US stocks rise as oil prices ease but SpaceX deal hits telecoms

Wall Street rose on Friday morning as a pullback in oil prices relieved pressure on the markets, though a major wireless spectrum deal by SpaceX sent shockwaves through the telecommunications sector.

The Dow Jones Industrial Average opened up 136.24 points, or 0.27%, at 51,367.88. The S&P 500 climbed 25.23 points, or 0.32%, to 7,790.59, while the tech-heavy Nasdaq Composite gained 130.99 points, or 0.48%, to open at 27,324.33.

Easing energy worries push indexes higher

The primary driver for the broader market gains was a drop in crude oil. Brent crude fell about 1%, though it remained above $100 a barrel. The decline came after Donald Trump stated that the United States would not launch an attack on Iran before the upcoming midterm elections, which eased immediate worries about severe disruptions to Middle Eastern oil supplies.

SpaceX sends telecom rivals sliding

But the big story under the surface was in telecom. Traditional wireless carriers suffered heavy losses after news emerged that SpaceX had reached an agreement to acquire a nationwide portfolio of low-band spectrum. The deal signals that Elon Musk's rocket and satellite firm is preparing to launch a direct challenge to established mobile networks.

Investors reacted swiftly. T-Mobile US shares plunged 9.1%, AT&T fell 7.4%, and Verizon dropped 6.3%. In contrast, SpaceX shares rose 3.2% on the news, reflecting expectations that the company could soon offer direct-to-cell services on a massive scale.

Rebounds, falls, and earnings on the horizon

Elsewhere, megacap technology stocks saw modest gains. Tesla rose 1.8%, Nvidia gained 1.5%, and Microsoft added 1.2%. Semiconductor shares also recovered some ground after being hit earlier in the week by reports that OpenAI's annualised revenue had missed previous projections.

There were also sharp moves among individual companies. Health insurer Humana saw its shares surge 16.6% after government data revealed that 95% of its members are enrolled in highly rated Medicare Advantage plans for 2027. Conversely, Apple shares fell 2.2% following reports that the tech giant has asked suppliers to cut component production for its iPhone 18 Pro and Pro Max models due to rising memory costs and weaker consumer demand. Delta Air Lines fell 3% after cutting its annual profit forecast midpoint by nearly a quarter.

Traders are now preparing for the upcoming corporate earnings season, which begins next week with reports from major US banks. Bokeh Capital Partners chief investment officer Kim Forrest noted that the bank reports will offer crucial clues about consumer borrowing and the health of the economy, helping clarify what the Federal Reserve might do next.