Wall Street split hard on Wednesday, with AI winners soaring while two familiar communications names got punished.
US stocks today closed mostly higher on Wednesday, October 21, 2026, as the Nasdaq outpaced other major indexes on Wall Street. SpaceX and Super Micro Computer drove the gains after both companies delivered strong results tied to artificial intelligence demand, while Netflix and AT&T dragged down communications shares.
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Nasdaq Leads Wall Street Higher On AI Optimism
The tech-heavy Nasdaq posted the strongest performance among major indexes on October 21, 2026, according to Reuters. The rally came after quarterly results from SpaceX and Super Micro Computer gave investors fresh reason to believe spending on artificial intelligence infrastructure was still growing, not slowing down.
Super Micro shares jumped about 9.6% to close near $35.58, based on one market compilation, making it one of the S&P 500's best performers that day. The AI-server maker forecast quarterly revenue and gross profit margins above what Wall Street had expected, with margins projected between 12% and 12.5%. That kind of forecast matters because Super Micro builds the actual server systems that cloud companies and tech giants use to run AI software, so its outlook works like an early signal for the whole industry.
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SpaceX Posts First Profit As A Public Company
SpaceX shares climbed roughly 7.8% to 7.9% at the close, according to Reuters and other market trackers, after the company reported its first-ever quarterly profit since going public. Some reports measured the gain even higher, between 8% and 11%, depending on whether they tracked intraday trading or final closing prices.
Elon Musk's rocket and space-technology company has become something bigger than a space business in investors' eyes. It now represents a mix of satellite connectivity, AI-linked services, and space commercialization all in one stock. Pre-market coverage also noted Musk's comment that annual recurring revenue could hit between $500 billion and $1 trillion by the end of 2027. That is a forecast, not a confirmed number, and investors should treat it as Musk's own projection rather than a locked-in financial result.
Adding more fuel to the stock's climb, Musk said a merger between SpaceX and Tesla would be "a good idea." That line alone sent speculation running through the market, even though it is only a personal opinion from Musk. There is no confirmed merger agreement, no shareholder vote, and no regulatory filing tied to that idea yet.
Netflix And AT&T Shares Tumble Despite Decent Earnings
Not every big name had a good day. Netflix shares fell about 5.2% to 5.3%, landing near $65.12 in one tracking service, after the streaming giant gave a weaker-than-expected profit forecast for the fourth quarter. Some outlets measured the drop as high as 6.6%, depending on timing during the session. Netflix had also recently cut 6% of its workforce, which added to investor nerves about where the company is headed next.
AT&T shares dropped around 6.1% to 6.5%, closing near $22, even though the company actually beat Wall Street's revenue and profit expectations for the third quarter. The real problem was weaker wireless postpaid phone additions, a number investors watch closely because it hints at future service revenue and how well AT&T is holding onto customers against competitors.
Communications-services stocks as a group fell about 1.2%, which held back the S&P 500's overall gain for the day. It was a clear example of investors caring more about what is coming next than what already happened. Netflix and AT&T both had reasonably strong quarters, but their forward guidance is what sent the stocks lower.
Wide Gap Between Winners And Losers Shows Market Split
One striking detail from the session: nearly 16 percentage points separated the best and worst performing stocks tracked across a 390-stock watchlist. That is an unusually wide spread for a single trading day, and it shows how sharply split sentiment was between AI-linked names and traditional communications businesses.
Other gainers that day included Applied Digital, Zscaler, Strategy, and United Airlines, riding the same wave of AI enthusiasm that lifted SpaceX and Super Micro. Meanwhile, names tied to subscriber growth or legacy telecom metrics struggled to keep pace, even when their core financial results looked fine on paper.
What Investors Are Watching Next
Attention is already turning toward upcoming earnings from Meta and Tesla, which were flagged in pre-market coverage as the next big test for the AI trade. Those results should show whether the rally stays concentrated in just a handful of companies like SpaceX and Super Micro, or whether it spreads out across the broader tech sector.
For SpaceX, the real question is whether this first profit was a one-time event or the start of a trend. Musk's bold revenue target for 2027 will need actual numbers behind it before investors start treating it as anything more than a talking point. Any SpaceX-Tesla merger talk would also need formal board approval, due diligence, and likely regulatory review before it becomes real.
For Super Micro, the next few quarters will show whether that 12% to 12.5% margin forecast holds up and whether AI server demand keeps growing at the same pace. For Netflix and AT&T, the pressure is now on execution. Both companies need to show improvement in the exact areas that spooked investors this week, subscriber growth for Netflix and postpaid phone additions for AT&T, or the selling pressure could continue into their next earnings reports.
