Tech Earnings Lift Markets as Meta Soars and Tesla Dips 22/10/2026
Market Wrap
U.S. stocks advanced Wednesday as renewed enthusiasm surrounding SpaceX and Tesla helped lift technology shares, pushing all three major indexes higher ahead of another round of corporate earnings.
The Nasdaq Composite gained 1.05% to close at 26,702.86, while the S&P 500 rose 0.58% to 7,757.17. The Dow Jones Industrial Average climbed 360.21 points, or 0.69%, to finish at 52,856.09.
SpaceX (SPCX) surged 7% after reporting a 161% increase in third-quarter revenue. Investor optimism strengthened after Elon Musk confirmed that SpaceX and Tesla (TSLA) had established independent committees to explore a potential merger. Tesla shares advanced more than 3% ahead of its quarterly earnings release.
Netflix (NFLX), meanwhile, fell more than 5% after the streaming company issued a full-year revenue forecast below Wall Street expectations and lowered its advertising revenue outlook, highlighting growing scrutiny of corporate growth projections.
Artificial intelligence remained a central market theme as Nvidia (NVDA) announced plans to expand its global manufacturing capacity through agreements with supply chain partners. The initiative aims to support accelerating demand for AI infrastructure and advanced computing systems.
However, market sentiment weakened overnight, with U.S. equity futures declining early Thursday as investors assessed quarterly results from major technology companies, including Meta Platforms (META) and Tesla (TSLA).
Attention now shifts to another busy earnings session, with Procter & Gamble (PG), Lockheed Martin (LMT), Valero Energy (VLO) and Honeywell (HON) scheduled to report Thursday.
On the economic front, weekly initial jobless claims will provide fresh insight into labor market conditions as investors continue evaluating the outlook for Federal Reserve policy.
With technology earnings driving market direction and AI investment remaining under scrutiny, traders will be watching whether corporate results can sustain Wall Street's recent recovery.
Meta Gains on AI Optimism as Tesla Falls on Merger Uncertainty
Meta Platforms (META) and Tesla (TSLA) moved in opposite directions in after-hours trading Wednesday as investors weighed strong AI-driven growth against uncertainty surrounding a potential SpaceX merger.
Meta shares gained approximately 2% after initially jumping more than 4%, following third-quarter revenue growth of 26% to $64.6 billion. AI-powered recommendation systems and higher advertising prices helped drive the strong performance.
CEO Mark Zuckerberg highlighted the potential of Meta's Muse AI assistant, suggesting it could eventually generate more revenue per user than Facebook or Instagram through subscriptions, advertising and e-commerce. More than 25% of Muse users already use the assistant for shopping, with average purchases exceeding $200.
Meta forecast fourth-quarter revenue of $73 billion to $76 billion, although its aggressive AI spending remains under scrutiny. The company expects capital expenditures of $135 billion to $145 billion in 2026, with heavy infrastructure investment pushing quarterly free cash flow into negative territory.
Meanwhile, Tesla shares declined in extended trading after management refused to address questions about a potential merger with SpaceX (SPCX) during its earnings call.
Tesla had gained 3.4% during Wednesday's regular session following confirmation that independent committees were exploring a combination. However, Musk cautioned that discussions remain preliminary and no agreement is guaranteed.
Despite the uncertainty, CFRA analyst Garrett Nelson expects a merger could take place by the end of 2027, citing increasing cooperation between the companies.
The contrasting reactions highlight investors' growing focus on AI monetization, capital spending and strategic execution as technology earnings season accelerates.
Stocks on the Move
- CSX (CSX): Shares climbed 4% after the railroad operator reported better-than-expected third-quarter results. Earnings reached $0.57 per share on revenue of $4.02 billion, exceeding analysts' forecasts of $0.53 per share and $3.96 billion. Revenue per unit increased 7%, ahead of expectations.
- Las Vegas Sands (LVS): Shares declined 2% after the casino and resort operator missed third-quarter expectations, reporting adjusted earnings of $0.54 per share on revenue of $3.22 billion, below estimates of $0.69 per share and $3.35 billion.
- Lam Research (LRCX): Shares dropped more than 5% after the semiconductor equipment manufacturer issued second-quarter guidance of $2.33 in adjusted earnings per share, plus or minus $0.15, on revenue of $8.60 billion, plus or minus $400 million. Analysts had expected $2.31 per share on revenue of $8.53 billion.
- SAP (SAP): Shares advanced 4% after the enterprise software company reported third-quarter earnings and revenue that exceeded Wall Street expectations.
- QuantumScape (QS): Shares surged more than 9% after the solid-state battery developer announced plans for a 100-megawatt-hour production line targeting energy storage applications for AI data centers.
Watchlist: INTC, CRWV, MU, TSLA, SPCX, MSTR, SAP, QS, LRCX, LVS, CSX, PG, UNP, LMT, VLO, SPOT, CMCSA, IBM
Key Economic Events Today
Economic Data (EST)
- 08:30 AM — USD Unemployment Claims
- 10:00 AM — USD CB Leading Index
Earnings
Before Market Open: Procter & Gamble (PG), Union Pacific Corp. (UNP), Lockheed Martin (LMT), Valero Energy (VLO), Spotify (SPOT), Blackstone (BX), Comcast Corp. (CMCSA)
After Market Close: Western Digital (WDC), Newmont Corp. (NEM)
