By Mike Dolan
Oct 21 (Reuters) – It was hard to keep track of global markets from hour to hour on Tuesday, with Brent crude hitting fresh five-month highs before plunging, which rippled through tech-focussed stocks.
The crude reversal came after reports of renewed mediation efforts in the Iran war, though statements from Tehran later threw cold water on any hopes of an immediate breakthrough.
As it stands, crude is back above $110 per barrel this morning, with energy markets keeping one eye on US envoys’ visit to Moscow and Ukraine war talks.
Stock markets were focussed on the unfolding earnings season for Big Tech, with SpaceX surging almost 10% overnight after its beat – and excitement over hints at a possible merger with Elon Musk’s other megacap, Tesla.
Musk claimed a merger between the two, which would see a combined market value of $3.5 trillion, would be a “good idea” and said committees were examining the possibility.
Tesla will report earnings later today, though hyperscaler Meta tops the calendar.
There was less good news on Tuesday for lagging streaming giant Netflix, whose stock skidded another 5% out of hours after income estimates missed forecasts and advertising guidance fell.
Elsewhere, Asian stock indexes rose on Wednesday and South Korean AI infrastructure company Elice surged almost 30%, rebounding from a post-IPO slump yesterday.
CHART OF THE DAY
Rockets and Starlink grab most of the headlines for SpaceX, but artificial intelligence contributed more than half of the $14.6 billion in third-quarter revenue it reported on Tuesday.
TODAY’S EVENTS TO WATCH
• US corporate earnings: Meta, Tesla, IBM, Texas Instruments
• US 20-year bond auction (1 p.m. EDT)
• ECB President Christine Lagarde speaks (12 p.m. EDT)
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