Stocks closed mixed on Wednesday, with tech stocks leading the way as the S&P 500 achieved yet another record close, marking its fourth consecutive high. The Nasdaq Composite also saw gains, although they moderated to close up approximately 0.4%.

Strong earnings fueled the positive sentiment, with Netflix leading the way and buoying the index. Other tech giants such as Microsoft and Meta also saw gains. The S&P 500 closed flat but still reached a fresh closing high, while the Dow Jones Industrial Average declined by approximately 0.3%.

Meanwhile, chip gear maker ASML and software maker SAP provided blowout updates, lifting optimism for a revival in the chip industry and an AI-fueled boom in technology. However, Tesla, one of the standout performers in corporate reports, posted an earnings miss as the electric vehicle maker faces challenges in the Chinese market.

In other news, IBM reported a 4% rise in revenue, driven by strong demand for artificial intelligence. Data-driven expectations were met with strong updates on US manufacturing and services activity, indicating economic output at its highest levels in seven months.

Tesla's stock dropped approximately 4% in after-hours trading as its earnings disappointed investors. The company issued a downbeat production outlook for the year, signaling that its growth rate may be lower than expected. This sent shares down in after-hours trading.

Despite concerns over buying stocks at all-time highs, historical data shows that investing at record levels often leads to better performance over the next five years. Creative Planning CEO Peter Mallouk pointed out that the market generally goes up, with periodic downturns, highlighting the importance of deploying capital rather than staying on the sidelines.

In afternoon trading, several tech stocks were trending on the Yahoo Finance homepage. Nvidia shares climbed 4% as the AI-fueled rally continued, while Netflix experienced a surge in its stock price after reporting strong subscriber additions. AMD and Microsoft also saw positive momentum in their stock prices.

The Nasdaq Composite led mid-afternoon gains, soaring approximately 1.2%, with strong performances from Meta, Microsoft, and Google, contributing to the AI-fueled rally. The S&P 500 and the Dow Jones Industrial Average also experienced gains.

Furthermore, US economic output reached a seven-month high in January, indicating growth in both the manufacturing and services sectors. The flash US composite PMI, which captures activity in these sectors, surpassed expectations, with business confidence reaching a 20-month high.

Looking ahead, investors can anticipate more corporate earnings reports this week, with 74 companies representing 15% of the S&P 500 reporting their results. According to Fundstrat, the majority of firms are beating estimates by a median of 7%. Tesla's earnings report is eagerly awaited, while Dutch chipmaker ASML reported a significant increase in orders, providing a positive outlook for the semiconductor industry.

With the S&P 500 heading towards another record high close, investors remain optimistic about the performance of tech stocks and the overall market.