EchoStar Soars on $17B SpaceX Deal as Markets Brace for Key Inflation Data

EchoStar Rockets Higher on Musk-Backed Spectrum Deal

Just when it seemed like the market needed a jolt, EchoStar (SATS | +14.57%) delivered.

The satellite communications firm surged after agreeing to sell $17 billion worth of mobile spectrum licenses to none other than Elon Musk’s SpaceX. The licenses will be used for the company’s Starlink satellite network, which continues to build out its global internet reach.

It’s a big win for EchoStar, not just financially, but politically. This deal comes on the heels of scrutiny from the FCC, which questioned whether the company was meeting its 5G rollout commitments.

Now, with a SpaceX deal inked and a previous $23 billion sale to AT&T already on the books, EchoStar appears to be clearing the air and cashing in.

The deal rippled through the broader telecom space too. Legacy players like AT&T (T | -1.66%), Verizon (VZ | -2.04%) and T-Mobile (TMUS | -2.58%) saw their shares drop as investors digested what this means for the future of spectrum ownership and deployment.

Tech Rebounds, Led by Semis and S&P Newcomers

With the 10-year yield dipping to 4.06%, interest-sensitive tech names had room to breathe again.

Semiconductor stocks led the charge: Broadcom (AVGO | +3.77%) extended Friday’s massive rally (+9%) as excitement builds over its $10 billion AI chip order, rumored to be from OpenAI.

Nvidia (NVDA | +1.87%) joined in the rebound.

Also making headlines were Robinhood (HOOD | +15.17%) and AppLovin (APP | +11.99%), both of which will be added to the S&P 500 as of September 22.

The rebalancing is a major milestone for the two companies and a boon for passive inflows.

Apple Event on Deck: iPhone 17 Air to Take Flight?

Apple (AAPL | -0.82%) slipped slightly ahead of Tuesday’s highly anticipated product event, where the tech giant is expected to unveil the iPhone 17 Air.

The bar is high, and as history shows, these launches often turn into “sell-the-news” events, especially if the wow factor doesn’t match the market’s lofty expectations.

As Bank of America put it, the hype tends to be priced in by the time Tim Cook hits the stage.

Macro Focus Shifts to CPI and PPI

After last week’s weaker-than-expected jobs report sparked talk of a slowing economy, attention now turns to inflation.

Wednesday brings the Producer Price Index (PPI), followed by the all-important Consumer Price Index (CPI) on Thursday. CMC Markets is expecting a 0.3% monthly rise in consumer prices for August, up slightly from July’s 0.2%.

Here’s the kicker: after pricing in two rate cuts for 2025, traders are now leaning toward three. That’s a big shift in expectations and puts even more pressure on the inflation numbers.

As Chris Larkin from E-Trade noted, the Fed might soon have to face the reality that “bad news” is no longer good news if market volatility starts ramping up again.

Fed Under Fire From the Treasury, No Less

In a rare and sharply worded essay, U.S. Treasury Secretary Scott Bessent compared the Fed to a “deadly virus that escaped the lab” and called for major reforms, including stripping it of bank supervisory powers.

The backlash was immediate, but also symbolic of growing discomfort with the central bank’s expansive role. According to Ian Katz at Capital Alpha Partners, though, such reforms would require legislation, which remains a very tall order.

Final Thoughts

Markets are entering a critical week where hard data will likely dictate sentiment more than narratives. Inflation readings, Fed expectations, and high-profile events like Apple’s launch all intersect in the days ahead.

For now, a mix of excitement (EchoStar, Broadcom), rotation (S&P rebalancing), and caution (CPI looming) sets the tone and I wouldn’t be surprised if we see some whiplash.

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Kristoff - ChartMill

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