[New York Stock Market] Tech Stocks Rebound on SpaceX Boost, All Three Indexes Close Higher

International Oil Prices Mixed Amid Middle East Tensions and Hopes for Easing Russian Sanctions
Nasdaq Rises 1% as Optimism Toward AI Investments Grows

Technology stocks gained favor among investors amid strong results from SpaceX and news of merger discussions with Tesla, sending all three major U.S. stock indexes higher on October 21 (local time).

The Dow Jones Industrial Average rose 360.21 points, or 0.69%, from the previous session to close at 52,856.09. The S&P 500, which is heavily weighted toward large-cap stocks, gained 44.60 points, or 0.58%, to 7,757.17, while the Nasdaq Composite, dominated by technology stocks, climbed 278.04 points, or 1.05%, to 26,702.85.

New York Stock Exchange. New York (U.S.) = Correspondent Hwang Yoonju

Buying in technology stocks flowed into the market after SpaceX reported its results. The company said on October 20 that its third-quarter revenue had increased 161% from a year earlier. News that SpaceX's artificial intelligence (AI) business had grown ninefold also boosted investor sentiment toward AI-related stocks.

Investor sentiment was also bolstered by SpaceX CEO Elon Musk's announcement that the company had formed a special committee to discuss a merger between SpaceX and Tesla.

Among individual stocks, AMD rose 3.36%, Nvidia gained 2.54%, Micron Technology climbed 1.96%, Marvell Technology advanced 1.81%, Tesla increased 3.41%, and SpaceX rose 7.79%.

After the market closed, Tesla reported third-quarter revenue of $28.05 billion. This was slightly above the $27.9 billion forecast by market research firm London Stock Exchange Group (LSEG). Earnings per share (EPS) came in at 48 cents, also exceeding the market estimate of 43 cents.

Meta said its third-quarter revenue rose 26% from a year earlier to $64.6 billion. As with Tesla, the figure beat market expectations. However, its EPS was $3.83, below the market forecast of $5.75. Meta closed up 0.47% from the previous session.

Concerns remain, however, over the sustainability of AI investment. Some warn that it could take longer than expected for the massive sums being invested upfront in data centers, semiconductors, and other areas to translate into revenue and productivity gains.

Joe Zidle of Cresset Capital said SpaceX's results showed the AI industry's potential for growth, but had not dispelled concerns about overheated investment and excessive capital spending.

BlackRock CEO Larry Fink also warned that delays in data center construction could drive up computing costs and threaten economic growth. He said costs could be lowered by building data centers faster to increase the supply of computing capacity.

International oil prices ended mixed amid heightened military tensions in the Middle East and expectations that sanctions on Russian oil could be eased. West Texas Intermediate (WTI) crude for December delivery fell 0.68% from the previous session to settle at $97.15 a barrel on the New York Mercantile Exchange. Brent crude for December delivery rose 0.03% to settle at $108.82 a barrel on the ICE Futures Exchange in London.

Gold prices fell at one point to their lowest level since October 15 amid mounting inflation concerns as Brent crude prices rose in response to tensions in the Middle East, but then rebounded.

Markets are watching next week's Federal Reserve (Fed) October Federal Open Market Committee (FOMC) meeting and the personal consumption expenditures (PCE) price index. According to CME FedWatch, markets are pricing in an 88% chance of a December rate hike. Gold is considered a hedge against rising prices, but when interest rates rise, it can become less attractive than interest-bearing assets.

This content was produced with the assistance of AI translation services.