SpaceX AI blowout lifts Nasdaq 1.1% as Meta reaches for the chequebook

SpaceX's ninefold AI growth and 13-gigawatt computing ambition drove chips up 2.2% and Nvidia 2.5%, while Meta beat but created a non-voting share class to fund its buildout; Netflix fell 5.3% and AT&T 6.4%

Deepakshi

Kristal Research & Marketing team

22 Oct2 min

Key takeaways — AI summary

US stocks rose Wednesday led by tech: the S&P 500 added 0.60% to 7,759, the Nasdaq 100 gained 1.13% to 29,823 and the Dow rose 0.69% to 52,857; technology was the best sector at +1.61% while communication services lagged at -1.33%.
SpaceX beat on revenue and profit, said its AI business grew ninefold, and Elon Musk floated roughly 13 gigawatts of computing; JPMorgan more than doubled its 2027-28 estimates (modelling 10 gigawatts by end-2027) and Morgan Stanley lifted its 2027 revenue forecast to $178bn from $113bn. Chips rose 2.2%, Nvidia 2.5% and Super Micro 9.6%; cybersecurity names jumped 5-8% after an AI-found flaw in PHP.
After the close Meta beat with revenue of $64.6bn and guided Q4 above expectations, but announced a new non-voting Class C share class with capital-raising listed first among the reasons; its debt ($83.7bn) now exceeds its cash ($82.4bn). Tesla topped profit forecasts but slipped 2.2% after its call.
Losers included Netflix, down 5.3% to its lowest close since August 2024 after cutting its 2026 ad target to $2.7bn, and AT&T, down 6.4% on soft subscriber adds and SpaceX's plan for a Starlink Mobile phone service in early 2028; Chinese internet names fell again and the Hang Seng Tech index closed below 4,000 for the first time since October 2024.
The 10-year Treasury yield rose 0.03pp to 5.14% after a weak $13bn 20-year auction; WTI slipped $0.67 to $97.15 despite drone strikes on a Saudi oilfield, as Washington licensed a 30-day wind-down of sanctioned Iranian cargo, while gold eased 1.25% to $4,090. Markets price about a 15% chance of a Fed hike next week but fully price one by December.

Generated by Kristal AI · reviewed by the research desk

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