$27 Billion Is About to Chase SpaceX Into the Nasdaq 100, and Smart Money Already Beat You to It
The stock’s drop followed a broad tech selloff as investors worried about AI valuations, rising yields and higher oil prices, analysts said.
- Space Exploration Technologies Corp. officially joined the Nasdaq-100 index on Monday, yet shares slid 6.8% on Tuesday to US$149.47, marking the company's lowest-ever closing price.
- Hedge funds executed a "buy the rumour, sell the event" strategy, selling shares into the anticipated passive buying on inclusion day that had front-run weeks earlier.
- Rising oil prices and concerns over AI profitability pressured the broader tech sector; the Nasdaq-100 itself fell more than 1.75% as major benchmarks declined alongside SpaceX.
- With less than 5% of SpaceX available to the public, the anticipated "index effect" failed to materialize as massive passive demand collided with extremely limited supply.
- Upcoming earnings reports and tiered lockup expirations will serve as future catalysts, with roughly $27 billion in passive buying expected to force index funds to rebalance SpaceX weightings.
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SpaceX Plummets 6.8% on Nasdaq 100 Inclusion Day; Space Stocks and ETFs Drop Together. SpaceX, the space company led by Elon Musk, actually plunged 6.8% on the 7th, the day it was added to the Nasdaq 100 index. The closing price was $149.47, falling below the opening price of $150 from its initial public offering (IPO) on the 12th of last month.
SpaceX's First Day on the Nasdaq 100 Did Not Go Well
The roller-coaster ride for AI stocks snapped lower again and weighed on Wall Street on Tuesday. The S&P 500 fell 33.58 points, or 0.4%, to 7,504.85, even though the majority of stocks within the index rose. The Dow Jones Industrial Average dipped 130.76 points, or...
A tanker is being attacked in the Middle East, and the North Sea crude oil variety Brent and the US light oil WTI are increasing their price by more than three percent. Meanwhile, investors are increasingly doubting the AI boom.
$27 Billion Is About to Chase SpaceX Into the Nasdaq 100, and Smart Money Already Beat You to It
Index-inclusion day is supposed to be a party. Passive funds line up to buy, forced demand meets thin supply, and the newly added stock pops. That is the script. SpaceX (NASDAQ:SPCX) officially joined the Nasdaq 100 today, and by lunchtime shares were down 5.65% to $151.35, while the broader Nasdaq 100 proxy QQQ slipped 1.74%. ... $27 Billion Is About to Chase SpaceX Into the Nasdaq 100, and Smart Money Already Beat You to It
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