Strong earnings lift major indexes
United States stocks rose Wednesday after several large companies reported stronger profits than analysts expected. The S&P 500 gained 0.6% and moved within 0.8% of its record high. Meanwhile, the Dow Jones Industrial Average advanced 360 points, or 0.7%, and the Nasdaq composite climbed 1.1%.
SpaceX led the market with a 7.8% gain after releasing a better-than-expected summer profit. Elon Musk also said the company had taken a step toward considering a possible merger with Tesla. Tesla rose 3.4%, while Capital One Financial gained 2.5% and Winnebago Industries jumped 10.7%.
AI shares remain unsettled
Technology stocks continued to move sharply because higher borrowing costs could slow construction of data centers. CoreWeave shifted between gains and losses before ending 0.5% lower. However, Nvidia rose 2.5% and provided the strongest upward force for the S&P 500.
Super Micro Computer rallied 9.5% after raising its summer revenue forecast because of increased demand for AI platforms. Other earnings reports received weaker reactions. Netflix fell 5.3% as investors focused on a disappointing revenue-growth forecast, while AT&T dropped 6.4% after issuing cautious guidance.
Rates and oil keep investors cautious
High inflation, elevated interest rates and fuel costs remained challenges for companies and consumers. The 10-year Treasury yield returned to 5.12% after erasing an early decline. Brent crude fluctuated between $108 and $111 before settling at $108.82 per barrel.
Oil prices have moved between $97 and $112 during October amid uncertainty surrounding the war with Iran. Abroad, European markets advanced after a mixed session in Asia. South Korea’s Kospi gained 3.3% as artificial intelligence stocks recovered strength. Overall, strong earnings supported Wall Street despite continuing pressure from borrowing costs and energy markets.
References
Choe, S. (2026, October 21). A strong profit report from SpaceX helps lift tech stocks and Wall Street. AP News. https://apnews.com/article/stocks-markets-rates-oil-earnings-ai-4fa93685cd49e51e7ff0d840fdd38b0d