US Stocks Close: Dow Rises Over 500 Points Amid Mixed News on US-Iran Talks; Some Tech Stocks Rebound, Meta Falls for Fifth Day

TradingKey - On October 20 ET, oil prices pulled back from earlier gains and U.S. Treasury yields fell, easing the impact of recent pressure on AI-related stocks on market sentiment. Investors continued to monitor the situation in the Middle East, with conflicting reports on the progress of U.S.-Iran negotiations becoming an intraday focal point.

At the close, the Dow Jones Industrial Average rose 1.02% to 52,495.88; the Nasdaq Composite Index fell 0.02% to 26,424.82; and the S&P 500 Index rose 0.28% to 7,712.57.

Tech Stock Performance

Meta (META) fell for 5 consecutive trading days, closing at $693.937 today, down 1.63%.

It is reported that Meta is scheduled to release its third-quarter 2026 earnings report after the market closes on October 21, US Eastern Time. For investors, the key decider for this earnings report lies not on the revenue side, but on the expenditure side: whether full-year capital expenditure guidance remains unchanged, and whether AI investments can be proven to be translating into sustainable revenue growth.

Meta previously provided third-quarter revenue guidance of $61 billion to $64 billion, representing a year-over-year growth of 19% to 25% compared to $51.2 billion in the same period last year, with the midpoint of the range corresponding to a growth rate of about 22%, a noticeable slowdown from 28% in the second quarter. Institutional consensus expects revenue of approximately $63.3 billion to $63.9 billion, up 23% to 25% year-over-year, and earnings per share (EPS) of $5.938.

The performance of major tech stocks today is shown in the image below:

The Philadelphia Semiconductor Index fell 0.29% to 11,283.81 points. Among the 30 constituents, 11 rose and 19 fell.

Company News

OpenAI Reportedly Raising About $30 Billion, Valuation Could Top $1.4 Trillion

OpenAI is accelerating a new private funding round of about $30 billion, aiming to lock in investor commitments before Anthropic's expected public listing in mid-November, Reuters reported, citing people familiar with the matter. Upon completion of the funding, OpenAI's valuation could exceed $1.4 trillion. The report noted that both companies are competing for some of the same investor capital, prompting OpenAI to expedite its fundraising process. SoftBank, Abu Dhabi investment firm MGX, and other existing shareholders are in talks to participate in the round, though arrangements have not been finalized.

Anthropic Reportedly Posts $80.7 Billion Net Loss in First Half

Anthropic's S-1 filing showed the company generated $16.3 billion in revenue in the first half of 2026, compared with $1.1 billion in the same period last year, with a net loss of $80.7 billion in the first half versus a $13 billion loss a year earlier, The Wall Street Journal reported. Additionally, the company stated that it may spend $750 billion in the coming years to acquire more computing power, including transactions currently under negotiation.

Anthropic Said to Discuss Second Compute Deal with Nscale, Potentially Worth About $45 Billion

Anthropic is in talks with UK AI cloud provider Nscale for a second compute lease deal potentially worth about $45 billion, CNBC reported, citing people familiar with the matter. The agreement involves constructing a second 460-megawatt data center at the same campus in West Virginia, U.S., to provide additional computing power for Anthropic. Discussions between the two sides are ongoing, and the deal amount and final terms have not been finalized.

Qualcomm Plans Layoffs Following Annual Review Without Disclosing Affected Headcount

Qualcomm Chief Executive Officer Cristiano Amon said in an employee memo on Monday that the company will conduct global "performance-driven layoffs" following its annual review, without disclosing the number of affected positions. Amon stated that the move aims to strengthen a performance culture and address persistent underperformance. The company will adjust staffing by comprehensively considering business priorities, organizational needs, and employee skills and expertise to align with changing capabilities required for business expansion.

Industry & Macro News

US-Iran Talks Send Mixed Signals; US Diplomat Denies Imminent Deal

In early US trading on Tuesday, media reports indicated that the US had approved a proposal submitted by Pakistan's Army Chief of Staff to senior Iranian officials, which Iran had also preliminarily agreed to. However, a diplomat involved in the US-Iran negotiations stated that reports of an imminent agreement were inaccurate and that talks are still ongoing. This news is insufficient to confirm a final agreement, and the market continues to monitor further developments.

Wells Fargo Sentiment Indicator Triggers Buy Signal, Bullish on Megacap Cloud Providers and Infrastructure Software Stocks

Wells Fargo stated that its market sentiment indicator issued a "buy" signal for the first time since June 2025. The bank believes that the correction triggered by concerns over AI financing and high oil prices has made US stock valuations more attractive. A team led by Chief Equity Strategist Ohsung Kwon noted that historically, after this indicator generates a buy signal, the S&P 500 Index has an 89% probability of rising over the next three months, with an average gain of 6.5%. The bank expects semiconductor stocks to remain range-bound, while megacap cloud providers and infrastructure software stocks are expected to lead a market rebound. The team believes investor sentiment surrounding AI financing, the US midterm elections, and the situation in Iran may be overly pessimistic, while reminding that caution remains necessary in an environment of slowing earnings growth and liquidity pressure.