Key facts
- SpaceX aims to raise $75 billion in its IPO, valuing the company at $1.75 trillion.
- The IPO is expected to price on June 11 and begin trading on Nasdaq on June 12.
- Broadcom's disappointing results have impacted semiconductor shares.
- The S&P 500 is on pace for a slim weekly rise, extending a nine-week gain streak.
- May Consumer Price Index data is due next Wednesday, followed by producer prices on Thursday.
- Quarterly reports from Oracle and Adobe are also scheduled.
The highly anticipated initial public offering of SpaceX is slated for next week, representing a significant event for the U.S. stock market. Investors are approaching this with caution due to potential overexuberance following a remarkable rally. The benchmark S&P 500 is on track for a modest weekly gain, extending a streak of nine consecutive weeks of increases. However, disappointing results from chip company Broadcom on Wednesday tempered the momentum in semiconductor shares, which have surged on AI optimism. The S&P 500 remains near record highs, having gained approximately 11% in 2026, including a nearly 20% rebound since its late-March low for the year.
Market strategists note a persistent underlying momentum and an insatiable appetite for tech holdings, which have overshadowed other market inputs. Some investors are anticipating a pause or even a pullback after the sharp rally, citing risks such as the U.S.-Israeli war with Iran and potential spikes in energy prices if Middle East tensions escalate.
SpaceX aims to raise $75 billion, which would be the largest IPO ever, valuing the company at $1.75 trillion. Pricing is expected on June 11, with trading commencing on Nasdaq the following day. The company's diverse businesses, including rockets, satellite communications, and AI computing, coupled with Elon Musk's involvement, make its valuation complex. SpaceX reported a net loss of $4.94 billion in 2025 on revenue that rose 33% to $18.67 billion.
The IPO could attract substantial interest from retail investors and offer another prominent avenue to participate in the AI trade. Analysts view it as a potential indicator of market froth. Following SpaceX, other major AI leaders like Anthropic and OpenAI are expected to pursue IPOs in the coming months. The SpaceX IPO is considered an important benchmark for identifying new secular growth opportunities.
In addition to the IPO, investors will be watching upcoming economic data, including the May Consumer Price Index (CPI) on Wednesday, which will reflect the impact of surging oil and gasoline prices on inflation. Producer prices are due on Thursday. Quarterly earnings reports from tech companies Oracle and Adobe are also anticipated. The technology sector's outperformance has pushed its share of the S&P 500's market capitalization to a record high of over 39%. These reports will test the strength of the tech trade and the software industry's rebound.