Wall Street Rises, SpaceX and Iran Peace Hopes Support
US stocks closed higher on Friday (June 12th) after investors cheered hopes for a peace deal between the United States and Iran, as well as SpaceX's big debut on the Nasdaq. Market sentiment improved after a senior US official said a draft proposal was available and favored by both sides, despite President Donald Trump's previous statements that an Iran deal was close but not yet realized.
Based on preliminary data, the S&P 500 rose 0.51% to 7,431.83, the Nasdaq Composite gained 0.30% to 25,887.43, while the Dow Jones Industrial Average rose 0.71% to 51,208.20. These gains indicate investors are returning to risk after several sessions where the market was pressured by the Middle East conflict, inflation, and a decline in the technology sector.
The market's primary focus is on SpaceX, which began trading on the Nasdaq on Friday. Shares of Elon Musk's company surged above its IPO price of US$135 per share, pushing its valuation past US$2 trillion and making it one of the largest public companies in the US. This debut also marked the largest public listing in Wall Street history.
However, the euphoria surrounding SpaceX didn't fully lift other space stocks. Shares of Rocket Lab, Intuitive Machines, and Planet Labs weakened after rising sharply ahead of the SpaceX IPO. This movement suggests some investors are taking profits after the sector's earlier gains in recent weeks.
On the macro front, investors are shifting their focus to next week's Federal Reserve policy meeting, which will be the first under Kevin Warsh's leadership. The market is still weighing the impact of inflation and interest rates, especially after outflows from US equities emerged for the first time in three weeks and the technology index briefly entered a correction earlier this week.
Overall, Wall Street's gains were supported by a combination of hopes for a US-Iran peace deal and enthusiasm for the SpaceX IPO. However, risks have not completely disappeared. The market still needs to monitor whether the Iran deal is truly reached, the direction of the Fed's policy, and whether high valuations in the technology and AI sectors can be maintained after the IPO euphoria subsides. (arl)*
Source: Newsmaker.id
