Source: Sharecast
The Dow and S&P 500 ended 0.7% and 0.6% higher, respectively, while the Nasdaq jumped 1.1%. The Nasdaq has now pushed 2.2% higher over the past three days since hitting a one-month low last Friday.
Investors were eagerly awaiting results from Meta Platforms, Tesla and IBM, which were all slated to report after the close.
Shares in SpaceX jumped 8% after the company said third‑quarter revenues had surged 161%, while Elon Musk confirmed that SpaceX and Tesla were exploring a possible blockbuster merger, sending shares in the latter up 5%.
Musk, who is chief executive of both companies, said the car manufacturer and space and technology specialist had formed specialist committees to consider a possible tie-up. "Do I think it would be a good idea? Yes. But at the end of the day, the shareholders have to be supportive of this," said Musk, who has significant stakes in both businesses.
AI server manufacturer Super Micro Computer was also a high riser after raising its first-quarter revenue guidance by some $4bn to $18.5bn-19.5bn.
Philip Morris posted a solid rise in third‑quarter revenues, with net sales up 5.5% year‑on‑year to $11.4bn, although reported diluted earnings per share slipped 4.9% to $2.12 due to a non‑cash adjustment to the fair value of security investments. Shares were down 1%.
AT&T also underwhelmed with its results as the telecoms giant held on to full-year guidance despite beating analysts' estimates with its third‑quarter numbers. Netflix also slid after the streaming giant posted its slowest sales growth in three years and disappointing with its fouth-quarter guidance.
On the macro front, US mortgage applications fell 5.3% in the week ended 16 October, according to the Mortgage Bankers Association of America, extending their decline to a seventh straight week and taking activity to its lowest level since January 2025.
The drop came as borrowing costs remained near a three‑year high, with only a marginal easing in the average 30‑year fixed rate. Rising Treasury yields and expectations that the Federal Reserve will keep policy tighter for longer, alongside renewed inflation pressure from surging energy prices linked to the Iran war, continued to weigh on housing demand.