Wall Street Wrap: How the S&P 500, Dow and Nasdaq Performed

October 22, 2026 | ATN Trade & Finance

After their worst week since June, US equity markets staged a meaningful recovery in the first three sessions of the current week. Through Wednesday's close, all three major indices had recouped a significant portion of the prior week's losses, with the Nasdaq leading the rebound on the back of strong earnings from AI-adjacent companies.

Last Week's Selloff: The Low Point

The week of October 13–16 was rough. The S&P 500 fell 1.9% to close Friday at 7,659.44, retreating from the prior week's close of 7,811.54. The Nasdaq Composite dropped 4.5% to 26,140.03 — its sharpest weekly decline since June — as AI spending concerns and surging oil prices rattled growth stocks. The Dow Jones Industrial Average was the exception, eking out a +0.7% gain to close at 52,002.41, buoyed by defensive and value-oriented holdings. Year-to-date figures through October 16: S&P 500 +11.9%, Nasdaq +12.5%, Dow +8.2%.

This Week: Earnings Season Lifts the Mood

Markets turned sharply higher once the earnings calendar took over. On Tuesday, October 20, the Dow surged 529 points (+1.02%) to 52,495.88, driven by 3M's raised profit forecast and a broad rotation into cyclicals. The S&P 500 gained 0.28% to 7,712.57. The Nasdaq was flat (-0.02%) at 26,424.82 as chip equipment stocks pulled back ahead of major technology earnings due Wednesday. Small caps outperformed: the Russell 2000 rose 1.65%, and the equal-weight S&P 500 ETF (RSP) outpaced the cap-weighted index by nearly a full percentage point.

Wednesday, October 21 extended the rally. The S&P 500 added 0.58% to 7,757.17 — within 0.8% of its all-time high. The Dow rose 0.69% to 52,856.09, reaching a one-month high. The Nasdaq jumped 1.05% to 26,702.86, paced by a 1.97% surge in the Philadelphia Semiconductor Index as AI optimism returned. Technology was the top sector (+1.67%), followed by industrials (+0.91%). Communication Services was the only major sector to fall (-1.11%), dragged by telecom.

The Week's Notable Movers

The single biggest stock story of the week was Braze (BRZE), which surged 51.7% on Tuesday after agreeing to be acquired by Salesforce for $47.50 per share in cash — a premium that reverberated across enterprise software. SpaceX (SPCX) rose 7.79% on Wednesday after reporting its first quarterly profit as a public company, with Q3 revenue of $14.6 billion — up 161% year-over-year. Super Micro Computer (SMCI) added 9.55% after raising its quarterly revenue guidance to $18.5–$19.5 billion.

On the downside: Netflix (NFLX) fell 5.31% to a 52-week low after issuing a Q4 profit forecast below consensus. AT&T (T) fell 6.45% despite beating estimates and raising guidance, as investors apparently concluded the stock had already priced in the good news. General Motors (GM) declined 6.84% despite beating on revenue and announcing a $20 billion buyback — the guidance cut to a full-year EPS midpoint of $13.25 overrode the quarter's positives. Lithia Motors (LAD) fell 10.15% despite an EPS beat, reflecting investor concerns about auto sector demand trends.

Rates and Commodities

The 10-year US Treasury yield stood at 5.12% Tuesday, down 3 basis points on the session following weak September housing data. Brent crude remained elevated near $109/barrel — the Hormuz risk premium is fully embedded in prices — while the strong dollar is capping gold's upside after the metal reached $4,175 in early-week Asian trading.

What's Next

The major catalyst for Thursday's session is the after-hours reaction to Tesla and Meta earnings from Tuesday night. Tesla beat on revenue and non-GAAP EPS with margins rebounding to 19.6% gross; shares were up roughly 2% after hours. Meta beat on revenue at $64.6 billion but reported depressed EPS of $3.83 due to a $9.89 billion one-time settlement charge; excluding the charge, EPS would have been $7.40. How the market prices the Meta settlement and Tesla's margin recovery against its rising capex will shape the close of the week for both the Nasdaq and the S&P 500.

What this means: The week's two-act structure — a rough prior week followed by an earnings-driven rebound — reflects a market that is still fundamentally earnings-dependent rather than macro-driven. The Dow's relative resilience through the prior week's selloff and the Nasdaq's steeper recovery this week is the same rotation pattern that has defined 2026: growth underperforms on risk-off days but snaps back sharply when earnings validate the AI thesis. With the S&P 500 within 0.8% of its record and the Nasdaq still below its summer highs, the next catalyst is clear — it's whether Tesla and Meta's Thursday reactions confirm that the AI capex cycle is producing returns fast enough to justify its cost.

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Wall Street Wrap: How the S&P 500, Dow and Nasdaq Performed

Wall Street Wrap: How the S&P 500, Dow and Nasdaq Performed

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