Stock Futures Slip as SpaceX Report Hits Telecom Stocks
Stock futures SpaceX telecom news drove Friday’s premarket action, as Wall Street futures ticked lower after a sharp selloff in AI-linked stocks — and telecom shares slid on fears of new competition from SpaceX.
AT&T, Verizon, and T-Mobile were down more than 4% in premarket trading after a report said SpaceX was in talks with cellular infrastructure companies about launching a nationwide wireless carrier program, Reuters reported. U.S. cell tower operators, however, gained from the news, with Crown Castle up 8.6% and American Tower up 6.1%.
At 7:19 a.m. ET, Dow E-minis were down 314 points, or 0.59%, while S&P 500 E-minis were down 0.25% and Nasdaq 100 E-minis were down 0.12%, according to Reuters.
SpaceX shakes up telecom
SpaceX is reportedly seeking at least 80,000 cell sites to expand Starlink Mobile, with Crown Castle among the tower companies in direct talks with SpaceX over cell-site access, according to Investing.com. Crown Castle gained as much as 12% in premarket trading, with SBA Communications and American Tower also rising, according to Swingfolio data.
The prospect of a credible fourth nationwide wireless carrier forces incumbents to defend customers, pricing, and network economics — and investors responded by punishing carrier stocks. SpaceX shares themselves gained about 1.5–2.2%.
Bank of America and PhillipCapital raised their price targets on SpaceX following the report, according to Invezz.
AI selloff hangs over the market
Caution prevailed after Thursday’s sharp selloff in AI-linked stocks over concerns about the sector’s massive funding requirements. The tech-heavy Nasdaq fell nearly 3% on Thursday — its steepest drop since early June — while the S&P 500 closed down 1.21% at 7,663.43 and the Dow held nearly flat at 52,867.98, according to Reuters.
The slide accelerated after Meta fell nearly 8% when the Facebook parent reported its first cash outflow in more than a decade amid concerns over its AI-related expenditures. AI-related shares had swung sharply all week — first coming under pressure over CoreWeave’s debt burden and the cost of financing AI investment, then rallying Wednesday after upbeat results from SpaceX and Super Micro, before reversing on Thursday.
“Investors are becoming increasingly demanding when it comes to AI investment, with attention shifting from revenue growth towards profitability, capital expenditure and tangible returns,” said Daniela Hathorn, senior market analyst at Capital.com, according to Reuters.
Earnings in focus
American Express raised its full-year profit forecast on revenue up 9% to $20.1 billion, Reuters reported, though the stock slipped in premarket trading. Investors are now looking ahead to next week’s earnings from Microsoft, Alphabet, and Amazon.
S&P 500 third-quarter profit growth is now forecast at 32.3%, up from 30.7%, according to LSEG data cited by Reuters — a sign that earnings season has broadly surprised to the upside even as AI spending doubts linger.
Oil and rates add pressure
Brent crude held near a more than five-month high above $114 a barrel amid Middle East supply concerns, adding to inflation worries ahead of the Federal Reserve’s policy meeting next week. WTI oil futures rose 1.6% to around $101.10 a barrel.
The yield on the 10-year Treasury note was at 5.01% Friday morning, up from 4.96% Thursday — which had marked its first close below 5% in a month, according to Investopedia. Gold futures slipped slightly to around $4,045 an ounce, and bitcoin was little changed near $81,400–81,658.
- Dow futures: down ~0.59–0.72%
- S&P 500 futures: down ~0.2–0.3%
- Nasdaq 100 futures: roughly flat to slightly lower
- Telecoms: AT&T, Verizon, T-Mobile down 4%+ premarket
- Tower stocks: Crown Castle +8.6%, American Tower +6.1%
- Thursday close: Nasdaq −2.60%, S&P 500 −1.21%, Dow +0.02%
- To watch: Fed meeting next week; Microsoft, Alphabet, Amazon earnings
What’s next
The Nasdaq is on track for a weekly loss while the S&P 500 and Dow remain higher for the week, supported by defensive sectors. RadioSea will track the closing bell and Monday’s open as investors digest oil, earnings, and the Fed.