The tech-heavy Nasdaq led Wall Street to a higher close on Wednesday, October 21, 2026, following quarterly earnings reports from SpaceX and Super Micro Computer. The results improved investor appetite for stocks related to artificial intelligence (AI), though gains were tempered by declines in the communication services sector. The Nasdaq Composite gained 278.04 points, or 1.05%, to 26,702.86, while the S&P 500 rose 0.58% to 7,757.17 and the Dow Jones Industrial Average finished up 0.69% at 52,856.09.
The market movement followed a period of volatility in the technology sector. Last week, AI-linked stocks experienced a selloff centered on data center operator CoreWeave, leading to investor concerns regarding the sustainability of large-scale spending on AI infrastructure. The Philadelphia Semiconductor index had also experienced an eight-session selloff earlier in the month.
SpaceX shares finished the regular session up 7.8% after the rocket and space technology firm reported its first profit since becoming a public company. Following the report, Elon Musk stated that a merger between SpaceX and Tesla would be "a good idea," which contributed to a 3.4% rise in Tesla shares during regular trading. Super Micro Computer shares jumped 9.6% after the company forecast quarterly revenue and profit margins that exceeded Wall Street estimates, which also lifted shares of peers HPE and Dell by 3.7% and 5.3%, respectively.
The 1.6% rise in the S&P 500 Information Technology index directly impacts shareholders in companies across the AI ecosystem. Conversely, a 1.3% decline in communication services affected investors in AT&T, which saw its share price drop 6.5% despite beating its own revenue and profit estimates.
Netflix shares fell 5.3% following a weak fourth-quarter profit forecast. Additionally, investors in telecom staples like T-Mobile US and Verizon, which fell 2.5% and 2.2% respectively, saw their holdings decrease as analysts fanned fears that SpaceX could become a more formidable competitor in the wireless market following a recent spectrum purchase.
Meta and Tesla both released quarterly results after the close of the regular session on October 21, with Meta shares rising 3% and Tesla shares gaining an additional 1.6% in late trading. Investors continue to monitor reports to determine if the demand for artificial intelligence infrastructure remains resilient.