{"id":74277,"date":"2026-11-06T14:38:21","date_gmt":"2026-11-06T18:38:21","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-signals-further-tightening-as-spacex-projects-massive-q4-growth\/74277\/"},"modified":"2026-11-06T14:38:21","modified_gmt":"2026-11-06T18:38:21","slug":"fed-signals-further-tightening-as-spacex-projects-massive-q4-growth","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-signals-further-tightening-as-spacex-projects-massive-q4-growth\/74277\/","title":{"rendered":"Fed Signals Further Tightening as SpaceX Projects Massive Q4 Growth"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>SpaceX CEO Elon Musk<\/strong> projects Q4 revenue will surge by approximately <strong>70%<\/strong> from Q3 levels, potentially pushing quarterly revenue toward the <strong>$24 billion<\/strong> mark.<\/li>\n<li><strong>San Francisco Fed President Mary Daly<\/strong> stated the central bank will likely need to <strong>tighten policy further<\/strong>, emphasizing that inflation remains the &quot;number one priority&quot; despite a positive jobs report.<\/li>\n<li><strong>White House CEA Chair Chris Phelan<\/strong> cautioned against expecting the latest employment data to trigger an immediate rate hike, suggesting the Fed will wait for the next <strong>CPI report<\/strong> for clarity.<\/li>\n<li><strong>JPMorgan<\/strong> downgraded its outlook on <strong>emerging-market currencies<\/strong> to &quot;market-weight,&quot; citing concerns over overcrowding and short-term positioning.<\/li>\n<li><strong>The U.S. rig count<\/strong> saw a minor uptick, with <strong>Baker Hughes<\/strong> reporting a total of <strong>604 active rigs<\/strong>, a slight increase from the previous week.<\/li>\n<\/ul>\n<h2>SpaceX Eyes Record-Breaking Q4 Growth<\/h2>\n<p>SpaceX (<a href=\"\/stock\/SPCX\">SPCX<\/a>) CEO <strong>Elon Musk<\/strong> has provided a bullish outlook for the final quarter of 2026, indicating that revenue could grow by &quot;something like&quot; <strong>70%<\/strong> compared to the third quarter. This projection follows a strong Q3 performance where the company reported <strong>$14.6 billion<\/strong> in revenue, a <strong>161% year-over-year<\/strong> increase driven largely by its &quot;Super Intelligence&quot; AI segment and Starlink connectivity. If Musk&#39;s Q4 estimates hold, SpaceX&#39;s quarterly revenue could rival or exceed the entire annual budget of NASA, marking a historic shift in the economics of the space industry.<\/p>\n<p>The company&#39;s growth is increasingly anchored in its <strong>AI infrastructure<\/strong>, which generated <strong>$7.6 billion<\/strong> in Q3 alone. Despite the massive revenue gains, SpaceX continues to invest heavily, with capital expenditures reaching <strong>$19.6 billion<\/strong> in the last quarter. Musk also confirmed that SpaceX and Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>) have formed independent committees to explore a potential merger, though discussions remain in the preliminary stages.<\/p>\n<h2>Fed\u2019s Daly Signals Hawkish Stance Amid &quot;Stubborn&quot; Inflation<\/h2>\n<p>In an interview on CNBC, <strong>San Francisco Fed President Mary Daly<\/strong> delivered a hawkish message, stating that the Federal Reserve &quot;will have to tighten policy further&quot; to achieve its 2% inflation target. While she characterized the recent jobs report as &quot;good news for American workers,&quot; she noted that <strong>services inflation<\/strong> is not declining as expected. Daly emphasized that while the current interest rate environment could be described as &quot;slightly restrictive to neutral,&quot; the Fed must remain deliberate and data-dependent.<\/p>\n<p>Daly\u2019s comments highlight a persistent concern within the FOMC regarding the &quot;stubbornness&quot; of price pressures. She noted that while wage growth is not &quot;booming&quot; and real wages are actually falling, the strength of the labor market gives the Fed the &quot;latitude&quot; to focus on its inflation mandate. She expressed a desire for higher confidence in the inflation trajectory before considering any shift in policy.<\/p>\n<h2>White House and Markets React to Economic Data<\/h2>\n<p><strong>White House Council of Economic Advisers (CEA) Chair Chris Phelan<\/strong> 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 <strong>Consumer Price Index (CPI)<\/strong> 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.<\/p>\n<p>In the financial markets, <strong>JPMorgan<\/strong> strategists moved emerging-market currencies to a &quot;market-weight&quot; recommendation. The bank cited &quot;overcrowding&quot; in the sector following a period of strong performance, suggesting that investors take profits in the short term. Meanwhile, <strong>Baker Hughes<\/strong> reported that the U.S. rotary rig count rose by one to <strong>604<\/strong> for the week ending November 6, with both oil and gas rigs seeing marginal increases.<\/p>\n<h2>Geopolitical and Trade Developments<\/h2>\n<p>On the international front, <strong>Canadian Prime Minister Mark Carney<\/strong> indicated that trade negotiations with the United States have intensified. Carney noted that the U.S. has begun &quot;asking less and offering more,&quot; 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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways SpaceX CEO Elon Musk projects Q4 revenue will surge by approximately 70% from Q3 levels, potentially pushing quarterly 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