This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- SpaceX CEO Elon Musk projects Q4 revenue will surge by approximately 70% from Q3 levels, potentially pushing quarterly revenue toward the $24 billion mark.
- San Francisco Fed President Mary Daly stated the central bank will likely need to tighten policy further, emphasizing that inflation remains the "number one priority" despite a positive jobs report.
- White House CEA Chair Chris Phelan cautioned against expecting the latest employment data to trigger an immediate rate hike, suggesting the Fed will wait for the next CPI report for clarity.
- JPMorgan downgraded its outlook on emerging-market currencies to "market-weight," citing concerns over overcrowding and short-term positioning.
- The U.S. rig count saw a minor uptick, with Baker Hughes reporting a total of 604 active rigs, a slight increase from the previous week.
SpaceX Eyes Record-Breaking Q4 Growth
SpaceX (SPCX) CEO Elon Musk has provided a bullish outlook for the final quarter of 2026, indicating that revenue could grow by "something like" 70% compared to the third quarter. This projection follows a strong Q3 performance where the company reported $14.6 billion in revenue, a 161% year-over-year increase driven largely by its "Super Intelligence" AI segment and Starlink connectivity. If Musk's Q4 estimates hold, SpaceX's quarterly revenue could rival or exceed the entire annual budget of NASA, marking a historic shift in the economics of the space industry.
The company's growth is increasingly anchored in its AI infrastructure, which generated $7.6 billion in Q3 alone. Despite the massive revenue gains, SpaceX continues to invest heavily, with capital expenditures reaching $19.6 billion in the last quarter. Musk also confirmed that SpaceX and Tesla (TSLA) have formed independent committees to explore a potential merger, though discussions remain in the preliminary stages.
Fed’s Daly Signals Hawkish Stance Amid "Stubborn" Inflation
In an interview on CNBC, San Francisco Fed President Mary Daly delivered a hawkish message, stating that the Federal Reserve "will have to tighten policy further" to achieve its 2% inflation target. While she characterized the recent jobs report as "good news for American workers," she noted that services inflation is not declining as expected. Daly emphasized that while the current interest rate environment could be described as "slightly restrictive to neutral," the Fed must remain deliberate and data-dependent.
Daly’s comments highlight a persistent concern within the FOMC regarding the "stubbornness" of price pressures. She noted that while wage growth is not "booming" and real wages are actually falling, the strength of the labor market gives the Fed the "latitude" to focus on its inflation mandate. She expressed a desire for higher confidence in the inflation trajectory before considering any shift in policy.
White House and Markets React to Economic Data
White House Council of Economic Advisers (CEA) Chair Chris Phelan pushed back against the notion that a strong labor market necessitates further rate hikes. Phelan stated that the Fed should not be expected to hike based solely on the jobs report and instead pointed to the upcoming Consumer Price Index (CPI) data as the critical catalyst for future policy decisions. This internal debate comes as the administration continues to monitor the impact of high interest rates on economic growth and affordability.
In the financial markets, JPMorgan strategists moved emerging-market currencies to a "market-weight" recommendation. The bank cited "overcrowding" in the sector following a period of strong performance, suggesting that investors take profits in the short term. Meanwhile, Baker Hughes reported that the U.S. rotary rig count rose by one to 604 for the week ending November 6, with both oil and gas rigs seeing marginal increases.
Geopolitical and Trade Developments
On the international front, Canadian Prime Minister Mark Carney indicated that trade negotiations with the United States have intensified. Carney noted that the U.S. has begun "asking less and offering more," specifically backing away from previous demands regarding Canadian sovereignty and cultural protections. While a final deal has not yet been reached, Carney expressed optimism that a mutually beneficial agreement could be finalized in the coming weeks, potentially ending the ongoing trade tensions between the two neighbors.
Automated market updates written with AI from market data and news wire reports, published without human review.