By William Collins, consultant in stock markets – Eurasia Business News, October 21, 2026. Article no 3217
U.S. stocks rose on Wednesday, October 21, as encouraging results from SpaceX and Super Micro Computer restored confidence in the artificial-intelligence trade.
The Nasdaq Composite climbed approximately 1%, while the S&P 500 gained nearly 0.6% and the Dow Jones Industrial Average advanced 0.7%, according to the supplied closing figures.
The technology-led recovery followed days of concern about AI spending, corporate borrowing and valuations. Wednesday’s reports gave investors evidence that demand for computing infrastructure remained strong. However, enthusiasm about a potential SpaceX–Tesla merger introduced a separate source of speculation, with no agreement yet announced.
Dow, S&P 500 and Nasdaq Finish Higher
All three major U.S. benchmarks advanced, with technology providing the strongest support. The Nasdaq had gained approximately 1.28% at 2:21 p.m. Eastern time, before finishing around 1% higher in the supplied closing report.
| U.S. stock index | October 21 performance |
|---|---|
| Dow Jones Industrial Average | Approximately +0.7% |
| S&P 500 | Almost +0.6% |
| Nasdaq Composite | Approximately +1.0% |
The distinction between intraday and closing figures matters in a volatile market. Wednesday’s gains showed renewed appetite for growth stocks, but they did not establish that investors’ concerns about financing costs and investment returns had disappeared.
Instead, the session illustrated how company-specific results can temporarily shift sentiment across an interconnected sector.
SpaceX Earnings Give AI Stocks a Boost
SpaceX reported its first profit as a public company, helping lift its shares and improving sentiment toward other AI-linked businesses. Reuters reported that the stock was approximately 7% higher during afternoon trading, after gaining more earlier in the session.
The company’s results attracted attention beyond its traditional aerospace operations. Investors were looking for evidence that AI-related revenue could support the capital-intensive expansion underlying the broader investment cycle. Strong earnings therefore provided a counterweight to recent fears that spending was running ahead of commercial returns.
SpaceX’s performance also influenced Tesla, whose shares gained approximately 3.5% during reported afternoon trading as investors assessed Elon Musk’s comments about combining the businesses. That regular-session move should be distinguished from Tesla’s subsequent after-hours reaction to its own results.
Potential SpaceX–Tesla Merger Fuels Speculation
Musk said a merger between SpaceX and Tesla “would be a good idea.” According to The Wall Street Journal, he linked the proposed combination to the companies’ shared pursuit of advanced artificial intelligence, which he described as “super intelligence.”
Both companies had established independent special committees to evaluate a possible transaction, according to market reporting. Crucially, no agreement had been reached, and a deal was not guaranteed.
Investors therefore face two distinct questions: whether combining the businesses would create operational advantages, and whether any eventual transaction would offer acceptable terms to shareholders. Merger speculation can support short-term prices without answering either question.
Super Micro Raises Revenue Expectations
Super Micro Computer provided another major catalyst. The AI-server manufacturer raised preliminary fiscal first-quarter revenue expectations to between $18.5 billion and $19.5 billion, compared with previous guidance of $14.5 billion to $15.5 billion.
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The company also forecast gross margins of 12%–12.5%, above its previous 10.4%–10.8% range. Its shares rose more than 9% during afternoon trading, placing it among the S&P 500’s strongest performers.
The margin improvement was particularly significant. Revenue growth demonstrates demand, but stronger margins offer evidence about how effectively a supplier can convert that demand into profits. Investors concerned about the economics of AI infrastructure welcomed both signals.
Tesla Reports Nearly Flat Quarterly Sales
After the closing bell, Tesla reported third-quarter revenue of $28.05 billion, compared with $28.1 billion a year earlier, according to the supplied earnings figures. Analysts had expected $28.06 billion, based on FactSet estimates.
The result was effectively flat year over year and narrowly below consensus. Tesla shares nevertheless rose approximately 1% in the reported after-hours snapshot. That reaction was preliminary, not a closing price or proof that investors had resolved questions about future growth.
Brent and WTI Oil Prices Diverge
Oil finished mixed. Brent crude settled three cents higher at $108.82 per barrel, while the December WTI contract fell 67 cents to $97.15.
The contract distinction matters when comparing benchmarks. These settlement prices describe specific futures instruments, not a universal cash price for oil.
Gold and Silver Prices According to Kitco
Market morning report quoted spot gold near $4,136.70 per troy ounce, up $12.60, or 0.31%. Spot silver traded around $57.51, down $0.37, or 0.64%. These were morning readings, not daily settlements.
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Lower Treasury yields and defensive demand supported gold, while uncertainty about industrial activity weighed on silver. The metals’ divergence underscored Wednesday’s central theme: improving technology sentiment did not eliminate broader economic risks. The next test is execution—whether companies can sustain profitable growth as investment requirements remain substantial.
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© Copyright 2026 – Eurasia Business News. Article no. 3217
