Article by: Tide Research
On Friday, the three major U.S. stock indices closed higher: the S&P 500 rose 0.59% to 7,811.54, the Nasdaq increased 0.64% to 27,366.17, and the Dow Jones gained 0.83% to 51,654.95. For the week, they rose 1.15%, 0.93%, and 0.64%, respectively. The communications sector experienced the largest volatility on Friday, as SpaceX agreed to acquire nationwide low-band spectrum, causing T-Mobile, AT&T, and Verizon to plunge collectively while tower stocks surged sharply. Lumentum, an optical communications company, reported that its optical component production capacity is fully booked through early 2029, sending its shares up over 5%. Technology stocks showed some rebound, but the Philadelphia Semiconductor Index still closed lower, as capital continued seeking clearer demand signals within the AI supply chain.
The three major indices closed higher, while the Nasdaq Composite declined against the trend.
The S&P 500 rose 0.59% to 7,811.54, the Dow Jones increased 0.83% to 51,654.95, and the Nasdaq climbed 0.64% to 27,366.17; all three indices posted gains for the week. The VIX fell 3.70% to 14.84.
Nine of the 11 sectors in the S&P 500 rose, with real estate up 1.88%, consumer discretionary up 1.69%, and healthcare up 1.58%; communication services fell 0.40%, and energy declined 0.18%. The number of advancing issues exceeded the number of declining issues on both the NYSE and Nasdaq, indicating that Friday’s rebound was not driven solely by a few large tech companies.
The seven giants showed divergent performance: Amazon rose 3.29%, Microsoft rose 2.38%, Tesla rose 2.05%, and Alphabet A rose 0.97%; Meta fell 0.31%, NVIDIA fell 0.52%, and Apple fell 1.11%. The Philadelphia Semiconductor Index declined 0.41% to 12,572.4. The Nasdaq Golden China Index rose 2.69% to 5,753.78.
U.S. Treasury yields edged higher, with the 2-year yield closing around 4.79% and the 10-year yield at approximately 5.24%. WTI crude oil futures settled at $91.85 per barrel, up 0.39%; Brent crude oil futures settled at $104.72 per barrel, up 0.42%. COMEX December gold futures settled at $4,216.30 per ounce, up approximately 1.4%.
SpaceX buys spectrum; telecom operators slump while tower stocks surge
SpaceX has agreed to acquire 800 MHz low-band spectrum licenses covering the entire United States from Grain Management, in a deal reportedly worth approximately $8 billion. Compared to higher-frequency bands, low-band signals travel farther and penetrate buildings more easily. SpaceX plans to use them for Starlink Mobile, enabling satellite connections to work alongside terrestrial infrastructure to serve mobile phone users.
The market immediately began reassessing the level of competitive pressure traditional carriers would face. T-Mobile fell about 13.3%, AT&T dropped about 9.8%, and Verizon declined about 8.8%. Investors are concerned that if SpaceX gradually addresses its indoor coverage gaps, it will not only compete for users in remote areas but also target the mobile customers of traditional carriers.
The tower stocks moved in completely opposite directions. Crown Castle rose approximately 15.6%, American Tower increased about 9.3%, and SBA Communications gained around 7.3%. Even though SpaceX primarily relies on its satellite network, improving urban and indoor coverage may still require cell towers, rooftop antennas, and other ground-based infrastructure.
This spectrum transaction still requires regulatory approval, and building the network will take time. Friday’s stock price movement reflects the market’s reassessment of future competitive dynamics, not proof that SpaceX has already built a nationwide mobile network.
Lumentum's capacity is booked through 2029; optical communications outperforms chips.
Lumentum’s CEO stated that part of the company’s optical component capacity has been sold through early 2029; demand for certain products may still exceed supply by approximately 70% next year. As AI data centers continue to expand and require more high-speed optical interconnect devices, customers are securing multi-year supply commitments in advance. Lumentum shares rose 5.23% on Friday.
However, the strength in optical communications did not lift the broader semiconductor sector; the SOX Index fell 0.41% that day, and NVIDIA also closed slightly lower. Microsoft and Amazon rose, indicating that the tech rally was also uneven. The market is distinguishing between two types of companies: those that have already seen order and capacity pressures, and those still waiting for demand to materialize.
On Friday, further clarification was provided regarding the OpenAI revenue figures that had stirred AI stock volatility the previous day. According to reports, the company’s annualized revenue as of the end of September was approximately $50 billion; the previously widely cited figure of $70 billion represents a target OpenAI aims to reach or exceed by the end of this year. The two figures correspond to different time points, and the year-end target should not be mistaken for revenue already achieved as of the end of September.
Consumer confidence has declined, and rumors about Apple orders remain mixed.
The University of Michigan’s preliminary October consumer confidence index fell to 46.3 from 48.1 in September. The current economic conditions sub-index declined to 44.7, while the one-year inflation expectation rose from 4.6% to 4.7%. Consumers’ assessment of current economic conditions weakened further, and concerns about continued price increases remained unaddressed.
Apple fell 1.11% on Friday. Reports indicate that the company has asked some suppliers to reduce production of components for the iPhone 18 Pro series. A representative from a supply chain company noted that orders for the Pro model have decreased slightly, while orders for the Pro Max have increased; overall order volumes appear largely unchanged so far. What is confirmed is that some orders have been adjusted—whether overall demand for the series is truly slowing will depend on further sales data.