SpaceX IPO Boosts Wall Street
Wall Street closed sharply higher on Thursday (June 11th) after US President Donald Trump canceled plans to attack Iran. This decision eased market concerns about a new military escalation in the Middle East and encouraged investors to return to riskier assets.
The S&P 500 rose 1.75% to 7,393.85, the Nasdaq Composite gained 2.53% to 25,801.47, while the Dow Jones Industrial Average jumped 1.84% to 50,847.50. These gains extended a rebound after the previous session's major Wall Street indexes fell more than 1%.
Sentiment improved after Trump said negotiations with Tehran had been brought to the highest levels of Iranian leadership and had the support of several regional countries. This statement sent oil prices sharply lower as the market began to unwind some of the geopolitical risk premium that had arisen from the US-Iran conflict and disruptions in the Strait of Hormuz.
Market momentum was also supported by enthusiasm ahead of SpaceX's debut on the stock exchange. Elon Musk's company priced its IPO at US$135 per share, raising approximately US$75 billion and achieving a valuation of US$1.77 trillion. SpaceX shares are scheduled to begin trading on Friday, making it one of the largest IPOs in US history.
However, not all macroeconomic factors are favorable. Data showed that the US PPI rose more than expected in May, recording its largest annual increase in more than three years. This figure maintains concerns that inflationary pressures remain strong, especially after the Middle East conflict previously pushed energy prices higher.
On the monetary policy front, the Fed is expected to maintain interest rates at its meeting next week. However, the market is still pricing in at least one 25 basis point increase by the end of the year. This means that Wall Street's current rebound is driven more by easing geopolitical risks and IPO euphoria, while inflation and interest rate risks remain constraints. (Arl)
Source: Newsmaker.id
