U.S. stocks edged higher by midday Friday, with the Nasdaq rebounding from Thursday's setback sparked by concerns over OpenAI's weaker-than-expected revenue, while the wireless carriers were hammered by a Space Exploration Technologies Corp. (NASDAQ:SPCX) spectrum deal.
SpaceX said Thursday it acquired a nationwide 800 MHz spectrum portfolio from Grain Management, a deal that still needs FCC approval. The Wall Street Journal reported a price of $8 billion in cash.
The FCC also approved plans for 15,000 Starlink Mobile Gen2 satellites, and SpaceX's COO said the company plans to target existing wireless customers.
T-Mobile US Inc. (NASDAQ:TMUS) tumbled 12.2%, AT&T Inc. (NYSE:T) sank 11.2% and Verizon Communications Inc. (NYSE:VZ) lost 11.1%. Charter Communications Inc. (NASDAQ:CHTR) fell 5.9% and Comcast Corp. (NASDAQ:CMCSA) dropped 3.0%, trading in sympathy with the group. Millicom International Cellular S.A. (NASDAQ:TIGO) slid 6.7% and AST SpaceMobile Inc. (NASDAQ:ASTS) plunged 14.6%.
The S&P 500 rose about 0.5% to 7,801 and the Dow Jones Industrial Average advanced 318 points, or 0.6%, to 51,550.
The Nasdaq 100 gained about 0.4% to 30,844. The Russell 2000 rose 0.4% to 2,804.
Oil Holds Steady, Yet US Consumers Turn More Pessimistic
Late Thursday on Truth Social, President Donald Trump said, "We will not be attacking Iran at any time prior to the midterm elections," adding that the U.S. is "having productive discussions" with Tehran.
Iran's foreign minister said Tehran is reviewing the U.S. response to its seven-day plan to reopen the Strait of Hormuz and will reply within days, leaving investors with a partial, but far from complete, easing of Middle East supply fears.
Oil held near the lower end of its recent range. West Texas Intermediate crude traded flat at around $91 per barrel, roughly 11% below its start-of-month level, while Brent hovered near $104.
The 10-year Treasury yield edged up about 2 basis points to 5.26% after falling roughly 6 basis points on Thursday from its highest level since 2002. Markets price about an 81% chance the Federal Reserve holds rates steady this month, with a December hike still being debated.
Data showed a gloomy consumer.
The University of Michigan's preliminary October sentiment index fell to 46.3 from 48.1 in September, missing expectations and marking the second-lowest reading on record. The current conditions gauge dropped to a record-low 44.7.
Year-ahead inflation expectations ticked up to 4.7% from 4.6%, the highest since May, while five-to-10-year expectations rose to 3.5% from 3.4%.
SPDR Gold Shares (NYSE:GLD) gained 1.5% as spot gold futures jumped about 1.4% to roughly $4,190 per ounce, though the metal remains about 3% below its start-of-month level. The iShares Silver Trust (NYSE:SLV) advanced 3.0%.
Bitcoin (CRYPTO: BTC) bounced 1.9% over 24 hours to about $82,900, recovering from a drop below $81,000 on Thursday that followed a roughly 4.5% slide from Wednesday's close near $85,600.
