Nasdaq opens higher as oil retreats, AI stocks recover and telecom shares slide

• Oil prices fell over 1% after Trump eased Iran attack concerns, though Brent crude remained above $100/barrel and bond yields stayed near 24-year highs at 5.37%
• OpenAI's actual annualized revenue of $52 billion (vs. previously reported $68 billion) sparked AI stock volatility, with Nvidia recovering while concerns persist about AI infrastructure financing needs
• SpaceX's nationwide low-band spectrum deal via Starlink hammered telecom stocks: T-Mobile down 9%, AT&T down 7.7%, and Verizon down 6.3% on competitive pressure fears

Market Summary: Nasdaq Opens Higher on Oil Retreat and AI Recovery

Market Performance:

US markets opened positive on Friday, with the Nasdaq Composite gaining 172 points, the S&P 500 up 0.35%, and the Dow Jones up 0.24%. This follows two consecutive sessions of losses. The S&P 500 tracked toward a 0.6% weekly gain, while the equal-weighted S&P 500 appeared set to end a seven-week losing streak.

Oil and Macro Environment:

Brent crude declined over 1% but remained above $100 per barrel after President Trump stated the US would not attack Iran before midterm elections, easing Middle East escalation concerns. The 10-year Treasury yield held near its 24-year high of 5.37% reached Wednesday, maintaining inflation and Federal Reserve rate hike concerns.

AI and Technology Sector:

AI and semiconductor stocks rebounded after Thursday's sharp decline triggered by OpenAI revenue clarification. OpenAI's annualized revenue stood at $57 billion at end-September, below the widely reported $68 billion figure that included gross partner revenue. Nvidia and Lumentum gained ground, with Lumentum reporting AI-driven optical orders extending through 2029.

Telecom Sector Under Pressure:

SpaceX's nationwide low-band spectrum acquisition via Starlink severely impacted wireless carriers. T-Mobile dropped 9%, AT&T fell 7.7%, and Verizon declined 6.3% on heightened competitive concerns.

Other Notable Moves:

Humana surged 16% on positive Medicare Advantage ratings data. Apple rose 3.1%, while Delta Air Lines fell 2.43% after cutting annual profit guidance due to elevated fuel costs.

Outlook:

Third-quarter earnings season accelerates next week with major banks reporting, providing crucial insights into economic health and corporate performance.