According to a preliminary University of Michigan survey published on October 9, the consumer confidence index fell from 48.1 in September to 46.3 in October, below the market expectation of 47.8 and approaching a historical low. The current economic conditions index fell to 44.7, a historical low; one-year inflation expectations rose from 4.6% to 4.7%, while five-year expectations increased from 3.4% to 3.5%. Continued increases in energy prices and the cost of living are intensifying financial pressure on American households.

Market impact: The simultaneous deterioration in consumer confidence and rise in inflation expectations indicate that the US economy faces the risk of a combination of slowing demand and price pressures. However, high-income households continue to support consumption, so the decline in confidence is not a direct equivalent of falling spending. The September Consumer Price Index (CPI) data, due to be released next week, will have an even greater impact on expectations for Fed policy. In particular, attention should be paid to whether high energy prices are being passed through to core inflation in goods and services.

2. Communications sector: SpaceX acquires radio frequencies for nearly $8 billion, T-Mobile falls 13.3%
SpaceX announced an agreement with Grain Management to purchase national low-band 800 MHz spectrum for approximately $8 billion to expand its Starlink Mobile business. Low frequencies can cover greater distances and improve indoor signal penetration, giving SpaceX an opportunity to gradually enter the mobile communications market traditionally occupied by conventional operators. Telecom stocks fell following the news: T-Mobile dropped 13.3%, AT&T fell approximately 9.9%, and Verizon declined approximately 8.8%. The deal still requires regulatory approval.

Market impact: The deal could reshape the competitive landscape of the US mobile market over the long term. If combining satellite communications with terrestrial spectrum proves successful, the coverage advantage of traditional operators could be called into question. However, acquiring spectrum does not mean that Starlink already has a fully fledged nationwide mobile operator network. Notably, shares of companies that own telecommunications towers moved higher instead, indicating market expectations that terrestrial infrastructure will be in demand for new networks.

3. International energy: oil prices remain high, while US diesel stays near historical highs
On October 9, Brent futures rose 0.42% to $104.72 per barrel, while WTI rose 0.39% to $91.85. Trump said there had been progress in US-Iran talks, slightly easing market concerns, but Hurricane Isaias is approaching the Gulf of Mexico, resulting in more than 70% of US offshore oil production being shut down, which partially offset the decline in negative factors. The US retail diesel price remains around $6.28 per gallon, approximately 70% higher than before the start of the Israel-Iran war.