To The Moon

The AI scare fades. The telecom war begins.

After Thursday’s AI-driven sell-off, Wall Street came roaring back on Friday. Investors reassessed concerns surrounding OpenAI’s growth and stepped back into the market, helping major indexes recover.

• Nasdaq Composite: +0.64%

• $S&P 500(.SPX)$ : +0.59%

• Dow Jones: +0.83% (+423 points)

The Nasdaq recovered from Thursday’s 1.3% drop and secured its fourth consecutive weekly gain. The S&P 500 finished the week up 1.2%.

The message? One day of fear wasn’t enough to derail the broader rally.

OPENAI FEARS, BUY THE DIP?

Reports about slower-than-expected revenue growth at OpenAI rattled confidence in AI spending. But the story proved more nuanced, giving investors enough reassurance to buy the dip.

$Oracle(ORCL)$ whose future revenue is closely tied to its OpenAI deal, surged 4.2%, recovering most of Thursday’s 5.5% decline.

AI sentiment remains a major market driver, and headlines can still trigger sharp swings.

SPACEX SHAKES UP TELECOM

SPCX

The biggest shock came from an unexpected corner. $SpaceX(SPCX)$ is moving closer to offering mobile phone services in the US after acquiring a nationwide portfolio of low-band spectrum.

Traditional telecom stocks took a brutal hit:

• $T-Mobile US(TMUS)$ : −13.3%

• AT&T: −9.9%

• Verizon: −8.8%

But the infrastructure behind mobile networks could benefit. American Tower jumped 9.3%, while Crown Castle surged 15.6%.

One company’s expansion could threaten established operators while creating new opportunities elsewhere in the ecosystem.

WHAT COMES NEXT?

Investors are heading into a critical week for corporate earnings and inflation data.

Third-quarter S&P 500 earnings growth is expected to reach 29.6% year over year, according to FactSet estimates, potentially the third consecutive quarter above 25%.

FactSet

Key events to watch:

• Tuesday: Citigroup, $JPMorgan Chase(JPM)$ Chase, Goldman Sachs and Wells Fargo report earnings.

• Wednesday: US Consumer Price Index (CPI), alongside earnings from Bank of America, BlackRock and Morgan Stanley.

• Thursday: Producer Price Index (PPI), retail sales and earnings from major companies including TSMC.

THE BOTTOM LINE

Friday’s rebound shows that investors are still willing to buy weakness, but beneath the surface, leadership is shifting. AI-related uncertainty remains, while SpaceX’s expansion demonstrates how quickly disruption can create winners and losers across entire industries.

The real test now: Can strong corporate earnings sustain the rally while stubborn inflation keeps pressure on the Federal Reserve?

Next week, earnings and CPI could determine whether this comeback has real strength, or whether the market is simply catching its breath before the next volatility spike…

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.

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