Wall Street Rallies as SpaceX Quarterly Results Boost AI Tech Sentiment

MUMBAI, 22 OCTOBER: U.S. equity markets closed higher on Wednesday as corporate earnings remained in focus. Better-than-expected revenue and earnings from SpaceX, along with the latest developments around SpaceX and Tesla, led investors to rotate back into technology stocks. The Nasdaq Composite added 1.05% to end at 26,702, while the S&P 500 rose 0.58% to 7,757. The Dow Jones Industrial Average climbed 360 points, or 0.69%, to close at 52,856.

Shares of SpaceX surged 7% after the company reported 161% year-on-year revenue growth in the third quarter. Elon Musk also said that SpaceX and Tesla have formed special committees to discuss a potential merger.

However, U.S. stock futures trading lower as investors digested third-quarter earnings from major technology companies, including Meta, Tesla and IBM. Dow futures were down nearly 150 points, while Nasdaq futures declined almost 200 points.

Treasury yields ended largely unchanged as investors awaited fresh economic data ahead of next week’s Federal Reserve interest-rate decision. The yield on the 10-year U.S. Treasury rose less than 1 basis point to 5.123%.

Brent crude futures trading higher by $1.57, or 1.5%, to $110.39 a barrel while US West Texas Intermediate (WTI) crude trading higher by $ 1.21 or 1.26%, to $98.36 as US orders diplomats to leave Saudi Arabia amid escalating tensions.

Asian markets trading lower tracking weak U.S. futures. South Korea’s Kospi fell nearly 2%, Hong Kong’s Hang Seng Index declined 2%, and Japan’s Nikkei 225 slipped 0.7%.

Coming to our markets, the Nifty fell for the second consecutive session yesterday, shedding 77 points to close at 22,811. From the day’s high, the index fell sharply by 470 points to an intraday low of 22,650. Buying in the final half-hour, along with a gain of more than 70 points in the closing auction session (CAS), helped the index recover 161 points from the day’s low.

Broader markets significantly underperformed the benchmarks. The Nifty Midcap 100 slipped 1.60% to a six-month low, while the Nifty Smallcap 100 plunged 2.40% to a four-month low. Market breadth remained weak, with the advance–decline ratio falling sharply to 0.28, underscoring broad-based profit-booking across mid- and small-cap stocks.

The Indian rupee strengthened for an eighth consecutive session, appreciating 47 paise to close at four months high at 94.46—its longest winning streak since March 2025. The sustained momentum has been anchored by strategic central-bank intervention, healthy foreign inflows into the primary market and profit-taking in the US dollar.

From the derivative pack, Adani enterprise, Colgate, Havells, Hpcl, Nam India, Sagility and Swiggy are going to decare its quarterly result today.

Although Nifty breached the crucial 22,800 support intraday, it managed to close above the level, keeping hopes of an uptrend alive. Immediate support is placed at 22,650, followed by 22,500, while the recent swing high of 23,175 may act as near-term resistance. Indian markets are expected to open lower today, tracking weak Asian market cues.

Report by: Mr. Devarsh Vakil, Head of Prime Research at HDFC Securities.

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing)

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