AT&T Inc. shares closed Friday's session at $27.13, marking a decline of 0.7%. The drop came as the telecom sector broadly lagged a significant market advance that saw the Dow Jones Industrial Average surge past the 50,000 milestone.
Telecom Sector Lags Broader Rally
While the S&P 500 gained approximately 2%, major telecom peers also retreated. Verizon Communications fell 1.7%, and T-Mobile US slipped 2.2%. The sector's underperformance highlights its sensitivity to interest rate expectations, as high-dividend stocks like telecoms are often weighed against Treasury yields.
In corporate developments, AT&T announced the launch of its amiGO Jr. Phone and an updated amiGO Jr. Watch 2, devices aimed at the youth market with enhanced parental controls. The products, which start at $2.99 per month, connect to a complimentary app allowing guardians to manage screen time and application access.
Macroeconomic Data in Focus
With markets closed for the weekend, investor attention is pivoting to upcoming economic indicators. The release of January's Employment Situation report is scheduled for Wednesday, February 11, followed by the Consumer Price Index data on Friday, February 13. These reports, previously postponed, are anticipated to heavily influence the Federal Reserve's interest rate trajectory.
Comments from Federal Reserve Bank of San Francisco President Mary Daly added to the narrative, noting a "precarious" labor market and suggesting the potential for one or two rate cuts in 2026. The Fed's benchmark rate currently sits in a range of 3.50% to 3.75%.
Despite Friday's retreat, AT&T's stock has risen roughly 3% since the beginning of February, buoyed by a four-day rally earlier in the week. However, the company faces ongoing challenges, including intense wireless pricing competition and limited margin for operational error, which could be exacerbated by any resurgence in bond yields triggered by strong economic data.
