SpaceX shares jumped 19.6% on their second day of trading, closing at $192.80 and pushing the company’s valuation above $2.5 trillion, placing it among the world’s most valuable listed firms. The surge followed a strong debut that ended at $160.95 per share, capping the largest IPO ever recorded in the United States.
Strong demand drives early momentum
Trading activity remained intense as demand continued to outpace supply. Underwriters exercised the greenshoe option, issuing an additional 83.33 million shares and expanding the total offering to 638.9 million shares. This brought total IPO proceeds to $85.7 billion.
Retail traders played a dominant role in early flows. Data indicated that inflows approached $100 billion ahead of the listing, with a substantial share concentrated in the first two trading sessions. The company’s relatively small float, near 4.3%, has amplified price swings, making the stock highly sensitive to incremental buying pressure.
Broader market sentiment improves
The rally coincided with easing geopolitical tensions after the United States and Iran reached an understanding to reopen the Strait of Hormuz. The development lifted overall market sentiment, with the Dow rising 0.92%, the S&P 500 gaining 1.65%, and the Nasdaq climbing 3.07%.
Improved macro conditions have also encouraged a shift toward equities tied to growth and infrastructure themes, particularly those linked to artificial intelligence and advanced technology.
Options market could fuel further upside
Analysts are closely watching the anticipated launch of options trading in SpaceX shares. The introduction of derivatives could set the stage for a gamma squeeze, where market makers purchase underlying shares to hedge positions, potentially accelerating upward price movement. Some projections suggest the stock could move toward $400 under such conditions.
Oppenheimer assigned the stock an “outperform” rating with a $190 target shortly before the rally, citing the company’s vertical integration across hardware, data, and engineering. The share price reached that level within two trading sessions.
Long-term narrative attracts capital
Early shareholder Diamandis compared SpaceX to the railway expansion of the 19th century, framing it as core infrastructure for a future multi-planet economy. He confirmed reallocating capital into the company, signaling long-term conviction despite expected volatility tied to upcoming lock-up expirations.
Tech investor Gerstner added that institutions increasingly view the company as central to both space commercialization and artificial intelligence infrastructure. Rising global demand for computing power is seen as a key driver of renewed interest in firms building foundational systems.
Capital flows reshape market dynamics
The scale of SpaceX’s valuation is beginning to influence broader market behavior. Capital has increasingly concentrated in large, narrative-driven equities, drawing liquidity away from more speculative segments.
At the same time, easing geopolitical risks have reduced demand for defensive assets, reinforcing flows into companies aligned with economic expansion. However, attention remains on upcoming lock-up expirations later this year, when additional shares could enter the market and test the strength of current demand.
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