Context:

U.S. equity futures rose after Meta Platforms and Tesla posted mixed yet constructive results, with Meta delivering a revenue beat and stronger guidance and Tesla topping expectations for the quarter. The move followed a broader rally as AI enthusiasm and SpaceX-driven momentum lifted marquee names, even as individual stocks like Tesla traded little changed after hours. Investors balanced the ongoing optimism around AI-related spending with caution over costs and capex, while the broader market prepared for more earnings and key data in the coming sessions. Looking ahead, traders will assess additional results and the weekly jobless claims to gauge the pace of the economic and earnings backdrop.

Dive Deeper:

• Meta Platforms reported third-quarter revenue of $64.60 billion, topping analysts' expectations, and issued guidance for the fourth quarter that exceeded market estimates, underscoring stronger-than-expected demand and efficiency gains.

• Tesla posted a better-than-expected third-quarter performance, delivering solid top- and bottom-line results, though its shares traded largely flat in after-hours sessions as investors weighed the implications for AI-related investment and production costs.

• SpaceX’s blowout quarterly results helped lift investor sentiment toward AI beneficiaries, providing uplift for high-profile chip and AI names such as Micron Technology and Advanced Micro Devices in extended trading.

• Nvidia signaled expansion of its U.S. manufacturing footprint to meet growing demand for its accelerated computing and AI platform, reinforcing the theme of supply-side discipline supporting AI momentum.

• Southwest Airlines cut its 2026 profit outlook to a range of $2.60 to $2.85 per share, reflecting higher fuel costs and adding to a pattern of airlines trimming guidance in the current period, with shares sliding modestly in after-hours trading.

• Several major companies are on deck for earnings, including Procter & Gamble, Lockheed Martin, Valero Energy, and Honeywell, while the economic calendar will also feature weekly initial jobless claims to shape near-term outlook.