U.S. stocks ended lower Friday as investors weighed the cost of artificial intelligence investment, while a Bloomberg report on SpaceX site discussions coincided with sharp losses in major wireless carriers.
The Dow Jones Industrial Average fell 652.82 points, or 1.23%, to 52,215.16. The S&P 500 lost 0.52% to 7,623.68, and the Nasdaq Composite slipped 0.21% to 25,955.34.
The decline followed a 2.6% drop in the Nasdaq on Thursday, its largest one-day fall since June 5. Reuters reported that investors were questioning whether spending on artificial intelligence infrastructure could produce returns quickly enough to justify its costs and financing needs.
Meta reported $32.79 billion in operating cash flow and negative free cash flow of $2.12 billion for the third quarter. The company expects 2026 capital expenditures of $135 billion to $145 billion, including principal payments on finance leases. “There is still fallout from the questioning of the AI trade,” Kristina Hooper, Man Group’s chief market strategist, told Reuters.
People familiar with the matter told Bloomberg that discussions between SpaceX and cellular infrastructure firms involved a possible arrangement for at least 80,000 U.S. sites. Reuters said SpaceX and the companies named in the report had not immediately responded to its requests for comment. AT&T and T-Mobile each fell nearly 8%, Verizon declined 1.2%, Crown Castle rose 9% and American Tower gained 4%.
Separately, Grain Management announced an agreement to sell SpaceX its nationwide 800 MHz spectrum portfolio for Starlink Mobile’s satellite direct-to-device service. The deal is subject to Federal Communications Commission (FCC) approval and other customary closing conditions.
Brent crude settled 3.1% higher at $116.72 a barrel. The S&P 500 energy sector rose 2.5% to a record, even as most sectors declined. The Federal Reserve’s next scheduled Federal Open Market Committee (FOMC) meeting is Tuesday and Wednesday, Oct. 27-28.
