SpaceX's strong results boosted U.S. stocks. Is the worst behind us?

Major U.S. stock indices opened in positive territory on October 21. Investor sentiment was buoyed by strong financial results from SpaceX and server manufacturer Supermicro, which reinforced the market’s optimistic outlook on artificial intelligence, according to Bloomberg.

The broad U.S. stock index, the S&P 500, rose 0.3% in the first few minutes of trading; the tech-heavy Nasdaq Composite gained 0.7%; and the blue-chip Dow Jones Industrial Average is up 0.2%.

SpaceX shares jumped 10%—the day before, after the market closed, the company reported profits that were more than double the forecast. It achieved these results, among other things, thanks to growth in its artificial intelligence business.

“Does this mean the worst is behind us and that the sell-off in the tech sector—especially in chipmaker stocks—which has been going on since the beginning of the month, is over? Perhaps,” said David Morrison of Trade Nation. “In any case, earnings season has gotten off to another impressive start,” he concluded (as quoted by Bloomberg).

Investors' attention will now shift to the financial reports of other tech giants: Meta Platforms and Tesla are set to release their reports on October 21 after the U.S. stock markets close.

This article is being updated

This article was AI-translated and verified by a human editor