The S&P 500 and Nasdaq fell ahead of SpaceX's stock market debut
Photo: X / NYSE
The main U.S. stock indices opened multidirectional on June 12. S&P 500 and Nasdaq Composite fell, while Dow Jones - adds insignificant 0.06%. Today on the Nasdaq exchange starts trading in securities of Elon Musk's aerospace corporation SpaceX. During the IPO SpaceX raised a record $75 billion, receiving a valuation of $1.77 trillion. This placement became the largest in the history of the stock market.
Details
Against this background, the broad index of U.S. stocks S&P 500 in the first minutes of trading grew, but then lost this momentum and at the time of publication is losing 0.4%, technological Nasdaq Composite initially opened in the negative and then only accelerated its decline - down 0.65%. The Dow Jones index of blue chips changed insignificantly - it grows by symbolic 0.06%, the Russell 2000 index of small and medium capitalization companies adds 0.39%.
Brent crude oil fell more than 2.5% to $88 per barrel after US President Donald Trump's reports that a peace deal with Iran could be reached as early as this weekend (it was down to $85.8 at the trading low). WTI contracts are also cheaper by more than 2.7% - trading within $85. June 12 oil quotations were also influenced by the publication by Iran's Mehr agency of a preliminary draft agreement between Washington and Tehran, which, among other things, provides for the resumption of navigation in the Strait of Hormuz within 30 days after the signing of the deal.
What the market is saying
"Historically, large IPOs occur during periods of optimistic equity market sentiment, but the additional supply of securities could cause some problems," warned Wells Fargo Investment Institute global equity strategist Douglas Beath (quoted by CNBC). - The share of equities in private investors' portfolios is already close to an all-time high, which means they may be selling existing securities to finance the purchase of new ones," he added. Combined with the ongoing geopolitical tensions and the upcoming midterm elections in the U.S., this situation, according to the analyst, "may become another reason for increased turbulence in the markets in the second half of the year".
That said, Wells Fargo, Beat emphasized, maintains "a positive view on AI and the information technology sector, but would not chase that growth."
The material is supplemented
This article was AI-translated and verified by a human editor
