U.S. markets rebound as oil retreats and SpaceX spectrum deal reshapes telecom trade

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US markets rebound, SpaceX deal

Highlights

U.S. equity markets rebound with the Nasdaq Composite up 0.77% and S&P 500 up 0.34% as crude retreats and investor sentiment improves.
Delta Air Lines shares fall over 3% after earnings miss, guidance cut, and 62% increase in fuel costs, pressuring major U.S. airline stocks.
SpaceX rises 3.2% on acquisition of 800 MHz spectrum licenses from Grain Management, sending AT&T down 7.1%, T-Mobile down 9.4%, and boosting Crown Castle by 16.3%.

Trading drivers behind the rebound

As reported by Cboe Global Markets, early trading points to a firmer close for Wall Street after several sessions marked by pressure on equities, crude oil and Treasury yields. Even with the improvement, the gains are not expected to fully reverse the week’s losses.

Crude prices are moving lower after President Trump says he sees no reason for an attack on Iran before the mid-terms and that talks to end the conflict are underway again. WTI crude is flat in the mid-$90-a-barrel range, while Brent is down 0.48% in the high $103-a-barrel range.

Treasury yields are still edging higher, with the benchmark at 5.26%, keeping pressure on borrowing costs for mortgages, auto loans and credit cards. Technology shares are also rebounding after Bloomberg clarifies that OpenAI’s reported $50 billion in annualized revenue reflects a projection based on a shorter period through the end of September, while previously cited $70 billion figures included gross revenue from partners rather than net revenue.

The shift in sentiment is helping lift the Nasdaq Composite by 0.77%, while the S&P 500 is up 0.34%. The Dow Jones Industrial Average is also trading modestly higher after avoiding the sharpest losses in the previous session.

Sector pressure hits airlines and carriers

Airline stocks are under pressure after Delta Air Lines posts earnings below Wall Street expectations and cuts its forward guidance, citing a 62% jump in fuel costs despite solid travel demand. Delta shares are down more than 3%, while United Airlines falls 1%, American Airlines loses 1.3% and Southwest Airlines slips 0.89%.

SpaceX shares are rising 3.2% after the company agrees to acquire several 800 MHz low-band spectrum licenses from Grain Management. According to Reuters, the purchase supports plans for a hybrid Starlink Mobile network combining terrestrial infrastructure with satellite connectivity, a move that is weighing on established wireless operators.

AT&T shares are down 7.1%, T-Mobile is off more than 9.4% and Verizon is losing 6.5%. At the same time, the development is boosting cell-tower companies seen as potential infrastructure beneficiaries, with Crown Castle up 16.3%, American Tower higher by 7.67% and SBA Communications advancing 7%.

In our earlier article on Nasdaq-100 options positioning and the AI trade, we highlighted how concerns around OpenAI revenue momentum and higher rates were pushing traders to seek more downside protection. We noted that the QQQ put-call ratio had climbed to its highest level since late June, signaling a more defensive stance in tech even as mega-cap shares remained near highs.

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