For the first time in weeks, investors had jitters about the war in the Middle East, the runaway chip rally, and higher interest rates. Then came the SpaceX IPO.
The space-exploration company's market debut went off without a hitch on Friday, instantly making Elon Musk's rocket company one of the highest-valued in the U.S., at a market capitalization of $2.1 trillion.
One crucial ingredient for the stock's double-digit price surge proved to be a massive wave of do-it-yourself traders, who bought some $18 million of SpaceX stock in the first 20 minutes of trading, according to Vanda Research.
By the end of the day, net retail purchases totaled roughly $118 million—the biggest IPO for individual investors in recent history, Vanda analysts said.
The widespread enthusiasm was a welcome end to one of the most volatile weeks in markets this year. And it wasn't just SpaceX that benefited. Almost everything else rose on Friday: banks and financial firms, semiconductor stocks, even shares of smaller companies—extending gains sparked by the latest signs of an end to fighting in the Middle East.
Analysts said the reception to SpaceX was a good omen for two major artificial-intelligence IPOs expected later this year. It was also an encouraging sign that investors might not have totally soured on riskier tech bets, hit in recent days by worries about the artificial-intelligence rally, higher rates and the war.
