We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stock markets closed higher on Wednesday after strong third-quarter 2026 earnings. Artificial intelligence (AI) trade also regained momentum. Moreover, yields on U.S. sovereign bonds remained static. All three major stock indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.7% to close at 52,856.09 or 360.21 points after a choppy session. Notably, 17 components of the 30-stock index ended in positive territory, while 13 ended in negative territory. At the intraday low, the blue-chip index was down nearly 104 points.
The tech-heavy Nasdaq Composite ended at 26,702.86, rising 1.1% or 278.04 points on strong performance by technology bigwigs. The S&P 500 gained 0.6% to finish at 7,757.17. Ten out of 11 sectors of the broad-market index ended in positive territory while one finished in negative territory.
The Utilities Select Sector SPDR (XLU), the Real Estate Select Sector SPDR (XLRE), the Health Care Select Sector SPDR (XLV) and the Financials Select Sector SPDR (XLF) rose 1.3%, 1.7%, 2.4% and 1.2%, respectively.
The fear gauge CBOE Volatility Index (VIX) was down 3.6% to 16.68. A total of 16.11 billion shares were traded on Wednesday, lower than the last 20-session average of 17.10 billion. Advancers outnumbered decliners by a 1.37-to-1 ratio on the NYSE. On the Nasdaq, a 1.3-to-1 ratio favored advancing issues.
AI Server Stocks Surge
The AI server manufacturing behemoth Super Micro Computer Inc. (SMCI - Free Report) raised its first-quarter fiscal 2027 revenue projection to $18.5-19.5 billion from the earlier projection of $14.5-15.5 billion. Supported by a favorable customer and product mix, the company raised its gross margin forecast to 12-12.5% from 10.4-10.8% projected earlier.
As a result, the stock price of SMCI jumped 9.6%. Other giant AI server manufacturers like, Dell Technologies Inc. (DELL - Free Report) and Hewlett Packard Enterprise Co. (HPE - Free Report) increased 5.3% and 3.7%, respectively.
Strong Third-Quarter Earnings Results
Space Exploration Technologies Corp. (SPCX - Free Report) reported third-quarter 2026 earnings of $0.35 per share, crushing the Zacks Consensus Estimate of $0.10 by 250%. Revenue soared 161% year over year to $14.57 billion, easily surpassing expectations of $12.53 billion by more than 16%.
SPCX reiterated its goal of reaching $100 billion in annual recurring revenue (ARR) by the end of 2026, with management projecting an extraordinary $500 billion to $1 trillion in ARR by the end of 2027. Elon Musk said that SpaceX and EV giant Tesla Inc. (TSLA - Free Report) have formed special committees to discuss a merger.
Yields on U.S. government bonds of different maturities remained unchanged. The yield on the benchmark 10-Year U.S. Treasury Note remained unchanged at 5.119%. The yield on the short-term 2-Year U.S. Treasury Note was flat at 4.7889%. The yield on the long-term 30-Year U.S. Treasury Note stayed firm at 5.4264%.
Economic Data
For the week ending Oct. 16, 2026, commercial crude oil inventories (excluding the Strategic Petroleum Reserve) decreased 3.1 million barrels to 412.5 million barrels, 3% below the five-year average.
View the Zacks #1 Rank List
Image: Bigstock
Stock Market News for Oct 22, 2026
U.S. stock markets closed higher on Wednesday after strong third-quarter 2026 earnings. Artificial intelligence (AI) trade also regained momentum. Moreover, yields on U.S. sovereign bonds remained static. All three major stock indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.7% to close at 52,856.09 or 360.21 points after a choppy session. Notably, 17 components of the 30-stock index ended in positive territory, while 13 ended in negative territory. At the intraday low, the blue-chip index was down nearly 104 points.
The tech-heavy Nasdaq Composite ended at 26,702.86, rising 1.1% or 278.04 points on strong performance by technology bigwigs. The S&P 500 gained 0.6% to finish at 7,757.17. Ten out of 11 sectors of the broad-market index ended in positive territory while one finished in negative territory.
The Utilities Select Sector SPDR (XLU), the Real Estate Select Sector SPDR (XLRE), the Health Care Select Sector SPDR (XLV) and the Financials Select Sector SPDR (XLF) rose 1.3%, 1.7%, 2.4% and 1.2%, respectively.
The fear gauge CBOE Volatility Index (VIX) was down 3.6% to 16.68. A total of 16.11 billion shares were traded on Wednesday, lower than the last 20-session average of 17.10 billion. Advancers outnumbered decliners by a 1.37-to-1 ratio on the NYSE. On the Nasdaq, a 1.3-to-1 ratio favored advancing issues.
AI Server Stocks Surge
The AI server manufacturing behemoth Super Micro Computer Inc. (SMCI - Free Report) raised its first-quarter fiscal 2027 revenue projection to $18.5-19.5 billion from the earlier projection of $14.5-15.5 billion. Supported by a favorable customer and product mix, the company raised its gross margin forecast to 12-12.5% from 10.4-10.8% projected earlier.
As a result, the stock price of SMCI jumped 9.6%. Other giant AI server manufacturers like, Dell Technologies Inc. (DELL - Free Report) and Hewlett Packard Enterprise Co. (HPE - Free Report) increased 5.3% and 3.7%, respectively.
Strong Third-Quarter Earnings Results
Space Exploration Technologies Corp. (SPCX - Free Report) reported third-quarter 2026 earnings of $0.35 per share, crushing the Zacks Consensus Estimate of $0.10 by 250%. Revenue soared 161% year over year to $14.57 billion, easily surpassing expectations of $12.53 billion by more than 16%.
SPCX reiterated its goal of reaching $100 billion in annual recurring revenue (ARR) by the end of 2026, with management projecting an extraordinary $500 billion to $1 trillion in ARR by the end of 2027. Elon Musk said that SpaceX and EV giant Tesla Inc. (TSLA - Free Report) have formed special committees to discuss a merger.
As a result, stock prices of SpaceX and Tesla jumped 7.8% and 3.4%, respectively. Space Exploration Technologies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
U.S. Bond Yields Stay Firm
Yields on U.S. government bonds of different maturities remained unchanged. The yield on the benchmark 10-Year U.S. Treasury Note remained unchanged at 5.119%. The yield on the short-term 2-Year U.S. Treasury Note was flat at 4.7889%. The yield on the long-term 30-Year U.S. Treasury Note stayed firm at 5.4264%.
Economic Data
For the week ending Oct. 16, 2026, commercial crude oil inventories (excluding the Strategic Petroleum Reserve) decreased 3.1 million barrels to 412.5 million barrels, 3% below the five-year average.