October 19–23, 2026
Wall Street entered the week hoping for a technology rebound and got one Monday, but by Thursday the debate surrounding the cost and pace of artificial-intelligence investment had returned with a vengeance.
By Friday, the picture was mixed. Around midday, the S&P 500 was roughly flat for the week, the Nasdaq Composite was down about 0.5%, while the Dow Jones Industrial Average was tracking toward a weekly gain of roughly 1.7%. [tradingeconomics.com]
The divergence was perhaps the week’s most important market message: investors weren’t abandoning equities uniformly. They were becoming increasingly selective.
Monday: Technology Tries to Bounce Back
Wall Street started the week with technology attempting to recover from the previous week’s sharp decline.
The Nasdaq Composite gained 1.11%, while the S&P 500 rose 0.41%. The Dow Jones Industrial Average slipped just 0.07%. [cnbc.com]
Semiconductors participated in the rebound. Intel gained roughly 2% following a JPMorgan upgrade, while AMD and Micron Technology also advanced. [cnbc.com]
That set the stage for what everyone was really waiting for: earnings.
Approximately 72 companies were listed on TheStreet’s calendar to report during the October 19–23 week, including some of the market’s most closely followed names. [pro.thestreet.com]
Tuesday: SpaceX Lifts Off, Netflix Doesn’t
Tuesday’s regular session was relatively quiet. The S&P 500 gained 0.28%, while the Nasdaq Composite was essentially flat. [finance.yahoo.com]
Then came the closing bell.
SpaceX reported third-quarter revenue of approximately $14.58 billion, up 161% year over year, while shares gained about 5% in early after-hours trading. [finance.yahoo.com], [marketbeat.com]
Netflix had a very different evening. The company exceeded Wall Street’s quarterly earnings expectations, but shares fell roughly 6% after hours as investors focused on fourth-quarter expectations. [thestreet.com]
That gave us one of our favorite Diamonds & Dogs lessons:
Earnings aren’t simply about whether a company beats estimates. Wall Street also grades what management says about the road ahead.
Wednesday: Telecom Meets Its New Rival Again
Wednesday brought another technology rally, with the Nasdaq Composite gaining 1.05%, while the S&P 500 rose 0.58% and the Dow Jones Industrial Average added 0.69%. [countryeconomy.com]
But the telecom story continued evolving.
SpaceX’s recent agreement to acquire nationwide low-band spectrum, subject to regulatory approval, has intensified investor attention surrounding Starlink Mobile’s ambitions in U.S. wireless communications. [cnbc.com]
That continued to place companies such as AT&T, Verizon Communications and T-Mobile US under scrutiny.
And this would become important again Friday.
Thursday: Lockheed Martin Flies While Technology Falls
Thursday provided perhaps the week’s starkest contrast.
The Nasdaq Composite plunged 2.6%, its worst single-day performance since early June, while the S&P 500 declined 1.2%. Yet the Dow Jones Industrial Average managed to finish slightly positive. [zacks.com]
Our Diamond, Lockheed Martin, delivered a much brighter story.
The company reported third-quarter sales of $20.7 billion, up 11%, while net earnings increased 14% to $1.8 billion, or $7.97 per share. Backlog reached a record $292 billion, and the company increased its 2026 financial outlook. [investors….martin.com]
Shares closed Thursday up approximately 6.7%. [marketbeat.com]
Our Dog was Meta Platforms.
Here’s what made that story interesting: Meta Platforms actually reported 26% revenue growth to $64.6 billion. Yet its capital spending reached $34.91 billion during the quarter, and the company said it expects $135 billion to $145 billion in 2026 capital expenditures as it continues investing heavily in AI. [businessinsider.com]
The market’s concern Thursday wasn’t necessarily whether AI works.
It was once again:
What will all this AI infrastructure cost, and how quickly might it produce an adequate return?
Friday: Elon Musk Looks Toward the Cell Tower
Friday gave us one of the week’s more entertaining twists.
After building a satellite network, SpaceX is reportedly discussing access to terrestrial cell towers as part of Starlink Mobile’s ambitions.
Published reports said the company has held discussions involving cell-tower sites, including conversations involving Crown Castle. Crown Castle shares jumped sharply Friday morning, while AT&T, Verizon Communications and T-Mobile US declined in premarket trading. [forbes.com]
Our Friday Diamond therefore went to Crown Castle.
And, as we joked earlier:
Apparently even space needs a few cell towers.
Then There’s Moderna
Our Dog provided one of the week’s most fascinating examples of expectations versus reality.
Moderna shares plunged 17.6% Thursday after detailed Phase 3 data emerged for its personalized melanoma vaccine developed with Merck. [finance.yahoo.com]
Yet the reported clinical results themselves showed benefit.
The combination with Merck’s Keytruda reduced the risk of recurrence or death by 42% compared with Keytruda alone in the patient population studied. Approximately 82% of patients receiving the combination were alive without recurrence at two years versus roughly 70% receiving Keytruda alone. [cnbc.com]
The crucial distinction is that the stock’s decline should not be interpreted as evidence that the clinical trial failed.
Rather, investors were digesting detailed results after the shares had already experienced a substantial run. [finance.yahoo.com], [cnbc.com]
The Week in Three Words
Earnings. Expectations. AI.
Earnings because this was one of the busiest reporting weeks of the quarter, with Netflix, SpaceX, Meta Platforms, Tesla, Lockheed Martin and dozens of other companies reporting. [pro.thestreet.com]
Expectations because several stocks demonstrated that reported results alone don’t determine the market’s reaction. Netflix exceeded earnings expectations but fell after hours, while Moderna’s shares declined sharply despite favorable clinical results. [thestreet.com], [cnbc.com]
And AI, because the debate surrounding enormous capital expenditures once again drove technology-sector volatility Thursday. [zacks.com], [businessinsider.com]
Important Disclosure
This commentary is provided solely for informational and educational purposes and should not be considered a recommendation or solicitation to buy, sell or hold any security, sector, index or investment strategy. References to individual securities, clinical trials, emerging technologies, corporate expenditures and historical market performance are included to illustrate publicly reported developments and do not constitute investment recommendations. Clinical results do not assure regulatory approval or commercial success. Potential corporate initiatives or transactions may not be completed as contemplated. Past performance does not guarantee future results. Investing involves risk, including possible loss of principal.