SpaceX Spectrum Deal Sends Telecom Stocks Sharply Lower

Telecom shares suffered their worst session in years on Friday after SpaceX agreed to buy a nationwide portfolio of low-band wireless spectrum. The S&P 500 telecom services index fell 9.7%, its biggest one-day drop since March 2020.

T-Mobile US dropped 12.2%, AT&T fell 9.7% and Verizon slid 9.1%, while SpaceX shares rose 1.1%. Investors read the deal as a sign that the satellite company intends to compete directly in mobile service, raising fresh questions about pricing power for incumbent carriers.

The move is a notable headwind for telecom holdings such as AT&T and Verizon heading into their next earnings reports. Analysts will watch for any response from the carriers on spectrum strategy and customer retention.