US Stock Market Update: Nasdaq Leads October 21 Gains as AI Shares Rally

U.S. stocks closed higher on October 21, with the Nasdaq up 1.05%, the S&P 500 up 0.58% and the Dow up 0.69% as technology shares regained momentum.

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Oct 22, 2026 - 02:11

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New York Stock Exchange building. Photo: Koon Chakhatrakan / Unsplash (Unsplash License); illustrative file image, cropped to 16:9.

US Stock Market Update: Nasdaq Leads October 21 Gains as AI Shares Rally

U.S. stocks closed higher on Wednesday, October 21, 2026, as renewed buying in technology and artificial-intelligence shares put the Nasdaq Composite ahead of the broader market. Corporate earnings remained the main focus, with gains in AI-linked companies contrasting with a sharp decline in Netflix.

This October 22 update covers Wednesday’s completed regular U.S. trading session, not live Thursday prices. It follows our previous update, which covered the October 20 close.

Nasdaq rises 1.05% as all three major indexes advance

The Nasdaq Composite finished at 26,702.86, gaining 278.04 points, or 1.05%. The S&P 500 added 44.60 points, or 0.58%, to 7,757.17. The Dow Jones Industrial Average rose 360.21 points, or 0.69%, to 52,856.09, according to Yahoo Finance’s historical daily closing data.

Nasdaq’s official index history also confirmed the Composite’s 26,702.86 closing level and 1.05% advance. Wednesday’s technology-led gains marked a change from Tuesday, when the Dow outperformed and the Nasdaq edged lower.

AI enthusiasm returns as earnings drive trading

SpaceX helped revive interest in the AI trade. CNBC reported that the company’s third-quarter revenue grew 161% and that its AI business expanded ninefold. Shares rallied during Wednesday’s session as investors assessed the results and potential closer ties with Tesla.

According to CNBC and Investopedia, Elon Musk said SpaceX and Tesla had formed special committees to discuss a possible merger. That is not an agreed transaction: Investopedia reported that no deal terms had been reached and that Musk cautioned against treating a merger as certain.

Chipmakers also participated in the rebound. CNBC’s session coverage reported gains in Advanced Micro Devices, Nvidia, Micron Technology and Marvell Technology. The renewed buying showed that earnings could still draw investors back to AI-related shares, even as concerns about spending and debt continued to shape sentiment.

Netflix falls as investors scrutinize guidance

Not every earnings report received a warm response. Netflix declined after its outlook disappointed investors. Investopedia reported that the streaming company forecast fourth-quarter revenue of $13.44 billion and earnings of 67 cents a share, both below the analyst consensus it cited.

Tesla, Meta Platforms and IBM were also in focus ahead of their scheduled after-hours results. Wednesday’s regular-session index closes do not include subsequent after-hours reactions. For the next session, the key question is whether fresh earnings support the technology rebound or renew doubts about the returns on AI investment.

Main image: NYSE building, an illustrative file photograph by Koon Chakhatrakan / Unsplash, published July 1, 2025. Cropped to 16:9; used under the Unsplash License. Not a photograph of Wednesday’s trading.