Wall Street climbed on October 21, led by technology, as an AI fueled surge in SpaceX lifted chip stocks and set an upbeat tone right before two of the quarter's biggest earnings reports. Here is where the market stands and what Meta and Tesla need to deliver after the close.
A Tech-Led Rally
The Nasdaq rose about 1%, outpacing the broader market, while the S&P 500 added roughly 0.6% and the Dow gained about 360 points. The spark was SpaceX, whose AI compute business posted explosive growth and reignited enthusiasm for the AI hardware trade. That lifted the chip leaders: Nvidia (NVDA) rose more than 1.5% and AMD (AMD) gained about 2%. After a rough prior week, the bounce we flagged in our megaweek preview kept building.
Meta and Tesla on Deck
Both Meta (META) and Tesla (TSLA) report after Wednesday's close, so the real price reaction lands Thursday. For Tesla, Wall Street expects roughly flat revenue near $28.1 billion and earnings down about 10% to $0.45, with automotive gross margin excluding regulatory credits as the number that matters. For Meta, the theme is AI: strong advertising is expected, but investors want proof the billions in AI spending are starting to pay off. Our full breakdown is in the Meta and Tesla earnings preview. Options markets price moves of about 7% for each.
The Netflix Warning Shot
There is a cautionary tale fresh in investors' minds. Netflix beat its quarter the night before and still fell to a two-year low after cutting its advertising guidance, as we covered in our Netflix results recap. The message for Meta and Tesla is clear: beating the quarter will not be enough if the guidance disappoints. The outlook, not the headline, will move these stocks.
What to Watch Into Thursday
The setup is a recently sold off, now rebounding market heading into its most important earnings of the season, with the Federal Reserve decision on October 28 just days away. Strong, confident guidance from Meta and Tesla could cement the recovery; a Netflix style outlook stumble could reopen the downdraft. Watch margins at Tesla and AI payoff signals at Meta above all.
Track the market and these movers on Stock Market ROIFrequently Asked Questions
Why did tech stocks rise on October 21, 2026?
A surge in SpaceX, driven by explosive growth in its AI compute business, lifted AI chip stocks like Nvidia and AMD and led a broad technology rally that pushed the Nasdaq up about 1%.
When do Meta and Tesla report earnings?
Both report after the close on Wednesday, October 21, 2026, so the main stock reaction comes in Thursday's session.
What should investors watch in the Meta and Tesla reports?
For Tesla, automotive gross margin excluding regulatory credits and the product roadmap. For Meta, whether its heavy AI spending is translating into results, alongside its still strong advertising business and capex guidance.
The Takeaway
A SpaceX driven rally set an optimistic stage, but the Netflix reaction is a reminder that guidance rules earnings season. Meta and Tesla now have to clear a higher bar than the headline number, and they report into a nervous market just a week before the Fed. The next 48 hours will tell us whether this rebound has staying power. For the bigger debate on the AI trade, see our three scenarios.
This article is for informational purposes only and is not financial advice. Always do your own research before investing.
