AST SpaceMobile Inc. (ASTS) shares climbed 3.6% immediately after the Federal Reserve announced a 25 basis point rate cut Wednesday afternoon, eventually pushing the stock up 9.25% to $79.58 by the time markets digested the news. For a company trying to build a cellular network in space, cheaper money is kind of a big deal.
Why Lower Rates Matter for Space Stocks
The Fed's decision to lower the federal funds target range to 3.5%-3.75% sparked a rally across high-beta sectors, and space technology companies were among the biggest winners. The logic is straightforward: building satellites and launching them into orbit requires enormous amounts of capital. When borrowing costs drop, companies like AST SpaceMobile can fund their infrastructure projects more cheaply.
Investors are particularly optimistic about small-cap growth stocks in this environment. For a company constructing a space-based cellular broadband network, easier access to capital isn't just helpful—it's essential for scaling operations and hitting ambitious deployment timelines.
Launch Window Approaching
Timing matters here. AST SpaceMobile's BlueBird 6 satellite is currently sitting on the launch pad, scheduled for liftoff on December 15. This next-generation satellite represents a critical step toward delivering true 5G broadband from space, and the upcoming launch is generating momentum among investors.
The company is targeting full commercial activation in 2026, and the combination of accommodative monetary policy with successful technical execution is creating renewed confidence in that timeline. When you're betting on space infrastructure, you need both the technology to work and the capital to keep building.
Technical Strength Building
The momentum isn't just about the Fed. AST SpaceMobile currently holds a Momentum score of 96.68, indicating exceptionally strong market performance relative to its peers. The stock is trading about 12.4% above its 50-day moving average of $69.90, suggesting bullish short-term sentiment.
More impressively, the stock sits roughly 74.3% above its 200-day moving average of $45.06, reinforcing the strength of its long-term upward trajectory. This positioning relative to key technical levels indicates robust market sentiment toward the company's prospects.
Whether the rally continues depends on execution. But for now, investors are betting that lower rates and an imminent satellite launch make for a compelling combination.