SpaceX is set to join the Nasdaq-100 on July 7 after completing the largest IPO on record, adding Elon Musk’s space and AI-linked company to one of Wall Street’s most tracked technology indexes.
The company raised $75 billion in its June public offering. SpaceX shares rose as high as $225 after the June 12 IPO before falling to $162 last week, leaving the stock down about 28% from its post-listing peak.
The Nasdaq-100 inclusion will bring SpaceX into funds that track the index, including the Invesco QQQ ETF. However, past index additions show that entry into the Nasdaq-100 has not always led to fresh gains.
SpaceX Joins Nasdaq-100 After Record IPO
SpaceX will officially enter the Nasdaq-100 on Tuesday, July 7. The company was added under newer rules that allow newly public large-cap companies to enter the index faster than before.
The IPO valued SpaceX among the largest listed companies in the United States. Its market capitalization has been reported near $2.1 trillion, although its early index weight will be much lower than that valuation suggests.
SpaceX sold less than 5% of its total shares in the public offering. Employee lockup rules also limit how many shares can trade publicly in the months after the IPO.
Because of that limited float, Nasdaq will adjust SpaceX’s index weight. The company is expected to enter the Nasdaq-100 with a weight below 1%, treating it closer to a $300 billion float-adjusted company.
QQQ Funds Prepare to Add SpaceX
Funds tracking the Nasdaq-100 are expected to buy SpaceX shares to match the index. Mutual funds and ETFs tied to the benchmark hold about $800 billion in assets.
The largest of those funds is Invesco’s QQQ ETF, which has about half a trillion dollars in assets. Other Nasdaq-100 products, including QQQM and lower-fee funds from State Street and BlackRock, are also part of the passive tracking market.
Index inclusion can create automatic demand when funds buy shares at the closing price before entry. This can support a stock in the early period after joining a major index.
Still, the limited float will reduce the amount of SpaceX stock that Nasdaq-100 funds need to buy. SpaceX is also not expected to enter the S&P 500 for at least one year.
Palantir and Strategy Offer Caution
SpaceX’s Nasdaq-100 entry comes with comparisons to recent index additions that saw volatility after joining the benchmark. Palantir entered the Nasdaq-100 on Dec. 23, 2024, but its stock later fell about 25% in the following weeks.
Strategy also joined the Nasdaq-100 on Dec. 23, 2024. The Bitcoin holding company had already peaked near $543 in November and now trades near $100, marking a large correction from its high.
These examples show that index inclusion does not always start a new rally. In some cases, investors may buy before the event, leaving limited fresh demand after the official entry.
SpaceX also listed during a strong AI infrastructure trade. Semiconductor, memory, and AI compute stocks had already rallied before the company’s IPO, which may have raised investor expectations.
With its inclusion, SpaceX will become one of the four Nasdaq-100 companies with Bitcoin holdings. Due to the announcement, SpaceX (SPCX) shares rose 2.83% to trade at $162, still over $28 higher than its IPO price of $135. Investors are now watching whether passive fund buying can offset selling pressure after the early IPO rally.
