SpaceX shares surged to $161.33 in initial trading, pressuring tech giants as investors assess the $75 billion offering’s impact.
SpaceX’s $75 billion IPO opened at $161.33, up nearly 20% from its listing price, driving volatility in tech stocks during midday trading. The Nasdaq Composite fell 0.36% as investors rotated out of established tech names like Nvidia, Apple, and Microsoft, while the S&P 500 and Dow Jones rose modestly amid broader market resilience.
The IPO marks one of the largest in recent years, though skepticism remains over the company’s valuation given its loss-making status. Strategists at 22V Research noted fading conviction in mega-cap tech, suggesting potential for sharper swings as investors rebalance portfolios. Oil prices also declined, with WTI crude dipping below $85 on Iran deal optimism.
Market reaction reflected cautious optimism, with the S&P 500 up 0.12% and the Dow gaining 0.38%, while tech-heavy indices faced pressure from the SpaceX debut.