SpaceX debuts at $1.77 trillion as US-Iran peace hopes ease oil pressure
The rocket giant raises $75 billion at $135 per share, while reports of a potential US-Iran interim deal send crude prices lower and Asian markets higher.
US equity markets opened with cautious optimism on Friday, driven by the historic debut of SpaceX on the Nasdaq and emerging signs of a diplomatic breakthrough between the United States and Iran. The Dow Jones Industrial Average rose 0.6 per cent, while the S&P 500 gained 0.2 per cent. The tech-heavy Nasdaq Composite remained largely flat, reflecting investor caution ahead of the market’s largest initial public offering in history.
SpaceX commenced trading at an initial public offering price of $135 per share, raising approximately $75 billion and valuing the company at around $1.77 trillion. The listing marks a significant milestone for the aerospace and artificial intelligence firm, which has operated primarily as a private entity until now. CEO Elon Musk, who rang the opening bell remotely from Starbase, Texas, is poised to become the world’s first trillionaire following the valuation.
Concurrently, global markets reacted to reports that the US and Iran were nearing an interim peace deal to reopen the Strait of Hormuz. Oil prices fell sharply as traders assessed the likelihood of a resolution to the conflict that has disrupted energy supplies. Brent crude futures tumbled as much as 5 per cent in early trading, while West Texas Intermediate crude dropped over 2 per cent, marking their lowest levels since March.
Asian markets climbed in sympathy with the positive geopolitical developments. South Korea’s Kospi surged 7.8 per cent, led by gains in technology stocks including Samsung Electronics and SK Hynix. Japan’s Nikkei 225 rose 3.5 per cent, while Australia’s S&P/ASX 200 advanced 1.9 per cent. The rally followed comments from US President Donald Trump, who claimed a “great settlement” was near, although Iranian officials have yet to confirm readiness for a signing ceremony.
Beyond the macro themes, individual stock movements highlighted mixed corporate sentiment. Adobe shares fell 8 per cent despite beating earnings expectations, following news that its chief financial officer would depart to join Marvell. In the space sector, shares of competitors such as Rocket Lab and Redwire Corporation declined more than 9 per cent as investors rotated capital ahead of SpaceX’s debut. Pre-market derivatives suggested potential upside for SpaceX, with some contracts implying a valuation exceeding $2.4 trillion.
