Nasdaq rises 0.67% at open as AI company earnings lift sentiment
Key Facts
Major U.S. indexes opened higher on October 21, 2026, led by the Nasdaq Composite, which rose 0.67%, according to Reuters, as appetite for artificial intelligence stocks improved. The index added 176.9 points at the start of trading, posting the largest percentage gain among the major indexes. The S&P 500 rose 23.9 points, or 0.31%, with the broader benchmark joining the opening gains. The Dow Jones Industrial Average climbed 157.0 points, or 0.30%, rounding out gains across the major indexes. Reuters attributed improved investor appetite for AI stocks to quarterly results from SpaceX and Super Micro Computer.
In corporate earnings details, Super Micro Computer said its expected revenue would exceed its previously issued guidance, according to the Associated Press. The company attributed the improvement to "increased demand for AI platforms," a message supporting appetite for stocks tied to those activities. Netflix's outlook, by contrast, was less positive than its reported earnings. The company's quarterly profit exceeded analysts' expectations, according to the agency. But its forecast for revenue growth in the final quarter fell short of their estimates, combining an earnings beat with weaker sales growth guidance.
These developments follow strong growth in Meta's business in the second quarter of 2026, when revenue reached $60.8 billion, according to Investing.com. That represented a year-on-year increase of 28%. For the third quarter, the company forecast revenue of between $61 billion and $64 billion, according to its previous quarter's earnings disclosure filed with the U.S. Securities and Exchange Commission. The entire guidance range is above the revenue level recorded in the second quarter. Mark Zuckerberg said in that earnings statement that "AI is already accelerating growth in our core business," linking the technology to the performance of the company's existing operations.
On spending, Meta narrowed its 2026 capital expenditure guidance, including principal payments on finance leases, to $130–145 billion. The previous range was $125–145 billion, according to the company's disclosure, raising the lower end while leaving the upper end unchanged. Second-quarter free cash flow was $784 million, according to Reuters' report on earnings for that period. That compared with free cash flow of $8.55 billion in the corresponding quarter a year earlier. Following the second-quarter earnings announcement, Meta shares fell 10% in extended trading, according to the agency's report published on July 29, 2026.
Tesla, meanwhile, reported production of 464,391 vehicles in the third quarter of 2026, according to its investor statement on production and deliveries. Deliveries during the same period totaled 486,532 vehicles, exceeding the number produced in the quarter. In its energy business, the company deployed 13.7 gigawatt-hours of energy storage products during the period. In financial estimates Tesla compiled from analysts, the average forecast for earnings per share under U.S. generally accepted accounting principles was $0.23. The average forecast for adjusted earnings per share was $0.45, separate from the estimates prepared under those standards. The average estimate for the third-quarter gross profit margin was 17.9%, according to the analyst expectations table published by the company.
Tesla's webcast discussing results and its outlook begins on October 21, 2026, at 5:30 p.m. U.S. Eastern time, according to the schedule announced to investors. The next U.S. initial jobless claims release is due the following day, October 22, 2026, according to Investing.com's economic calendar. The listed forecast is 200 thousand claims, compared with a previous reading of 199 thousand. Claims rose to 199,000 in the week ended October 10, according to the Associated Press. That represented an increase of 1,000 claims from the previous week, providing the weekly backdrop ahead of the new labor market data release.