The Nasdaq rose 1.05% and the S&P 500 0.58%, the reverse of the previous day's rotation, as money returned to tech. The technology sector (XLK) led at +1.67%, with Nvidia up 2.54%, AMD 3.36% and Micron 1.96%. The trigger was SpaceX's third-quarter report, whose revenue guidance far exceeded expectations and was read as a sign that AI infrastructure demand has not cooled. It is too early to call a trend reversal, though. This could be a technical bounce after the semiconductor index's eight straight losing sessions, and the 10-year yield remains high at 5.15%. Defensives such as staples (-0.73%) and health care (-0.49%) lagged, so risk appetite did improve, but Tesla and Meta report after the close, so we hold off on a directional call and stay neutral.
📊 Top Movers
🧭 Sector Performance
🇰🇷 Korean Investor Perspective
For Korean investors, the rebound matters most in semiconductors. Nvidia rose 2.54%, AMD 3.36%, Micron 1.96%, Broadcom 1.03% and Arm 2.50%, a positive signal for memory and chip names such as Samsung Electronics and SK Hynix. Since this follows eight straight losing sessions for the semiconductor index, it is worth watching whether it lasts. USD/KRW fell 3.37 won to 1,326.63, easing the currency burden slightly. QQQ gained 1.05%, SPY 0.53% and the 3x leveraged TQQQ 3.12%. Unhedged investors should remember that a stronger won trims the won-denominated return on dollar assets, and it is worth reviewing leveraged ETF exposure such as TQQQ ahead of Tesla and Meta earnings after the close.
📊 Market Overview
US stocks closed higher across the board on Wednesday, October 21, with the Nasdaq rising the most. The Dow Jones Industrial Average gained 360.21 points (+0.69%) to 52,856.09, the S&P 500 rose 44.60 points (+0.58%) to 7,757.17, and the Nasdaq Composite added 278.04 points (+1.05%) to 26,702.86. The S&P 500 moved further above 7,700, and the Nasdaq broke upward out of the previous day's flat finish.
If the day before was a rotation from mega-cap tech into health care and defensives, this was the reverse. Of the 11 sectors, technology led at +1.67%, followed by industrials (+0.91%) and financials (+0.57%). Communication services (-1.11%), real estate (-0.76%), consumer staples (-0.73%) and health care (-0.49%) fell. Among related ETFs, QQQ rose 1.05%, SPY 0.53% and the 3x leveraged TQQQ 3.12%. Press reports said futures early in the session pointed to a chip rebound alongside expectations around SpaceX earnings, right after the Philadelphia Semiconductor Index snapped an eight-session losing streak, its longest in 18 years.
🔑 Key Issues
1. SpaceX's third-quarter results, stock +7.79%
SPCX rose $11.52 (+7.79%) to $159.31, and reports said it was up around 10% intraday. Per press reports, third-quarter revenue was $14.6 billion, up 161% from a year earlier, with net income of $4.4 billion. The AI unit's revenue was $7.56 billion, up 830%. First-quarter 2027 revenue guidance of $33–37 billion was far above Wall Street's roughly $23 billion. On the call, Musk said committees have been formed on both boards to discuss a consolidation, and Tesla rose 3.41% the same day. One research firm reportedly flagged a funding gap of about $475 billion, so it was not all optimism.
2. AI and semiconductor rebound
The SpaceX results were read as a sign that AI infrastructure demand is intact, and chips rebounded. AMD rose 3.36% to $552.72, Nvidia 2.54% to $221.97, Arm 2.50%, Micron 1.96%, Intel 1.39%, Qualcomm 1.28% and Broadcom 1.03%. ServiceNow (+2.39%) was also strong. Reports said Super Micro jumped more than 10% after raising its preliminary revenue estimate. Coming right after eight straight losing sessions for the chip index, it also has the character of a technical bounce. Alphabet fell 1.62% and Oracle 1.53%, so AI-linked names were mixed.
3. AT&T down 6.45% despite strong results
AT&T (T) fell 6.45% to $21.91, the worst among the stocks we track. Per press reports, third-quarter adjusted EPS of $0.65 beat the $0.60 forecast, revenue of $32.3 billion topped the $31.69 billion estimate, and the company raised its 2026 adjusted EPS outlook to about $2.40. Even so, postpaid phone net adds of 379,000 missed the roughly 387,000 expected, and about $23 billion of EchoStar-related debt, an impairment tied to the sale of its Mexico business and competition from Starlink weighed. Verizon also fell 2.20%, pressuring telecoms, and communication services was the weakest sector.
4. Financials were strong
Morgan Stanley rose 3.66% to $187.01, the second-best gain, Goldman Sachs gained 2.25% to $904.72 and American Express 1.66%. The financial sector (XLF) rose 0.57%. We found no report explaining the specific cause of the strength, so we assign none.
5. Oil and yields
Yahoo Finance's WTI futures fell 5.74% to $97.71. Some reports said WTI rose 2.2% to $99.95 the same day, which differs, apparently reflecting contract month or timing, so we do not settle on a direction. Iran-related tension around the Strait of Hormuz remains an oil variable. The 10-year yield rose 0.03 percentage points to 5.15%, still a high level.
📊 Sector Performance
| Sector | Change | Main driver |
|---|---|---|
| Technology | +1.67% | SpaceX earnings optimism, Nvidia +2.54%, AMD +3.36% |
| Industrials | +0.91% | Caterpillar +2.06%, 3M +1.97% |
| Financials | +0.57% | Morgan Stanley +3.66%, Goldman Sachs +2.25% |
| Utilities | +0.29% | Small gain, mixed by stock |
| Energy | +0.28% | Chevron +0.47%, Exxon Mobil +0.13% |
| Materials | +0.18% | Roughly flat |
| Consumer Discretionary | +0.03% | Tesla +3.41%, Amazon -0.10% |
| Health Care | -0.49% | Gilead -1.88%, AbbVie -1.48%, Eli Lilly -1.01% |
| Consumer Staples | -0.73% | P&G -1.56%, Coca-Cola -0.87% |
| Real Estate | -0.76% | Rate pressure |
| Communication Services | -1.11% | AT&T -6.45%, Verizon -2.20%, Alphabet -1.62% |
🌍 Global Markets
- Europe STOXX 600: Rose 0.92% to 644.49.
- US Dollar Index (DXY): Fell 0.03% to 101.70, nearly flat.
- US 10-year Treasury yield: Rose 0.03 percentage points to 5.15%.
- WTI crude: $97.71 on Yahoo Finance futures, down 5.74%. Some reports point the other way, so we do not settle on a direction.
- Gold: Down 0.01% to $4,159.5, flat.
🚀 SPCX (SpaceX) Update
SPCX rose 7.79% to $159.31, the best gain among the stocks we track, and reports described it as its best day in about two months. The direct cause was third-quarter results and first-quarter 2027 guidance that far exceeded expectations. Musk's mention of committees to discuss a Tesla consolidation lifted Tesla 3.41% to $386.47. The remark only says discussions are under way and nothing is decided, and concerns about the scale of funding were raised as well.
⚠️ Investor Cautions
Today's gain was a tech rebound but not a confirmed trend reversal. It comes after eight straight losing sessions for the chip index and may be technical, and with the 10-year held high at 5.15% the burden of financing AI investment is unchanged. One company's results, SpaceX's, may also have been over-read as a signal for AI as a whole.
The AT&T case shows that even with strong earnings, a stock can drop sharply if underlying metrics miss expectations. After the close, Tesla, Meta, IBM and Lam Research report, so after-hours volatility may rise. We could not confirm those results in this research. Holders of leveraged ETFs should prepare for gaps. The October 28 FOMC is another big variable.
👁 What to Watch Next
Tomorrow (Thursday, October 22) hinges on the market's reaction to after-the-close earnings.
- A push toward S&P 500 7,800: From the 7,757.17 close, 7,800 is about 0.5% away. Holding there would recover most of last week's drop. A slide below 7,700 would signal the gain was a one-off.
- Holding Nasdaq 26,700: The close was 26,702.86, so whether it holds this line is the first test.
- Dow 53,000: From the 52,856.09 close it needs about 0.3% more to clear 53,000.
- After-hours reaction to Tesla, Meta, IBM and Lam Research: The scale of AI spending and how it will be monetized is the key, and a miss could quickly reverse today's tech rebound.
- Weekly initial jobless claims: Forecast 200K, prior 199K. Labor data affect the rate outlook.
- Pre-market earnings: Honeywell and P&G report. P&G was already weak today at -1.56%.
💡 Upcoming Events
- 2026-10-22: Honeywell and P&G earnings; weekly initial jobless claims (forecast 200K, prior 199K)
- 2026-10-23: American Express earnings; S&P Global flash services PMI (forecast 57.9, prior 58.8)
- 2026-10-28: FOMC rate decision
📚 Sources
- Stock market today: Dow, S&P 500, Nasdaq rise as tech rallies, SpaceX stock surges nearly 8% — Yahoo Finance
- SpaceX stock jumps 10% after earnings beat and Musk hints at Tesla tie-up — CNBC
- Why Is AT&T Stock Falling Wednesday? — Benzinga
- Earnings call transcript: AT&T beats Q3 2026 estimates as stock falls premarket — Investing.com
- SpaceX Jumps 10%, Nasdaq 100 Rises As AI Trade Returns — Benzinga