US stock indexes rose in premarket trading on Friday as oil prices retreated following statements that the US will not attack Iran before midterm elections. Meanwhile, SpaceX secured a nationwide low-band spectrum deal, putting pressure on major telecom carriers including AT&T, Verizon, and T-Mobile.
Wall Street stock indexes were set for a higher open on Friday as oil prices pulled back amid easing Middle East supply concerns. US President Donald Trump stated on Thursday that the country will not attack Iran before the US midterm elections next month, soothing fears that the conflict could further disrupt global energy markets. Brent crude fell more than 1% to trade around $103 a barrel, while WTI retreated toward $90, according to the outlet reported on the market open.
Bond yields remained calmer, with the benchmark 10-year Treasury yield steady at 5.24% on Friday, holding close to the 24-year high of 5.364% reached earlier in the week. Despite pulling back over the previous two sessions, the benchmark S&P 500 and the tech-heavy Nasdaq headed for weekly gains, driven by optimism around an AI-driven third-quarter earnings season that pushed both indexes to record highs earlier in the week. The blue-chip Dow was also on track for slim weekly gains, while the equal-weighted S&P 500 index prepared to snap a seven-week losing streak.
SpaceX Spectrum Acquisition Shakes Telecom Valuation
While equities found relief, telecommunication shares faced sharp downward pressure after SpaceX struck a deal to acquire a nationwide low-band spectrum portfolio from Grain Management. The transaction positions Starlink, the company’s satellite broadband business, to operate as a standalone cellular network in the United States rather than relying solely on a direct-to-cell add-on partnership model with existing carriers.
Low-band spectrum penetrates buildings effectively, granting satellite operators the property needed to compete directly with terrestrial networks. Before this nationwide purchase, SpaceX secured US spectrum via an approved EchoStar license transfer and lined up international Starlink Mobile partners including SoftBank, NTT Docomo, and Spark NZ. Analysts noted that the move transforms a cooperative framework into a direct orbital challenge to traditional carriers.
Market reaction to the spectrum acquisition was immediate across telecom equities. SpaceX stock climbed 4% in morning trading to $166.89.
- T-Mobile US shares dropped 7.2% in premarket trading.
- AT&T stock fell 6.9% to $22.97.
- Verizon Communications shares declined 5.7% to $43, down 7% overall as the market priced in a well-funded competitor for wireless subscribers.
Despite the sell-off, some analysts argued that the market reaction may be premature. Citi analyst Michael Rollins asserted that the telecom sell-off looked excessive, noting that a meaningful financial impact from SpaceX is unlikely to emerge before at least 2029. Similarly, AT&T chief executive John Stankey, speaking at the Goldman Sachs Communacopia conference in September, characterized Starlink as a strong solution for rural territories, airlines, and connected vehicles, framing satellite service as largely complementary through wholesale arrangements.
AI Demand and Chip Stocks Attempt Market Recovery
Nvidia climbed 1.6% premarket, Tesla rose 1.3%, and Amazon.com and Alphabet saw modest gains. Market participants are also turning their attention toward the upcoming corporate earnings reporting cycle, where major banks will release quarterly results to provide clearer indicators on consumer borrowing trends.
The banks are great to figure out: are people borrowing, and what the situation looks like right now …
Kim Forrest, chief investment officer at Bokeh Capital Partners