Most U.S. stocks rose last night, but tech stocks didn’t join the celebration.
The Dow rose 1.0% and the S&P 500 gained 0.3%, while the Nasdaq closed virtually flat. For those new to U.S. stocks, this contrast is more worth watching than simply saying “the indexes rose.”
📌 What happened last night wasn’t a broad return to risk-taking so much as a style rotation: healthcare, small caps, value stocks, and some defensive sectors performed better, while growth and tech remained weak. Reuters data showed the S&P 500 Value Index up 0.9%, the Growth Index down 0.2%, and the technology sector down 0.3%.
Oil prices were one of the external factors. Brent crude came close to $112 a barrel intraday before falling back to $108.79, helping the broader market recover its early losses. But oil prices rose again in early Asian trading amid risks to Middle Eastern supply and shipping. Oil doesn’t necessarily determine how the stock market performs on any given day, but it can affect concerns about inflation, interest rates, and highly valued assets.
Tonight, the real test for tech stocks is earnings. For Meta, Tesla, and Lam Research, don’t focus only on the words “beat expectations.” Pay close attention to these three things:
① Capital expenditures: How much more will they need to invest in AI?
② Revenue and margins: Are these investments starting to generate operating returns?
③ Free cash flow: Can the company sustain ongoing investment?
An opportunity isn’t something you can call just because you see a single green candle. The market is more likely to start distinguishing companies that can deliver tangible results from those relying solely on a narrative when oil-price risks aren’t worsening and earnings show that investments are paying off.
If earnings are good tonight but tech stocks still don’t rally, what would matter most to you: valuations, oil prices, or returns on AI investment? Why?
For educational and discussion purposes only; this is not investment advice. Data as of the close on October 20, 2026, U.S. time; oil-price information for the Asian session is current through Reuters reports on October 21.