Rodney Russell
Major stock indexes rose Friday, closing higher for the week, as SpaceX shares jumped in their highly anticipated debut. The blue-chip Dow Jones Industrial Average, benchmark S&P 500, and tech-focused Nasdaq Composite finished up a respective 0.7%, 0.5%, and 0.3%, with the Dow adding more than 350 points as Elon Musk's space company stole the show.
Key Takeaways
- SpaceX (SPCX) opened at $150, above its $135 IPO price, and closed above $160, up 19%, in the largest IPO in history at $75 billion raised.
- The Dow, S&P 500, and Nasdaq closed the week up 0.6%, 0.5%, and 0.6% respectively—the 10th positive S&P 500 week in 11.
- Elon Musk's net worth surpassed $1 trillion on paper following the SpaceX debut.
- Oil prices fell nearly 4% on signs of progress toward ending the U.S.-Iran conflict and reopening the Strait of Hormuz.
- Adobe sank nearly 7% to an eight-year low after warning on revenue growth and announcing its CFO's departure.
SpaceX Steals the Spotlight in Record-Breaking Debut
The focus of investors' attention Friday was on the public debut of Elon Musk's SpaceX, which opened on the Nasdaq under the ticker "SPCX" at $150, up from its IPO price of $135. The shares closed above $160, up 19%. Officially Space Exploration Technologies, the company's $75 billion raised marked the largest IPO in history.
The implied market capitalization of the company, around $1.8 trillion, puts SpaceX among the most valuable U.S. companies—ahead of some Magnificent Seven firms—even before trading began. The space, connectivity and artificial intelligence company sold about 556 million shares at $135, as expected. ("Teams are go for launch," the company wrote on X confirming the pricing.)
The outsize demand reflected investors champing at the bit to get a piece of the space-AI crossover, which has ambitions to build orbital data centers and colonize Mars. On prediction markets, some bettors envisioned a rise to, or above, a $3 trillion market cap.
Elon Musk Becomes a Trillionaire on Paper
Yesterday's billionaire is today's trillionaire, thanks to SpaceX. The IPO, which priced at $135 per share, boosted the value of founder and chief Elon Musk's assets, which according to company filings include 4.76 billion shares of the company.
By Forbes' estimate, his net worth rose by approximately $1.88 billion overnight to $982 billion. With the stock trading well above the IPO price, Musk stands to be the world's first trillionaire—on paper, at least. Forbes' real-time tracker had him at $1.1 trillion.
Musk also owns about 11% of Tesla, which was also rising and sports a market cap above $1.2 trillion. He has stakes in two other businesses he founded: brain interface company Neuralink, and The Boring Company, a tunneling startup.
Magnificent Seven and Adobe Move in Opposite Directions
Shares of the Magnificent Seven tech giants finished mixed. Tesla (TSLA), another one of Musk's companies, closed up 1.6% after pacing the septet with a 4.6% advance the prior day.
Adobe (ADBE) sank nearly 7% to around $202, its lowest level since early 2018, after executives said its short-term annualized recurring revenue growth will be pressured as the company prioritizes its "freemium" AI offerings to grow its user base. The company is allowing users to try its AI products without facing paywalls and delaying previously planned price increases—decisions executives said could hamper short-term revenue growth.
Adobe also said CFO Dan Durn is departing the company at the start of next week, marking the loss of another top executive after announcing in March that longtime CEO Shantanu Narayen will step down once a successor is found. Marvell Technology (MRVL) announced it was hiring Durn to be its finance chief.
EchoStar and Space Stocks Struggle Despite SpaceX Pop
EchoStar (SATS) owns a chunk of SpaceX shares, but it had a rough day. Shares of EchoStar sank 12% in afternoon trading, by far the worst performer in the S&P 500, even though the DISH TV and Boost Mobile owner holds a nearly 3% stake in SpaceX.
Other space stocks fell Friday, including Virgin Galactic Holdings (SPCE), Voyager Technologies (VOYG), Rocket Lab (RKLB), and Planet Labs (PL), which sank between 8% and 27%.
Oil Tumbles on U.S.-Iran Talks
Oil prices were lower after Iran and the U.S. gave conflicting accounts of the terms of a draft agreement to end their war. President Donald Trump wrote on Truth Social that "terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing," but Iranian Foreign Minister Seyed Abbas Araghchi later wrote on X that a memorandum of understanding "has never been closer."
West Texas Intermediate futures, the U.S. crude oil benchmark, were 3.8% lower at $84.35 a barrel at 4 p.m. ET, while front-month contracts of Brent crude, the global benchmark, settled down about 3.5% at $87.33.
The pullback helped travel stocks. Airlines Delta (DAL), United (UAL), and American (AAL) and cruise operators Royal Caribbean (RCL), Carnival (CCL), and Norwegian Cruise Line Holdings (NCLH) all advanced. Fuel is the second-biggest cost airlines and cruise companies have, behind just labor.
Gas Prices Fall Below $4 in Nearly Half of States
Drivers are getting more relief at the pump after gas prices fell for a third straight week, bringing the national average for regular gasoline down 45 cents from its mid-May peak of $4.56 to $4.11 a gallon. The decline has been broad enough to push two dozen states below $4 a gallon, a notable reversal from the peak, when all 50 states were above that mark.
Gas prices surged this year as the Iran conflict rattled global energy markets and pushed oil prices sharply higher. Before the conflict began, the national average held in $2 territory for much of December, January, and February—the first sustained stretch in that range in almost five years.
Economic Warning Signs and the Fed
There's a growing disconnect between what the official data says about the job market and how it feels to workers. The University of Michigan's Survey of Consumer Sentiment showed ongoing pessimism, with a net 54% of respondents expecting the unemployment rate to rise over the next 12 months, close to a historic high. "That reading is on a par with the readings experienced during the Global Financial Crisis and the early 1990s recession," James Knightley, chief international economist at ING, noted.
Two pieces of economic data released Thursday carried a whiff of "stagflation." The Producer Price Index for final demand rose 1.1% over the month and 6.5% over the 12 months ending in May, the largest annual increase since November 2022. Separately, 229,000 people filed new unemployment claims last week, the most since February.
Analysts warned of potential "demand destruction"—when prices are so high that people spend less. "It could be very serious, especially if the Strait of Hormuz remains closed for quite a while more," said Tuan Nguyen, an economist at RSM US LLP. Meanwhile, the Federal Reserve will hold its first meeting under new management next week, with markets pricing in a 96% chance it keeps the fed funds rate flat.
Other Corporate Moves and Markets
Nvidia (NVDA) has started telling customers in China that its next-generation AI chip, the Vera CPU, could become available there as soon as August, Reuters reported. Flutter Entertainment (FLUT), the parent of FanDuel, plans to delist from the London Stock Exchange as of Aug. 3. Sleep Number (SNBR) filed for Chapter 11 bankruptcy and intends to combine with Sleep Country Canada.
In other markets, the 10-year Treasury yield was near 4.49%, up from Thursday's close around 4.47%. Bitcoin traded around $63,600, little changed over 24 hours. The U.S. dollar index was 0.1% lower at 99.78, while gold futures rose almost 3% to $4,230 an ounce. For the year, the Nasdaq, S&P 500, and Dow are up roughly 11%, 8.5%, and 6.5%, respectively.
Frequently Asked Questions
How much did SpaceX raise in its IPO?
SpaceX raised about $75 billion by selling roughly 556 million shares at $135 each, marking the largest IPO in history. Its implied market capitalization came in around $1.8 trillion.
Is Elon Musk a trillionaire now?
On paper, yes. Following the SpaceX debut, Forbes' real-time tracker put Musk's net worth at $1.1 trillion, driven by his 4.76 billion SpaceX shares plus his roughly 11% stake in Tesla.
Why did Adobe stock fall?
Adobe sank nearly 7% to an eight-year low after warning that its "freemium" AI strategy and delayed price increases could pressure short-term revenue growth, and after announcing CFO Dan Durn's departure to Marvell Technology.
Why are oil and gas prices falling?
Oil prices dropped on optimism that the U.S. and Iran were near a deal to end their war and reopen the Strait of Hormuz. That has helped push gas prices below $4 a gallon in nearly half of U.S. states.
Outlook
The SpaceX debut capped a strong week for major indexes, all of which closed higher after a down week prior. But beneath the rally, mixed signals persist: a softening job market, rising wholesale inflation, and the unresolved Iran conflict that could either ease gas prices further or reignite supply worries. With the Federal Reserve's first meeting under new leadership next week and rates widely expected to stay flat, investors will be watching how policymakers navigate stagflation risks in the months ahead.
