US Stock Market: Dow Jones, Nasdaq, S&P 500 Climb Almost 1% Driven By Space, Chip Stocks; Wall Street Outlook

The US stock market witnessed a healthy buying trend overnight due to a bull run in space stocks and chipmakers. The Dow Jones and Nasdaq Composite gained as much as 1%. Amidst Q3 earnings of mega giants, investors will continue to focus on playout of AI infrastructure spending by space, tech and chipmaking companies. SpaceX earnings, along with Elon Musk's remarks over the merger with Tesla, fuelled investors' sentiment. Going ahead, focus will be on the upcoming US Federal Reserve's monetary policy.

US Stock Market Performance

The Dow Jones gained by 360.21 points or 0.7% to end at 52,856.09, while the Nasdaq Composite index soared by 278.04 points or 1.05% to close at 26,702.86. S&P 500 also edged higher by 44.60 points or 0.6% to end at 7,757.17.

The upbeat earnings of SpaceX and Super Micro Computer restored investors' optimism over AI demand ahead.

SpaceX stock gained by more than 12% after a strong earnings report before correcting at closing bell. This rocket stock rallied 8%. Another key factor to boost the stock is Elon Musk's remarks over merging SpaceX and Tesla to be a "good idea".

Following this, major space and machine stocks rallied on Wednesday. Rocket Lab jumped 5.4%, Planet Labs soared over 2.3% and Intuitive Machines climbed about 3.5%. Meanwhile, Super Micro gained by 9.5% after strong quarterly outlook, which further added bullish tone in stocks like HPE and DELL which rallied by over 3.7% and 5.3%.

Chipmaker stocks were also among top gainers. Nvidia jumped 2.5%, Intel soared 1.3% and AMD advanced by 3.4%. However, OTT platform, Netflix dropped by 5.3% after reporting weaker-than-expected Q4 forecast. AT&T also plunged 6.4% despite upbeat quarterly results and Elevance Health dipped 1.4% even after raising profit outlook for the current fiscal.

In Q3, SpaceX posted 161% YoY growth to $14.6 billion in revenue, while income from operations stood at $2.8 billion, net income of $4.4 billion, and adjusted EBITDA of $8.8 billion. Also, the Super Intelligence (AI) business emerged as the largest revenue contributor at $7.56 billion, followed by Connectivity/Starlink at $5.25 billion and Space/Rockets at $1.77 billion, with all three segments exceeding analyst estimates.

SpaceX shares are up sharply after reporting stronger-than-expected quarterly numbers, while discussions around a potential Tesla-SpaceX combination have added another catalyst to the broader technology trade, as per broker Vested's note.

"Netflix is on the other side of that trade, with shares under pressure after weaker guidance highlighted the growing difference between companies delivering against high expectations and those falling short," it added.

US Stock Market Outlook Today, October 22, 2026:

According to Vested's note, the more important question for markets is whether strong AI demand can continue to justify the scale of capital expenditure and financing across the sector. Recent weakness showed that investors are becoming more selective, but today's rebound suggests they are still willing to reward companies where revenue growth, margins and demand remain visible.

For Indian investors, the note said, the broader global setup remains mixed. Oil is still trading around $110 a barrel amid Middle East supply concerns, while US Treasury yields remain elevated. That means technology earnings can support risk appetite, but higher energy prices and rates continue to limit how broad the rally can become. For now, earnings quality and balance-sheet strength remain more important than simply having exposure to the AI theme.

Crude oil prices remain elevated with US WTI crude futures reaching near $98 per barrel and Brent crude near $110 per barrel.

Markets expect the Fed to hold rates steady on October 28, while pricing in a potential hike in December as policymakers assess persistent price pressures. Recent hotter-than-expected consumer and producer price data have reinforced concerns that surging energy costs are keeping inflation elevated. Meanwhile, UK inflation rose to an 11-month high of 3.5% in September, strengthening expectations that the Bank of England could raise interest rates as soon as November, as per Trading Economics.

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