Equity Movement Overview
The Nasdaq Composite closed at 26,702.86 on 21 October 2026, up 1.05%, as quarterly results from SpaceX and Super Micro Computer revived appetite for AI-linked stocks. That level is as of 04:00 UTC+8 on 22 October 2026, the close of US trading. The S&P 500 gained 0.6%, with technology leading and communication services lagging.
Key Driver Behind The Move
SpaceX shares rose 7.79% after the rocket and space technology firm posted its first profit as a public company. Elon Musk also said a merger of SpaceX and Tesla would be “a good idea”, and Tesla shares ended higher.
Super Micro Computer rallied after the AI server maker reported quarterly revenue and profit margin above Wall Street estimates. The results signalled that AI demand remained resilient. Peers Hewlett Packard Enterprise and Dell also advanced.
Market Data And Reaction
Investors drew comfort from the reports after concerns about the profitability of the AI buildout weighed on AI-linked stocks last week. Data centre operator CoreWeave, which has been at the centre of those concerns, finished little changed, suggesting some caution lingered.
Mark Hackett, chief market strategist at Nationwide, said stress in credit markets was keeping a lid on technology breakouts. He added that “the skepticism is very high right now” over the sustainability of the buildout. Chip stocks rebounded, lifting the Philadelphia semiconductor index after a prolonged losing streak this month.
Netflix fell after issuing a weaker-than-expected forecast, and AT&T declined despite beating quarterly estimates.
Broader Market Implications
Investors are scrutinising whether AI spending is sustainable and how rising oil prices could affect corporate earnings. Oil prices remained elevated, and inflation data last week showed price pressures had broadened beyond energy products, supporting the case for another Federal Reserve rate hike. Markets nonetheless largely expect the central bank to hold.
After the close, Tesla and Meta Platforms reported results. Nasdaq-100 futures pointed lower in early Asian trade on 22 October as the megacap earnings failed to reassure investors on the durability of the AI rebound.
What Equity Traders Should Watch
- How the Nasdaq reacts to the Tesla and Meta results when US cash trading resumes.
- Technology earnings due next week, which Hackett said many investors are waiting on before committing.
- Oil prices and inflation data, which feed into Federal Reserve rate expectations.
