Nasdaq opens higher as oil retreats, AI stocks recover and telecom shares slide
US stocks opened higher on Friday as oil prices retreated following easing concerns about further escalation in the Middle East, while investors assessed the outlook for artificial intelligence stocks and the impact of SpaceX’s latest spectrum deal on telecom companies.
The Nasdaq Composite gained 172 points while the S&P 500 was up 0.35%. Dow Jones Industrial Average traded up 0.24%.
The moves followed two consecutive sessions of losses for major indexes, with technology stocks under pressure after a report on OpenAI’s annualised revenue raised questions about the AI investment boom.
Oil retreats as Middle East concerns ease
Oil prices fell after US President Donald Trump said the country would not attack Iran before next month’s midterm elections, easing some concerns about further disruptions to global energy supplies.
Brent crude declined by more than 1% but remained above $100 a barrel. Meanwhile, the 10-year US Treasury yield was steady at 5.25%, close to the 24-year high of 5.37% reached on Wednesday.
Higher oil prices have added to concerns about inflation and the possibility of further Federal Reserve rate increases.
Investors are also preparing for the third-quarter earnings season to gather pace next week, with major US banks scheduled to report results.
The S&P 500 was on track to gain around 0.6% for the week, while the Dow Jones Industrial Average and Nasdaq Composite were roughly flat.
The equal-weighted S&P 500 was also poised to end a seven-week losing streak.
AI and chip stocks recover after OpenAI revenue report
Technology and semiconductor stocks moved higher in trading after declining sharply on Thursday.
OpenAI told investors that its annualised revenue reached around $50 billion at the end of September, below the $68 billion figure widely reported last month.
The earlier estimate reportedly included gross revenue from partners, complicating comparisons.
The update triggered a sell-off in AI-linked stocks, with the Nasdaq Composite falling more than 1% on Thursday.
Investors also remain concerned about the scale of debt and equity financing required to support AI infrastructure spending.
On Friday, Nvidia shares rose 0.47%, while Tesla gained 2.63%. Amazon and Alphabet edged higher, and the iShares Semiconductor ETF, an exchange-traded fund tracking US semiconductor stocks, advanced 0.78%.
Lumentum shares gained 7%, while KLA rose 2%, as technology stocks broadly recovered.
SpaceX spectrum deal weighs on telecom stocks
SpaceX shares climbed 2.9% in trading after the company agreed to acquire a nationwide low-band spectrum portfolio, strengthening its position in mobile connectivity through its Starlink satellite network.
The deal raised concerns about increased competition for established US wireless operators. T-Mobile US shares fell 9%, AT&T declined 7.7%, and Verizon slipped 6.3%.
Other company-specific moves included a 16% gain for Humana after government data showed that 95% of its Medicare Advantage members were enrolled in plans rated four stars or higher for 2027.
Apple shares fell 2.5% following a report that the company had asked some suppliers to reduce production of components for its newly launched iPhone 18 Pro models amid rising memory-chip costs and concerns about consumer demand.
Delta Air Lines dropped 2.43% after lowering its annual profit forecast, citing fuel costs that were outpacing gains from fares.
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