Key Highlights

● Equinix raised its 2026 revenue guidance.

● Real estate was one of the weakest S&P 500 sectors that day.

● Rising Treasury yields pressured REITs broadly.

● Equinix operates data centers used for AI infrastructure.

Equinix shares crept higher in extended trading on Wednesday, October 28, after the data-center operator lifted its revenue outlook for 2026.

Equinix (NASDAQ:EQIX) edged higher after the closing bell after the data-center real estate investment trust raised its 2026 revenue guidance, according to a closing recap. The move was modest, but it offered a lift to an S&P 500 member whose sector had a rough regular session.

Data Centers in Demand

Equinix owns and operates data centers around the world where companies, cloud providers and network operators place their servers and connect to one another. Its business sits squarely in the path of rising demand for computing power, including the build-out of artificial intelligence infrastructure.

Raising revenue guidance signals that demand for space, power and interconnection in its facilities remains healthy. The AI infrastructure trade was in full swing on Wednesday, with Vertiv (NYSE:VRT), which supplies power and cooling equipment for data centers, rocketing after its organic orders more than doubled.

Real Estate Lagged

Equinix's after-hours gain came after a difficult day for real estate stocks. The real estate sector was one of the weakest in the S&P 500 during the regular session, along with utilities and consumer staples.

The reason was rising yields. Long-dated Treasury yields climbed, with the 10-year pushing past a key psychological threshold, its largest daily gain since late September. REITs are often seen as bond-like investments because they pay out much of their income as dividends, so higher yields on safer government debt tend to make them less attractive by comparison.

The Fed's Message

The Federal Reserve left its benchmark rate range unchanged on Wednesday in a 10-2 vote. Fed Chair Kevin Warsh said higher rates have affected the AI infrastructure build-out and that some credit spreads have widened. On capital spending, he said it was not just strong but broadening.

The S&P 500 closed at 7,743.98, up 21.38 points, for a third straight gain. After the bell, Microsoft (NASDAQ:MSFT) rose after its Azure cloud business accelerated, a positive sign for data-center demand, while Alphabet (NASDAQ:GOOGL) slid after missing estimates, even as it raised its 2026 capital spending forecast.

What to Watch

Investors will look for Equinix's commentary on bookings, pricing, power availability and the share of demand coming from AI customers. The company's financing costs will also be in focus with long-term yields climbing.

Thursday, October 29, brings the advance estimate of third-quarter GDP and September PCE inflation data at 8:30 a.m. ET, which could move Treasury yields and, with them, REIT shares. Amazon (NASDAQ:AMZN), the largest cloud provider, reports after the close.