Nasdaq Jumps 1.05% as SpaceX and Super Micro Revive the AI Trade While Netflix and AT&T Slide
Tech led Wall Street higher on Wednesday after SpaceX posted its first public-company profit and Super Micro lifted its forecast, with Tesla and Meta still to report after the bell.
Thursday, October 22, 2026/2 min read
Two earnings reports were enough to change the mood on Wall Street on Wednesday. The Nasdaq Composite rose 1.05 percent to about 26,700, the S&P 500 gained 0.58 percent to about 7,757 and the Dow added roughly 0.7 percent to about 52,850, according to preliminary Reuters figures carried by The Standard.
The rebound extends the one we described after Tuesday's session, and it came after a week in which AI stocks had been hit hard.
Why did AI stocks rally on Wednesday?
SpaceX shares rose about 7.8 percent after the company reported its first profit as a public company. Yahoo Finance's live coverage put its third-quarter revenue at $14.6 billion, with the AI segment bringing in $7.6 billion, more than half the total. Elon Musk also said SpaceX and Tesla have each formed special committees to study a merger, a step covered in our earlier report.
Super Micro Computer jumped as much as 12 percent after it raised its fiscal first-quarter revenue forecast to a range of $18.5 billion to $19.5 billion, from $14.5 billion to $15.5 billion, Yahoo Finance reported. Dell rose about 5 percent and Hewlett Packard Enterprise about 4 percent. Edward Jones strategist Angelo Kourkafas called the results "a good start" on answering questions about AI returns, though one strategist said those questions remain unresolved.
Which stocks fell?
Netflix dropped roughly 4 to 5 percent after a fourth-quarter revenue forecast of $13.44 billion, short of the $13.51 billion consensus, and a cut to its 2026 advertising guidance from $3 billion to $2.7 billion. We covered those results in our Netflix report. AT&T fell about 6 percent after adding 379,000 net postpaid phone customers, below the 387,410 analysts expected, and its chief executive downplayed the threat from Starlink mobile plans. Alphabet and Abbott Laboratories also declined, the latter after cutting its 2026 sales growth forecast.
What is happening with oil and crypto stocks?
Oil rose after the attack on a Saudi Aramco field, with Brent trading near $110 a barrel, but stocks barely reacted, Yahoo Finance said. Crypto-linked shares gained after a federal bank regulator finalised stablecoin rules, with Circle and Coinbase each up more than 4 percent.
What comes next for the market?
Tesla and Meta reported after the close, starting Big Tech's earnings season. Yahoo Finance's calendar also flagged Thursday as the day up to 1.3 billion SpaceX shares unlock, the largest release yet, and Super Micro's full results are due on 3 November. With the 10-year Treasury yield still above 5 percent and oil near $110, Wednesday's rally rests on earnings rather than on a shift in the macro backdrop, and Thursday's SpaceX unlock is the first test of whether it holds.
Published in The Outspoken Digest
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