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Markets·Wednesday, Oct. 21·After the close

Tech leads stocks higher on SpaceX results

Stocks rose Wednesday as SpaceX's strong quarter calmed worries about the AI boom, and Tesla jumped on talk of a merger with SpaceX.

Written and checked by software

The story

SpaceX had a blowout quarter, and that eased fears that the AI spending boom can't last, Yahoo Finance reported. Chip and cloud companies got the lift. Nvidia rose about 2.5%, and the Nasdaq finished up about 1%. The S&P 500 gained about 0.6%.

Tesla was the biggest mover on the board, up about 3.4%. Bloomberg reported that Elon Musk backed combining SpaceX and Tesla, and that the boards are studying a possible $3.5 trillion deal. Investors also seem to have been hopeful ahead of Tesla's earnings, which came after the closing bell. Any moves after the close aren't part of today's numbers. SpaceX's bonds weakened on worries about its borrowing, even as the stock rallied.

Reports that the war in the Middle East is heating up pushed oil higher and bond prices lower, Bloomberg reported. That likely helped nudge the interest rate on the 10-year Treasury up to around 5.15%. Heating oil went the other way, down about 2.4%. That's a small break for Maine homes heading into heating season, though diesel-type fuels are still pricey.

Also today

  • Hong Kong stocks fell about 2.2% as the Hang Seng Tech index slid below 4,000, its lowest since October 2024, Yahoo Finance reported.
  • Meta rose even after a $25 billion penalty in New Mexico over the Cambridge Analytica case, CNBC reported, but the communications sector still fell, led by Alphabet.
  • Natural gas fell sharply. No news explains it, so it probably reflects milder weather outlooks or storage numbers.

Storylines

  • AI trade: SpaceX's results revived it, and chip stocks led the way.
  • Musk empire and a SpaceX-Tesla merger: Musk openly backs a combination, and Tesla's earnings came after the close.
  • Middle East war and energy: Escalation reports lifted global oil prices, and the gap between global and U.S. oil is unusually wide.
  • High long-term rates: The 10-year sits near 5.15% and the 30-year near 5.44%, and France's 10-year hit 5%.

Temperature

Warm ยท upbeat: Most stocks rose (22 of 30 on our board), the market's fear gauge eased under 17, and the S&P 500 sits about 1% below its high.

Where this came from

Written by software from that day's market data and the headlines cited below, checked against the numbers by code, and published without a person's review. Nothing here is advice.