US Stock Market Today: S&P 500 Rises as Traders Await SpaceX’s First NASDAQ Trade and Iran Deal Talks

The S&P 500 saw a sharp rise on Friday as traders focused on SpaceX’s expected NASDAQ debut and new reports on a possible US-Iran agreement. The broad index gained 0.7%, while the NASDAQ Composite added 0.6%. The Dow Jones Industrial Average advanced 497 points, or 1%.

SpaceX is set to trade under the ticker SPCX later in the session. Indications pointed to an opening price near $165 per share, above its $135 IPO price. 

SpaceX IPO Takes Focus as S&P 500 Rises 

SpaceX’s listing became the main event for Wall Street on Friday. The company plans to sell 555.6 million shares and raise about $75 billion. That would make it the largest initial public offering on record, above Alibaba’s $22 billion offering in 2014.

Market indications shifted during the morning. Earlier readings pointed to an opening price near $175 per share, while later levels moved closer to $165. Both remained well above the IPO price, showing strong demand before the first trade.

The large offering has also raised questions about market liquidity. Some traders are watching whether investors will sell other holdings to fund SpaceX allocations. A deal of this size can draw capital from other parts of the market, especially after a strong run in major technology names.

“Just from a pure market history perspective, being alive to see it is a phenomenal moment in time,” said Will Rhind, founder and CEO of GraniteShares.

Space-Linked Stocks Pull Back

Several space-related stocks declined before SpaceX’s first trade. Rocket Lab fell about 7%, while Redwire dropped more than 6%. AST SpaceMobile lost 10%, and EchoStar, which has a stake in SpaceX, slipped more than 6%.

The declines followed premarket gains across the group. The move suggested that some traders reduced exposure before the main listing. Others appeared to rotate toward vehicles with direct SpaceX exposure as the debut approached.

“What we’ve seen with many high-profile IPOs is an initial surge in price followed by a period where investors give some of those gains back,” said Jay Woods, chief strategist at Freedom Capital Markets.

“My concern is that retail investors who receive allocations may not take profits soon enough and could get hurt if the stock pulls back,” he added.

Iran Peace Deal Hopes Pressure Crude Oil 

Reports about a possible US-Iran deal helped support broader market sentiment. Iranian state media said the draft memorandum of understanding includes a U.S. commitment to lift oil sanctions. It also includes an Iranian commitment to reopen the Strait of Hormuz.

The Strait remains one of the world’s most important oil routes. Any reopening would reduce fears of supply disruption and could ease pressure on crude prices. West Texas Intermediate crude futures were last down about 3% near $84 per barrel.

However, markets still tracked mixed signals from officials. President Donald Trump warned that Iran “better get their act together,” even as reports said a deal was on the table. A peace deal could be signed in Switzerland as soon as Sunday, according to reports citing people familiar with the plans.

Fed Rate Decision Moves Into View

The Federal Reserve’s meeting next week remains another key event for investors. The central bank is widely expected to hold interest rates steady on Wednesday. However, traders will watch Chair Kevin Warsh’s first policy meeting as head of the Fed.

Recent economic data has kept rate concerns alive. U.S. consumer inflation rose in May at its fastest pace in three years. Solid employment figures also added to expectations that policymakers may keep a hawkish tone.

“As we’ve seen at times in the past, it can be a bit of a challenge for a newer Fed chief to get the message right, to stick the landing,” said Jim Baird, chief investment officer with Plante Moran Financial Advisors.

Stocks Advance in Choppy Session

The S&P 500 rose despite uneven trading earlier in the session. The index had recently pulled back from its June 2 record closing high, while the NASDAQ weakened as technology shares cooled.

Nine of the 11 major S&P 500 sectors traded higher. Materials led gains. Chip stocks moved unevenly, with Intel rising and Advanced Micro Devices gaining after a rating upgrade. However, Amazon and Microsoft traded lower.

Adobe also declined after the company announced CFO Dan Durn’s exit. Meanwhile, advancing stocks outnumbered decliners on both the New York Stock Exchange and the NASDAQ.

Traders now await SpaceX’s first trade, confirmed details on the U.S.-Iran talks, and the Federal Reserve’s policy message next week.

Also Read: Elon Musk Becomes the World's First Trillionaire as SpaceX IPO Pushes Fortune Beyond $1 Trillion