SpaceX blocked from early US benchmark index entry as S&P reaffirms existing rules
S&P kept its profitability test for major indexes, blocking a fast-track path for SpaceX while leaving ETFs to absorb any future additions.
- On Thursday, S&P Global declined to modify entry requirements for the benchmark S&P 500 index, effectively ruling out swift inclusion for Elon Musk's SpaceX ahead of its expected June 12 public debut.
- Standard S&P rules mandate companies maintain profitability across the most recent four quarters and complete a one-year 'seasoning period' before index eligibility, a requirement known as 'financial viability.'
- Conversely, Nasdaq and FTSE Russell adopted 'fast-entry' rules for newly public megacaps. Art Hogan, chief market strategist at B. Riley Wealth, said making exceptions for unprofitable companies 'didn't make a great deal of sense.'
- While excluded from the S&P 500, SpaceX remains eligible for the S&P Total Market Index and Dow Jones U.S. Total Stock Market Index after S&P Global modified entry rules for these broader benchmarks.
- Investors anticipate massive IPOs from SpaceX, Anthropic, and OpenAI, which combined for losses exceeding $25 billion last year. SpaceX is valued between $1 trillion and $2 trillion ahead of its June 12 public debut.
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Space Stocks (NASDAQ: ASTS), (NASDAQ: RKLB), (NYSE: RDW), (NASDAQ: SIDU) Slide As S&P Blocks SpaceX From Fast-Track S&P 500 Entry
Space stocks retreated overnight after S&P Global confirmed it would make no changes to S&P 500 eligibility rules, eliminating a key catalyst traders had been pricing in ahead of SpaceX’s blockbuster IPO. AST SpaceMobile (NASDAQ: ASTS) fell 2% in overnight trading, while Rocket Lab USA (NASDAQ: RKLB) and Redwire (NYSE: RDW) each declined 3%, and Sidus Space (NASDAQ: SIDU) shed 1% during the same session. The drop followed a broad rally on Thursd…
Ars Technica
technewstube.comS&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
SpaceX won’t get easy access to billions of dollars from passive investors.
The S&P 500 Snubs SpaceX as Elon Musk Describes a Coming 'Massive Growth Phase'
The post The S&P 500 Snubs SpaceX as Elon Musk Describes a Coming ‘Massive Growth Phase’ appeared first on 24/7 Wall St.. Elon Musk used a JPMorgan-hosted investor event this week to pitch SpaceX as entering a new chapter, telling Jamie Dimon that the company is “embarking on a massive new growth phase, and we need capital for that.” The IPO is scheduled to price on NASDAQ on June 12, 2026. S&P Global declined to change its rules to fast-track S…
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