SpaceX Revenue Surge and 3M Guidance Lift U.S. Stocks; Asia Rebounds on AI Optimism
U.S. equities rose Tuesday as SpaceX reported a 161% revenue jump and 3M raised profit guidance, while Asian markets rebounded Wednesday on renewed AI optimism. Netflix shares fell after meeting revenue expectations but offering a weak outlook. Oil prices declined, and Goldman Sachs expects earnings to support stocks into year-end despite AI volatility.
Key points
- SpaceX shares jumped 8% after reporting third-quarter revenue of $14.58 billion, up 161% year-on-year. Elon Musk announced special committees to discuss a potential merger with Tesla, which rose 1%.
- The Dow Jones Industrial Average gained nearly 530 points (1%), led by 3M, which rose over 5% after raising full-year profit guidance. The S&P 500 rose 0.3%, while the Nasdaq Composite ended marginally lower.
- Netflix shares fell more than 5% after third-quarter revenue of $12.87 billion met expectations but the company lowered its full-year ad revenue forecast to $2.7 billion from $3 billion, citing slower product rollout.
- Asian markets rebounded Wednesday, with South Korea’s Kospi index up 4.4% and Japan’s Nikkei 225 up 1.6%. South Korea’s exchange briefly halted program trading after Kospi 200 futures surged 5%, triggering a volatility curb.
- West Texas Intermediate crude futures fell 1.8% and Brent crude lost 0.7%. Goldman Sachs’ Christian Mueller-Glissmann noted that while AI concerns and geopolitical tensions may cause near-term volatility, earnings support and lower valuations should help equities into year-end.
Background
This follows recent scrutiny of AI monetization, including SpaceX’s $2 trillion IPO and share unlock concerns noted in October 2026. Netflix’s Q3 results, reported October 20, 2026, showed a 6% stock drop due to weak Q4 outlook and reduced ad revenue guidance, despite beating earnings estimates. The current market reaction reflects a shift from AI skepticism to renewed optimism following SpaceX’s strong revenue performance.
How outlets are covering it
CNBC emphasizes the broad market rebound driven by SpaceX and 3M, while AP News highlights relative stability in U.S. stocks despite AI-related swings. Yahoo Finance data shows mixed performance, with General Motors down 6.79% and Braze up 50.92%, indicating sector divergence. Goldman Sachs views earnings as a stabilizing force, whereas traders remain cautious about AI infrastructure sustainability, as seen in the volatility of neocloud stocks like CoreWeave and Elice.
Why it matters
The market’s response to SpaceX’s revenue surge and 3M’s guidance signals investor confidence in AI infrastructure and industrial earnings. However, Netflix’s weak outlook and oil price declines suggest underlying concerns about ad revenue sustainability and energy demand. These dynamics will influence year-end equity performance and AI investment strategies.
What to watch
Investors will watch Meta Platforms, Tesla, IBM, and Southwest Airlines for Wednesday earnings. Meta’s AI model 'Muse Wonder' is limited to paying users, and Tesla’s merger discussions with SpaceX may impact both stocks. Asian markets will continue to assess AI infrastructure profitability, with South Korea’s Kospi 200 futures volatility a key indicator.
- Stock futures rise as traders evaluate latest raft of earnings; SpaceX shares surge: Live updates CNBC
- Stock market today: Dow rises, S&P 500, Nasdaq climb as dip buying resumes Yahoo Finance
- Most US stocks rise following strong profit reports from Equifax, Hasbro and other big companies AP News
- U.S. Stocks Mixed as Strong Earnings Offset AI Credit Fears WSJ
- Dow outperforms as Wall Street rises, healthcare stocks lead gains Reuters
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