U.S. stocks struggled to regain their footing on Friday as Wall Street remained under pressure following Thursday's steep technology selloff. The Dow Jones Industrial Average dropped roughly 536 points, or 1%, while the S&P 500 declined 0.4%. The Nasdaq Composite slipped 0.1%, holding up better than the broader market as some technology stocks stabilized following the previous session's losses.
The weakness came as investors continued questioning the enormous costs of artificial intelligence expansion while rising oil prices added to inflation concerns. Telecommunications stocks also came under pressure following reports that SpaceX could enter the nationwide wireless market, while investors turned their attention toward another major round of Big Tech earnings next week.
Market Movers:
- Crown Castle (CCI) +12.6%: Shares surged following reports that SpaceX was discussing a nationwide wireless service with cellular infrastructure companies. Investors viewed the potential expansion as an opportunity for tower operators to secure additional business.
- American Tower (AMT) +6.9%: Shares climbed alongside Crown Castle as investors considered the infrastructure requirements of a potential SpaceX wireless network. The prospect of additional demand for cellular towers helped lift the sector despite broader market weakness.
- SpaceX (SPCX) +1.2%: Shares recovered modestly following Thursday's sharp retreat as reports emerged about the company's possible expansion into nationwide wireless services. The development raised the possibility of additional competition with established telecommunications providers.
- Comfort Systems USA (FIX) -10.1%: Shares tumbled despite the company reporting third-quarter revenue and earnings above Wall Street expectations. The decline suggested investors were reassessing the stock's valuation and growth outlook following its earlier gains.
- Bloom Energy (BE) -11.3%: Shares fell sharply even after the company raised its fiscal 2026 outlook. The selloff reflected continued volatility among companies tied to the AI infrastructure and energy investment boom.
- SLB (SLB) +2.4%: Shares advanced after the oilfield services company reported third-quarter profit above analysts' expectations. Higher crude prices also supported sentiment toward energy-related businesses.
- Western Digital (WDC) -1.8%: Shares declined despite the data storage company issuing an encouraging second-quarter revenue forecast. The stock remained caught in broader selling pressure affecting technology and AI-related investments.
SpaceX Wireless Plans Shake Up Telecom Stocks
Telecommunications became one of Friday's biggest stories after reports suggested SpaceX was discussing plans for a nationwide wireless carrier with cellular infrastructure companies. Shares of AT&T, Verizon and T-Mobile fell between 3% and 4.7% as investors weighed the possibility of another major competitor entering the U.S. wireless market.
Tower operators moved in the opposite direction, with Crown Castle and American Tower rallying on expectations that an expanded wireless network could create additional demand for infrastructure. The divergence highlighted how a single industry development can create sharply different outcomes for companies operating within the same sector.
AI Spending Concerns Continue to Pressure Wall Street
Technology stocks remained unsettled after Thursday's sharp selloff, when the Nasdaq plunged 2.6% and the S&P 500 dropped 1.2%. Meta's disappointing market reaction intensified concerns about whether technology companies can justify their enormous AI infrastructure commitments. Investors have become increasingly sensitive to the gap between spending on data centers and computing capacity and the profits those investments are expected to generate.
The pressure has extended to semiconductor companies, AI cloud providers and businesses supplying the industry's expanding infrastructure. Attention now turns to Microsoft, Alphabet and Amazon, which are scheduled to report earnings next week. Their results could provide a clearer picture of whether demand for AI services remains strong enough to support the industry's aggressive spending plans.
Oil Prices Rise as Investors Prepare for the Fed
Energy prices remained another source of concern Friday, with Brent crude trading near five-month highs as tensions in the Middle East threatened global oil supplies. The rally supported energy stocks but raised concerns that higher fuel costs could keep inflation elevated and squeeze consumer spending.
Meanwhile, investors were preparing for next week's Federal Reserve policy meeting. Markets broadly expected policymakers to leave interest rates unchanged, although persistent inflation risks could complicate the outlook for future decisions. Despite the volatility, corporate earnings expectations remain relatively strong. Analysts now forecast third-quarter S&P 500 earnings growth of 32.3%, up from an earlier estimate of 30.7%, according to LSEG data.
Looking Ahead
Wall Street faces another important test next week as Microsoft, Alphabet and Amazon report earnings and the Federal Reserve announces its latest interest rate decision. Investors will be looking for reassurance that AI spending can translate into sustainable profits without placing excessive pressure on corporate finances. Oil prices, geopolitical developments, and the potential competitive impact of SpaceX's wireless ambitions will also remain in focus. With the Nasdaq struggling to recover from its latest selloff, the coming earnings reports could play a decisive role in determining whether technology stocks stabilize or face another round of selling.
