Stocks surged late yesterday on Mideast truce hopes, and they’re rallying again this morning. Crude oil is dropping, gold and silver are ripping, and Treasuries and the dollar are flat.
All systems are “Go” for SpaceX’s (SPCX) public debut! The private rocket, satellite, and AI company helmed by Elon Musk sold 555.6 million shares at $135 a piece yesterday. That raised $75 billion and valued the company at $1.77 trillion overall. That’s more money than every other offering this year raised combined, as the Wall Street Journal notes.
Source: Wall Street Journal
Sometime today, the stock will open for trading – and anyone who couldn’t buy at the Initial Public Offering (IPO) price is free to do so. What will happen? That’s anyone’s guess. We could see some wild initial swings, which would halt the stock temporarily if they exceed 10%. Or it could go smoothly as the firm’s bankers step in to stabilize trading by buying more shares – something known as the “green-shoe” option.
Trading in “gray markets,” including derivatives traded in certain foreign countries and prediction markets contracts, suggest the stock could rise another 35% (or more) from its opening price, at least at the open. The bigger issue is what happens after the initial frenzy settles down.
Money-losing companies often have solid debuts, but can struggle over time. Even Meta Platforms Inc. (META) tanked more than 50% in the months after its IPO before finding its footing – and skyrocketing thereafter. Investors and investment bankers will be closely watching what happens over the coming weeks because Anthropic and OpenAI are planning their own mega-IPOs later in 2026.
In other news, President Trump said late yesterday that the US and Iran were close to a Mideast peace deal. Several previous announcements came to nothing, but markets appear to be putting more stock in this one because other sources are confirming progress in the talks. US crude oil futures sank below $85 a barrel in early trading, down from around $105 a month ago.
