DJIA and US stock futures point to a higher open on Wall Street. The Dow Jones Industrial Average (DJIA) looks set to add around 300 points at the bell, while the S&P 500 and Nasdaq Composite are expected to open close to flat.
Markets are digesting the historic debut of SpaceX, which began trading on the Nasdaq under the ticker SPCX. The rocket maker priced its initial public offering at $135 per share, raising approximately $75 billion in what stands as the largest IPO in history.
SpaceX executives Gwynne Shotwell and Bret Johnsen rang the opening bell, while Elon Musk joined the ceremony remotely from Texas. Shares of SPCX opened around $150, an 11% jump from the IPO price, before climbing sharply through the session to trade above $160.
That opening figure came in below earlier trading desk indications near $175. Wall Street had been watching closely for signs the huge raise could drain liquidity from the broader market, though most analysts argue the market can comfortably absorb new equity supply of this size.
Sentiment is also being lifted by progress toward ending the conflict between the US and Iran. President Trump indicated planned strikes had been called off overnight, and said a deal to end the war and reopen a key trade route could soon be finalized.
The prospect of de escalation pushed oil prices lower in early trading, easing some of the inflation concerns that have weighed on markets recently. Friday’s tone marks a reversal from earlier in the week, when the Dow, S&P 500 and Nasdaq all posted sharp declines on fears of expanded US military action.
Fresh economic data also factored into the picture. A preliminary reading of US consumer sentiment for June beat expectations, marking the first improvement in the index in three months, even as the overall mood among consumers remained subdued by historical standards.
Wall Street firms moved quickly to weigh in on SpaceX as a public company. One brokerage initiated coverage with an outperform rating and a price target implying a gain of roughly 40% from the IPO price over 12 to 18 months, while flagging that the stock is likely to remain volatile early on.
A second firm set a price target implying a smaller gain without assigning a formal rating. Analysts cautioned against reading SpaceX’s outsized first day moves as a signal for the wider market, given the unique dynamics of a single blockbuster offering.
For now traders are focused on two threads. The first is how the SpaceX listing settles in over coming sessions, and the second is whether the signaled progress on a US Iran agreement turns into a formal deal, with energy markets likely to remain sensitive to any updates.
