Nasdaq rises 0.9% as tech shares gain ahead of Meta, Tesla earnings
Key Facts
The Nasdaq Composite led gains in U.S. stocks on Wednesday, October 21, 2026, rising 0.9% with an hour of trading remaining, according to the Associated Press, as investors awaited earnings from Meta and Tesla. The S&P 500 rose 0.4% alongside broader gains in technology shares during the session. Tesla was among the stocks providing the strongest support to the market, climbing 3.3% ahead of its anticipated results. The Nasdaq's advance followed a decline of less than 0.1% on Tuesday, when shares including Apple and Meta weighed on the index. The index had risen 1.1% on Monday, when technology shares led a recovery following the previous week's losses.
Super Micro buoyed sentiment toward AI stocks after forecasting revenue above its previous estimates, according to the Associated Press. The company attributed its raised outlook to "increased demand for AI platforms," indicating strong demand for infrastructure supporting the technology. Its shares rose 8.5% following the update, while Nvidia gained 1.9% and was the biggest contributor to the S&P 500's advance in the session update. Netflix shares, by contrast, fell 4.9% despite the company's earnings beating analysts' expectations. Investors trading the stock focused on its weak revenue growth outlook, according to the agency.
Meta heads into its earnings announcement after reporting second-quarter revenue of $60.80 billion, according to its earnings release filed with the U.S. Securities and Exchange Commission. That represented a year-on-year increase of 28% in the company's revenue during the period. But its operating margin fell to 31%, alongside the revenue growth the company reported in its previous release. The margin had stood at 43% in the corresponding period a year earlier, showing a decline in operating profitability relative to revenue. Following the release of those results on July 29, 2026, Meta shares fell 4.2% in after-hours trading, according to the Associated Press.
Tesla, meanwhile, reported production of 464,391 vehicles in the third quarter of 2026 in its operational update. Deliveries during the same period totaled 486,532 vehicles, according to figures the company published on its investor relations website. By comparison, it had produced about 451,758 vehicles in the second quarter, putting third-quarter production above the previous period's level. Deliveries also increased from the second quarter, when the company delivered 480,126 vehicles, according to its release for that period. In its energy storage business, Tesla reported deploying products with a capacity of 13.7 gigawatt-hours during the third quarter.
On profitability expectations, the average analyst estimate compiled by Tesla for its third-quarter gross margin was 17.9%. Their average estimate for earnings per share under U.S. accounting standards was $0.23, according to the company's compilation published on its investor relations website. The average estimate for adjusted earnings per share was $0.45 for the same period. Meta had forecast third-quarter revenue in a range of $61–64 billion in its previous earnings release. Its outlook for 2026 included capital expenditure of between $130 billion and $145 billion, including principal payments on finance lease obligations.
Tesla scheduled its third-quarter results for after the market close on Wednesday, October 21, 2026, according to a company release. Meta will report its results after the market close on the same day, according to Reuters, putting both companies' disclosures after the end of trading. The agency said investors were looking to the results for confirmation of continued strength in AI-related spending. Tesla's earnings webcast is scheduled to begin at 5:30 p.m. Eastern Time on the day of the announcement. The webcast includes a question-and-answer session with company management, according to the schedule and details published on its investor relations website.