Wall Street ends higher as SpaceX’s market debut dominates

U.S. stock markets ended higher on Friday, driven by SpaceX’s Nasdaq debut and hopes for a U.S.-Iran peace deal. SpaceX shares closed 19.2% higher at $160.95, valuing the company at $2.1 trillion—the largest public listing in Wall Street history. The surge overshadowed other space stocks, which declined, with Rocket Lab down 10.8%, Intuitive Machines off 13.1%, and Planet Labs down 8.8%. A senior U.S. administration official confirmed a draft peace proposal between the U.S. and Iran was nearing approval, with President Donald Trump previously stating a deal was close. This progress lifted market sentiment, reducing fears of rising oil prices and inflation. Analysts noted that a potential peace deal could ease pressure on the Federal Reserve’s monetary policy, with traders anticipating a 55% chance of a rate hike by December under new Fed leadership. The major indexes closed mixed but positive: the Dow Jones rose 0.70% to 51,202.26, the S&P 500 gained 0.50% to 7,431.46, and the Nasdaq Composite climbed 0.31% to 25,888.84. The Russell 2000 hit a record high, while weekly gains for all three indexes neared 7%. However, U.S. equity funds saw their first outflow in three weeks, and tech stocks confirmed a correction ahead of SpaceX’s IPO. SpaceX’s valuation sparked debate among analysts, with some citing concerns over its $4 billion annual losses. Despite this, shares showed minimal volatility, surprising observers given the hype. Tesla, another Elon Musk company, rose 1.8%, while Adobe dropped 6.8% following its CFO’s departure. The NYSE saw 372 new highs, and the Nasdaq recorded 200 new highs, though volume dipped slightly to 19.73 billion shares. Investors also awaited upcoming AI company IPOs, including OpenAI and Anthropic, later this year. SpaceX’s debut highlighted its defiance of traditional Wall Street metrics, with its valuation far exceeding earnings. Analysts warned sentiment could shift if fundamentals fail to support the price, though for now, optimism remains high.