U.S. Futures Hold Steady After Hours
U.S. stock futures were little changed late Wednesday, with Dow futures up about 0.1%, S&P 500 futures edging higher and Nasdaq 100 futures slightly lower. Meta Platforms and Tesla dominated after-hours trading after releasing quarterly results, while Texas Instruments, IBM, CSX, SAP and United Rentals also reported.
The move in futures does not necessarily indicate how stocks will trade during the next regular session. With earnings season still in full swing, results and guidance from technology companies, artificial-intelligence hardware makers and large growth stocks remain important drivers of the major indexes.
Meta Reports Strong Earnings and Announces 2-for-1 Split
Meta Platforms reported third-quarter earnings above market expectations and announced plans for a 2-for-1 stock split. The shares edged higher after hours. Meta closed Wednesday’s regular session up 0.5% at $697.52, after falling for five straight sessions.
The stock has rebounded from a key technical level but faced resistance near its 21-day moving average. The market is also assessing whether Meta’s newly launched Muse artificial-intelligence agent can generate meaningful revenue or will remain primarily a defensive investment. Mizuho senior analyst Lloyd Walmsley said investors will need to monitor measures such as product adoption when evaluating the scope for further changes in Meta’s valuation.
Tesla Beats on Earnings but Misses on Revenue
Tesla’s third-quarter earnings exceeded expectations, while revenue came in slightly below forecasts. Capital spending unexpectedly declined from the second quarter, allowing the company to generate positive free cash flow. Tesla shares rose about 1% after hours to above $390, near a trend line just below $395.
Tesla gained 3.4% in regular trading on Wednesday to close at $386.47, breaking above a short-term high and its 200-day moving average. During a SpaceX earnings call, Elon Musk said SpaceX and Tesla were examining the possibility of a merger. The comments added to Tesla’s after-hours attention, although the companies have not clarified whether they will proceed, what transaction structure might be used or when a deal could take place.
SpaceX and Super Micro Lift Technology Shares
SpaceX rose 7.8% on Wednesday to close at $159.31. The shares initially climbed after the company reported strong results and issued optimistic guidance before pulling back from the session high. SpaceX moved decisively above its 50-day and 21-day moving averages, although a sharp increase in capital spending also points to rising cash-use pressure.
Super Micro Computer shares jumped after the company released preliminary revenue figures, providing another boost to Nasdaq-related stocks. Artificial-intelligence hardware and chip shares broadly performed well, while Datadog and NetApp also showed strength near key price levels.
Several Companies Release Quarterly Results
Texas Instruments, IBM, Lam Research, CSX, SAP, Medpace Holdings and United Rentals all reported results Wednesday evening. SAP shares rose noticeably, with the move suggesting that the stock was trading outside a buy range. CSX advanced steadily and United Rentals edged higher. IBM posted a larger gain, while Texas Instruments moved modestly higher.
Lam Research fell sharply and Medpace declined moderately. Commentary on orders, capital spending and forward guidance will continue to shape individual stocks across the semiconductor, software, transportation and healthcare-services sectors.
Nasdaq Reclaims Its 50-Day Average
The major U.S. indexes broadly rebounded Wednesday. The Dow Jones Industrial Average rose 0.7%, the S&P 500 gained 0.6%, the Nasdaq Composite advanced 1.05% and the small-cap Russell 2000 added 0.3%, although the Russell 2000 encountered resistance near its 200-day moving average.
The Nasdaq moved back above its 50-day moving average. The Dow and S&P 500 had reclaimed that level on Tuesday and moved further above their 21-day moving averages on Wednesday. The equal-weighted S&P 500 ETF rose 0.4% and traded well above its 50-day average. The equal-weighted Nasdaq 100 ETF gained 0.7% but remained below its 50-day average.
Among sectors, chip stocks, artificial-intelligence hardware companies, selected biotechnology names and testing companies performed strongly. Retailers, consumer-staples stocks and large pharmaceutical companies gave back some of their earlier gains. Growth-focused ETFs also advanced: the iShares Expanded Tech-Software Sector ETF rose 1.8%, the VanEck Semiconductor ETF gained 1.9%, the ARK Innovation ETF climbed 2.4% and the ARK Genomic Revolution ETF added 2.5%.
Oil Prices and Treasury Yields Move Higher
U.S. crude futures fell 0.7% at the 2:30 p.m. Eastern settlement to $97.15 a barrel. By 4 p.m., crude had turned slightly higher at about $98. The yield on the 10-year U.S. Treasury rose three basis points to 5.145%.
With major indexes, bond yields and energy prices all moving, earnings reactions may feed into broader index performance through technology-sector weightings, growth-stock valuations and shifts in risk appetite. The market will continue to track the responses to Meta’s and Tesla’s results, as well as whether the indexes can hold above key moving averages in subsequent trading.