lower-than-expected adjusted profit for the third quarter. Although revenue rose year-over-year, boosted by strong spending on live events, higher direct operating costs weighed on profitability.