Stock market today: Dow, S&P 500 and Nasdaq futures slide after heavy tech selloff

Brian Sozzi of Yahoo Finance reports:

Don’t expect SpaceX (SPCX) to surprise investors like Meta (META) did this week by announcing it would issue a new class of non-voting shares to help fund its AI development.

“Importantly, in our discussion with management, SPCX also stated that it has no plans to raise its equity,” JPMorgan analyst Doug Anmuth wrote in a new post-earnings note released Friday. “Capital requirements are at the forefront across the market, and SPCX has indicated that it has a number of capital reserves available on the debt side.”

SpaceX gave investors a taste of what could happen in debt financing in its earnings report this week.

Learn more here.

Brian Sozzi of Yahoo Finance reports:

Elon Musk’s SpaceX (SPCX) may be about to send another message to telecom giants: We’re seriously coming to your rescue.

The company plans to buy 80,000 cell sites across the United States, Bloomberg reported Friday. SpaceX is reportedly in talks with two of the companies, Crown Castle and American Tower, among the largest cell tower owners.

“Committing about $30 billion to spectrum is serious enough. Committing to 80,000 macro sites could be a point of no return,” said Laurent Yoon, an analyst at Bernstein. “This is a significant number, largely consistent with the scale required for a nationwide terrestrial wireless network. It remains unclear whether SpaceX ultimately leases anything close to this figure, but the reported scope suggests a much higher level of commitment than spectrum accumulation alone.”

Shares of AT&T (T), Verizon (VZ) and T-Mobile (TMUS) saw sharp declines in pre-market trading.

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Thursday’s sell-off in technology products sent investors rushing into bonds, pushing the 10-year Treasury yield (^TNX) to its biggest one-day decline in more than two years and below 5% again.

Behind the move is a shift in rate expectations, as long-term yields have fallen. With the Federal Reserve scheduled to meet next week on October 28, investors were bracing for a rate hike to combat fears of oil-induced inflation.

But those bets quickly faded, with the federal funds futures market estimating the chances of a rate hike in October at around 5%, according to Bloomberg data, down from 15% earlier this week and 37% in late September.

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Brian Sozzi of Yahoo Finance reports:

Tesla’s (TSLA) surprise $5 billion cut in its capital spending plans during its latest earnings call hasn’t shaken investor confidence in the long-term potential of a large Cybercab network.

Perhaps some short-term confidence has been lost in the humanoid Optimus as Tesla faces design challenges, but not in the Cybercabs.

Case in point: Even reasonable modeling assumptions on Cybercab from Morgan Stanley analyst Andrew Percoco, who has an equal weight rating on the stock, still project the fleet size to reach 5 million by the end of 2040. This will be fueled by strong growth over the next three years, as shown in the chart below.

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