U.S. Stocks Mixed as Strong Earnings Offset AI Credit Fears

By the Editorial Team · Wednesday, October 21, 2026

U.S. stock markets had mixed performances Wednesday, with the Dow and S&P 500 rising on strong corporate earnings while the Nasdaq edged down amid concerns over debt-fueled AI investments. Notable moves included Salesforce’s $5.66 billion acquisition of Braze, a sharp drop in South Korea’s cloud firm Elice shares, and housing data showing a significant decline in starts and pending sales due to rising mortgage rates.

U.S. stock markets showed mixed results Wednesday as robust corporate earnings helped offset concerns about risks tied to a debt-driven surge in artificial intelligence investments. The Dow Jones Industrial Average climbed 529.85 points, or 1.02%, while the S&P 500 edged up 0.28%. In contrast, the Nasdaq composite slipped 0.02%.

The Treasury market saw mostly lower yields amid a decline in oil prices, which tempered inflation expectations. The yield on the benchmark 10-year Treasury note fell to 5.116%, and the 30-year bond yield dropped to 5.425%. Meanwhile, the two-year Treasury yield rose slightly to 4.785%. The U.S. dollar weakened against a basket of currencies following a reduction in civil unrest in France. Gold futures declined $16.60, or 0.4%, to $1,822.40 an ounce.

West Texas Intermediate crude for December delivery lost 72 cents, or 0.7%, settling at $97.82 a barrel. The commodity reversed early gains after reports emerged that mediators had proposed a framework to revive talks between Iran and the United States.

Data released on the housing sector highlighted mounting pressure from rising mortgage rates. Housing starts plummeted 5.2% to an annual rate of 1.22 million units in September. At the same time, pending home sales dropped to their lowest level since 2001, according to the National Association of Realtors.

In the technology sector, shares of cloud-computing firm CoreWeave experienced volatility, ultimately rising 1.7% after falling as much as 6.4% earlier in the session. The company has taken on significant debt to expand its data-center capacity, raising investor concerns over the impact of climbing interest rates on its borrowing costs and profitability. Industry analysts noted that while CoreWeave is smaller than major hyperscale providers, its financial strategies could serve as an indicator for other firms in the tech space.

South Korean cloud services newcomer Elice faced a challenging market debut, with its shares plunging more than 30%. In merger news, Salesforce announced a deal to acquire customer-engagement platform Braze for approximately $5.66 billion, including debt. Braze shares soared 52% to $45.57 on the news.

Earnings reports from industrial and consumer companies were largely positive but yielded mixed investor reactions. Shares of 3M rose 5.8% after the company raised its full-year profit outlook, reflecting optimism about its AI-related investments. Conversely, General Motors shares dropped 6.8% as the automaker cited higher commodity and logistics expenses that hurt third-quarter results. GE Aerospace shares declined 3.7% despite an improved growth forecast for the year. Defense contractor Northrop Grumman stood out with a 4.6% increase, boosted by a sales growth projection of 5% to 7% for 2027.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.