SpaceX to join the Nasdaq-100
SpaceX’s shares are continuing their consolidation phase on the New York Stock Exchange, a week after its listing on Nasdaq.
Samuel Boivin | Nurfoto | Getty Images
SpaceX was one of the fastest additions ever Nasdaq-100 The index has sparked a new wave of buying from passive investors less than a month after the company’s blockbuster IPO.
Nasdaq announced after Friday’s close that SpaceX had qualified for inclusion in its benchmark technology index. Assuming the company meets the requirements, index-tracking funds and other product sponsors will begin purchasing shares after the market closes on July 6, and SpaceX will officially join the Nasdaq-100 before trading begins on July 7.
The index is tracked by more than $800 billion. Invesco QQQ Trust (QQQ)It is one of the most popular securities traded every day and is seen as a barometer for the AI bull market.
The aviation and satellite company is expected to enter the index with a weight of less than 1%.
Such a rapid addition of SpaceX would make Elon Musk’s company one of the first beneficiaries of the recently adopted Nasdaq. fast way Participation framework for newly public companies. The changes allowed some large IPOs to become Nasdaq-100 eligible after just 15 trading days, significantly shortening the historically much longer waiting period.
Under the previous framework, investors following the Nasdaq-100 would have to wait months before getting access to the newly listed market giants.
This participation could create another source of demand for SpaceX, which has been one of the most actively traded stocks since its launch on June 12. Index funds and exchange-traded funds tied to the Nasdaq-100 must buy shares to match the gauge’s new composition, while active managers who follow the index closely can also adjust their positions.
Because SpaceX’s publicly traded volume remains small compared to its total market capitalization, even a modest index weighting could require meaningful purchases of passive investment vehicles.
Earlier this month, S&P Dow Jones Indices declined to institute a similar rapid process for the S&P 500. Therefore, SpaceX is not eligible for inclusion in the S&P 500 due to the index’s separate profitability and seasonality requirements.
— CNBC’s Leslie Picker contributed reporting.
