Asian shares and US equity-index futures rose in early trading on October 21, 2026, as stronger-than-expected updates from SpaceX and Super Micro Computer helped restore confidence in artificial-intelligence investments after the previous week’s technology selloff.
Key Takeaways
- The MSCI Asia Pacific Index gained 0.6%, while Nasdaq 100 futures rose 0.7%.
- SpaceX reported quarterly net income of $4.4 billion, more than double analysts’ average estimate.
- The recovery remained uneven, with Nextdc plunging and Netflix falling after disappointing outlooks.
Table of Contents
- Asian shares advance as technology sentiment improves
- SpaceX profit and Supermicro update lift expectations
- Company outlooks reveal an uneven recovery
- Oil steadies while longer-term Treasuries outperform
- Conclusion
Asian shares advance as technology sentiment improves
South Korean and Japanese stocks advanced, with South Korea’s Kospi rising 1.9%. The gains accompanied a recovery in enthusiasm for companies benefiting from spending on AI computing infrastructure.
Technology shares had been rattled the previous week by concerns over valuations and financing. The latest company updates offered reassurance, but the early gains in US futures were not completed regular-session returns.
Tim Waterer, chief market analyst at KCM Trade, said earnings beats and constructive corporate updates were easing some recent AI anxiety. He identified the forthcoming Meta Platforms and Tesla results as the next test of whether that improvement could broaden.
| Item | Details |
|---|---|
| Nextdc | Shares fell 44% after an outlook cut and renewed capital-expenditure program. |
| Netflix | Shares declined after a disappointing forecast; no percentage move was supplied. |
| Brent crude | Up 0.7% to near $109.50 a barrel in early October 21 trading. |
SpaceX profit and Supermicro update lift expectations
SpaceX posted net income of $4.4 billion for the quarter ended September, compared with analysts’ average estimate of $1.88 billion. Revenue increased 161% from a year earlier and exceeded expectations. Its shares rose around 7% in extended trading.
Super Micro Computer shares surged 15% after hours as its update also exceeded expectations. Supermicro’s October 20 preliminary business update filing confirms that the announcement covered the quarter ended September 30, 2026, its fiscal 2027 first quarter. The filing identifies the update as preliminary rather than final quarterly results.
Separately, Elon Musk said SpaceX and Tesla had formed special committees to explore a potential merger. That was an exploratory step, not an agreed or completed transaction.
Company outlooks reveal an uneven recovery
Not all companies shared in the rebound. Netflix declined after a disappointing forecast, while Australian data-center developer Nextdc suffered a particularly sharp fall after cutting its outlook and renewing its capital-expenditure program.
The contrasting reactions showed that renewed interest in the AI trade was not enough to offset company-specific concerns. Billionaire Ken Griffin remained cautious, saying investors were “almost certainly” in an AI bubble as businesses assessed spending requirements and the technology’s potential.
Oil steadies while longer-term Treasuries outperform
Brent crude rose in early Wednesday trading after a volatile Tuesday session marked by conflicting headlines about efforts to end the US-Iran war.
Long-term Treasuries outperformed during the preceding New York session, weighing on the dollar. RBC Capital Markets US rates strategist Izaac Brook said the previous week’s AI-related retreat from risk remained a factor in bond trading, while lower oil prices during that session also helped put downward pressure on yields.
Conclusion
Meta and Tesla were due to report on October 21. Their results and guidance were the next scheduled tests of whether the early improvement in technology sentiment could extend beyond the initial earnings reactions.
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