Market Report, 2026-10-21

The market rebounded on Wednesday after yesterday’s SpaceX earnings report alleviated fears of a slowdown in AI-related capital expenditures. The company’s Superintelligence segment reported lower-than-expected artificial intelligence capital expenditure and a massive surge in AI revenue. A major criticism in today’s investment landscape is that AI-related capital expenditures are not being monetized sufficiently. SpaceX’s earnings report has largely offset this criticism, at least on the surface.

All major indices closed higher. The Dow rose 360 points to 52,856. The Nasdaq advanced 1.05% to 26,703. The S&P 500 gained 0.58% to 7,757. The rally was led by technology stocks, especially those heavily associated with AI. Industrial stocks followed, largely driven by beneficiaries of AI spending. Defensive sectors posted losses as the market rotated toward riskier assets.

The bond market edged lower as risk sentiment recovered. The U.S. 5-year Treasury yield rose 2 basis points to 4.95%, and the 10-year yield rose 1 basis point to 5.13%.

With no economic data released today, we will examine Netflix’s earnings report. The firm’s stock price dropped 5.3% today even though it considerably beat earnings expectations. The focus is largely on the fact that subscriber engagement has declined significantly, while there has been no broad-based decline in engagement across the industry, suggesting Netflix-specific weakness. The concern largely centers on subscriber retention, as viewers are increasingly fragmenting their attention across emerging streaming services.

Tomorrow, weekly jobless claims and the Leading Economic Index will be released. Adams Wealth Advisors is pleased to provide you with this report.