Preview of US Stock Market | All three major stock index futures are rising together; Musk supports a merger of SpaceX and Tesla; Super Micro Computer surges in premarket trading.

**Premarket Market Moves** 1. On Wednesday, October 21, ahead of the U.S. market open, all three major U.S. stock index futures rose together. As of press time, Dow futures were up 0.16%, S&P 500 futures were up 0.28%, and Nasdaq futures were up 0.69%. 2. As of press time, Germany's DAX index was up 0.87%, the UK's FTSE 100 was up 0.06%, France's CAC 40 was up 0.72%, and the Euro Stoxx 50 was up 0.98%. 3. As of press time, WTI crude oil was up 0.68% at $98.49 per barrel. Brent crude was up 0.37% at $109.19 per barrel. **Market News** **Iranian Foreign Minister: Currently no reason to see progress in negotiations.** Iranian Foreign Minister Araghchi wrote that during last month's UN General Assembly he met with several foreign ministers and conveyed a consistent message: Iran seeks a fair and honorable agreement with the United States. To achieve this, the White House must show sincerity and a genuine willingness to completely end acts of aggression. He said Iran is firmly committed to seeking a peaceful resolution to the conflict in a dignified manner, but is also fully prepared for self-defense. Araghchi noted that Trump launched this war based on a fundamentally mistaken assumption about Iran's strength, and that Iran has no confidence whatsoever in the U.S. government's claimed sincerity about peaceful coexistence with Iran. Given that the White House has shown no willingness to reach consensus and instead threatens to resort to more violence, there is now little reason to expect progress. **Netanyahu pushes to restart military action against Iran; U.S. officials say "no rush."** According to reports, Israeli Prime Minister Netanyahu is pushing to resume large-scale military strikes against Iran. Earlier this month, he instructed the military to draw up an operational plan for a new large-scale offensive. Three people familiar with the matter said the Israeli military had previously formulated a plan for several days of bombing, originally scheduled for the weekend of October 10, with targets including civilian infrastructure such as power plants, nuclear facilities, and targets related to the Iranian regime. However, the operation was ultimately not carried out. The people said Trump's opposition to reigniting the conflict before the U.S. midterm elections on November 3 was the reason the operation was canceled. **French 10-year government bond yield hits 5%, a 24-year high.** On Wednesday, the French 10-year government bond yield reached 5%, a 24-year high, reflecting growing investor concerns about France's ability to restore its fragile fiscal position. Since the start of the year, central banks have been raising interest rates to counter surging energy prices, pushing global government bond yields broadly higher. Developed-market governments are also facing rapidly ballooning debt, and France's borrowing cost increase has outpaced most peers. Meanwhile, investors are demanding a premium of about 157 basis points to hold French government bonds over the benchmark 10-year German bund, close to the highest level since 2011. With the government weakened and trying to pass a budget in parliament and reduce the high deficit, French bonds are under considerable pressure. A hotly contested election next year and large-scale protests across France are also weighing on market performance. **BlackRock, Inc. CEO Fink: Slow data center construction will worsen inflation.** BlackRock, Inc. CEO Fink warned that as artificial intelligence (AI) demand accelerates, delays in data center construction could push up computing costs and pose a threat to economic growth. Fink said: "If we don't build these data centers, it will actually worsen inflation further, because computing costs are already very high. The faster we build data centers, the more computing power we can provide, and the faster we can bring down computing costs." Fink noted that slowing the pace of this technology's development would have broader consequences. "If we slow down the construction process of this technology, I think it would indeed jeopardize the economy." Fink has dismissed concerns about an "AI bubble," noting that the core issue is supply shortages and that demand growth has exceeded expectations. He also warned that if infrastructure construction lags, it could ultimately limit people's use of the technology. **Next wave of AI debt looms: tech giants' CDS surge to record highs, bond market braces.** On Tuesday, credit risk indicators for some large technology companies rose to record highs. Investors are preparing for a wave of bond issuance after earnings season and worry that the supply could further hit an already stressed debt market. ICE Data Services data showed that Oracle Corporation (ORCL.US) credit default swaps (CDS), widely seen as a barometer of AI debt risk, rose to a record 343 basis points at one point. Meta's credit risk indicator also hit an all-time high, rising 6.3 basis points to 114.8 basis points at one point before its Wednesday earnings release. Data shows that companies worldwide have borrowed more than $450 billion this year for AI-related research and development. Now, as tech companies report latest results and end so-called quiet periods, the market expects them to re-enter the bond market with large issuance sizes. **Trump pushes another AI power policy: requires large data centers to build their own power sources, promises electricity prices will "drop sharply."** U.S. President Trump called on large U.S. data centers to generate their own electricity, again pushing tech companies to pay for the power generation capacity needed to support AI infrastructure expansion. Trump wrote: "As President of the United States, I have been closely monitoring data centers and have reached a very firm conclusion. I require new, large, and some even giant data centers to generate their own electricity and feed or sell excess power back to local communities or the grid." He added that this approach is expected to bring a "sharp drop" in electricity prices. Trump also urged tech companies to provide financial incentives to communities hosting data centers, saying residents could receive dividends from these projects. **Survey: BOJ expected to raise rates to 1.50% in December, maintaining quarterly pace.** A Reuters survey shows most economists expect the Bank of Japan to raise interest rates to 1.50% in December, following hikes in June and September and extending the relatively fast quarterly pace of rate increases in this tightening cycleat the start of the cycle, the BOJ raised rates only once a year. A weak yen and Middle East conflict are pushing up energy and import costs, intensifying inflationary pressure in Japan. The number of respondents expecting at least two more rate hikes, reaching 2.0% by mid-next year, has increased. The yen has faced heavy selling pressure for most of this year, triggering intervention by Japanese authorities and the U.S. Treasury. The yen's recent relative stabilization also supports a December rate hike. **Stock News** **SpaceX (SPCX.US) Q3 revenue surges 161% YoY and turns profitable; superintelligence business revenue soars 830%.** On Tuesday, SpaceX reported third-quarter 2026 financial results. Driven by rapid expansion of its superintelligence business and continued growth in Starlink, the company's quarterly revenue surged 161% year over year and it turned profitable. Among them, superintelligence business revenue soared 830% year over year, becoming the company's largest revenue source for the first time. The report showed SpaceX third-quarter revenue reached $14.575 billion, up 161% from $5.576 billion a year earlier and about 87% from $7.814 billion in the second quarter. Net profit reached $4.404 billion, a major improvement from a net loss of $1.054 billion a year earlier, achieving a turnaround to profit. However, SpaceX third-quarter capital expenditure reached $19.593 billion, up about 185% from $6.880 billion a year earlier, mainly reflecting continued increased investment in superintelligence computing infrastructure. **Strong AI server demand; Super Micro Computer, Inc. (SMCI.US) quarterly revenue guidance far exceeds expectations.** Super Micro Computer, Inc. on Tuesday preliminarily reported quarterly results ahead of schedule that significantly beat Wall Street expectations, showing that the AI infrastructure investment boom is still driving rapid growth in server demand. Super Micro Computer, Inc. said in a statement that revenue for the quarter ended September 30 is expected to be between $18.5 billion and $19.5 billion, well above the analyst average estimate of $15 billion compiled by media. Based on the midpoint of the guidance range of $19 billion, revenue is expected to be about 26.7% above market expectations. At the same time, the company expects gross margin for the quarter to be between 12% and 12.5%. Although Super Micro Computer, Inc. has not yet released full quarterly financial data, the preliminary revenue performance already reflects strong demand in the AI server market. **NVIDIA Corporation (NVDA.US) Berlin GTC releases new AI investment signals.** DSX POD compresses on-site deployment cycles from six months to as fast as 14 days, with simultaneous capacity expansion across substrates, advanced packaging, testing, and optical interconnect supply chains. Jensen Huang urged Europe to accelerate AI adoption, and NVIDIA Corporation is further expanding into enterprise agents, industrial manufacturing, telecommunications networks, Siasun Robot&Automation, and autonomous driving, seeking to convert computing demand into actual revenue. But whether AI investment returns can be realized remains key to the market's ongoing revaluation. **Netflix (NFLX.US) Q3 revenue up 12% YoY; full-year advertising revenue forecast cut.** After the U.S. market close on Tuesday, streaming giant Netflix reported third-quarter 2026 financial results. Driven by subscriber growth, membership price increases, and higher advertising revenue, the company's quarterly revenue rose nearly 12% year over year, net profit surged 44% year over year, and operating margin further expanded. However, because the rollout of some advertising product features was slower than expected, Netflix cut its full-year advertising revenue forecast and slightly lowered its full-year revenue outlook. **United Airlines Holdings, Inc. (UAL.US) Q3 revenue hits record high, up more than 17% YoY to nearly $17.9 billion.** United Airlines Holdings, Inc. reported third-quarter 2026 financial results after the U.S. market close on Tuesday. Benefiting from strong passenger demand, higher fares, and growth in premium cabin business, the company's quarterly revenue rose 17.4% year over year, a record high. Although sharply rising fuel costs weighed on profitability, United Airlines Holdings, Inc. still expects fourth-quarter revenue growth to accelerate further, with a year-over-year increase potentially exceeding 20% and setting another record. **Driven by user growth and price increases, AT&T (T.US) posts record net internet subscriber additions and raises EPS guidance.** AT&T reported third-quarter 2026 financial results before the U.S. market open on Wednesday. The report showed revenue of $32.3 billion, up 5.3% year over year and above the market consensus; adjusted earnings per share were $0.65, above the expected $0.60. The company also raised its full-year 2026 adjusted EPS guidance to about $2.40 from $2.25$2.35. User growth and price increases were the two main drivers of this period's performance. AT&T noted that wireless service revenue growth came from user growth in low-penetration segments and converged accounts as well as price increases, but promotional discounts for new users partly offset the effect of the price increases. **Musk accelerates "superintelligence" ambition: SpaceX and Tesla, Inc. (TSLA.US) explore $3.5 trillion combination; ASML Holding NV ADR (ASML.US) expedites deliveries for Terafab.** After the U.S. market close on Tuesday, Musk revealed two pieces of information on SpaceX's third-quarter earnings call: first, ASML Holding NV ADR and other key equipment suppliers are already accelerating equipment deliveries for Tesla, Inc. and SpaceX's Terafab project. Second, SpaceX and Tesla, Inc. have each established special committees composed of independent directors to explore the possibility of a mergerthe most complete public statement so far on this potential transaction. **Amid data center industry turmoil, Singapore's DayOne reconsiders its U.S. IPO plan.** According to people familiar with the matter, as volatility in the data center industry intensifies, Singapore-headquartered DayOne Data Centers Ltd. is evaluating options for its U.S. initial public offering (IPO), including possibly delaying the listing or reducing the fundraising size. The people said the company has been waiting for the right time to launch the IPO and has also considered postponing the listing plan and proceeding after the market recovers. Other options include listing at a smaller size, with fundraising potentially between $2.5 billion and $3 billionabout half its original target. DayOne, whose investors include Coatue and Hillhouse Capital, is still in contact with potential investors and hopes to proceed with the listing as soon as market conditions allow. People familiar with the matter previously said the company initially planned to raise up to $5 billion through a listing as early as the fourth quarter and had sought a valuation of about $20 billion. **Micron (MU.US) Taiwan labor standoff sees a turn: Taichung union signs agreement to withdraw from mediation, AI memory supply gets temporary relief.** Micron Technology, Inc.'s subsidiary in China's Taiwan province, Micron Memory Taiwan, and its Taichung plant union said on Wednesday that the two sides had signed a labor agreement covering multiple issues and would therefore withdraw from mediation originally scheduled for October 22. The joint statement did not disclose the terms of the agreement, saying only that the company and the union would separately communicate details to affected employees in the coming days. **Key economic data and event previews** Beijing time 21:00: Bank of England Governor Bailey speaks Beijing time 22:30: U.S. Energy Corp. Information Administration (EIA) crude oil inventory change Beijing time 00:00 the next day: European Central Bank President Lagarde speaks **Earnings previews** Thursday morning: Tesla, Inc., Meta Platforms (META.US), IBM (IBM.US), Lam Research (LRCX.US), Texas Instruments Incorporated (TXN.US), Southwest Airlines Co. (LUV.US), SAP (SAP.US) Thursday premarket: Nokia Oyj Sponsored ADR (NOK.US), Spotify (SPOT.US), Procter & Gamble Company (PG.US), Union The Pacific (UNP.US), Valero Energy Corporation (VLO.US), American Airlines Group Inc. (AAL.US)