[New York Stock Market] SpaceX Soars 19%... All Indices Rise as Ceasefire MOU Nears Completion

AI Investment Sentiment Rises on Successful SpaceX Debut
Ceasefire Nears as Final MOU Negotiations Continue

On the 12th (local time), all three major indices of the New York Stock Exchange closed higher. Investor sentiment was buoyed by the successful debut of SpaceX on the Nasdaq, which had attracted significant market attention, and by expectations that the war in Iran may soon come to an end.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 52,202.29, up 353.54 points (0.70%) from the previous trading day. The S&P 500 Index, which focuses on large-cap stocks, rose by 37.16 points (0.50%) to close at 7,431.46, while the tech-heavy Nasdaq Index jumped 79.184 points (0.31%) to finish at 20,588.844.

Inside the New York Stock Exchange. New York, USA - Photo by Yoonju Hwang

SpaceX Makes a Successful Debut...Investors Bet on the AI Industry

On its first day of listing, SpaceX saw a strong surge, lifting investor sentiment in the U.S. stock market. As capital poured into the growth story that combines artificial intelligence (AI) and the space industry, the market is evaluating this IPO as a potential watershed moment that could set the direction for the tech stock rally in the second half of this year.

SpaceX, which began trading on the Nasdaq, opened at $150—11% above its IPO price of $135. Although the price soared to an intraday high of $168.75 and then gave up some gains, it maintained a strong uptrend. The stock closed at $160.95, 19% higher than the IPO price.

On its first day, SpaceX's market capitalization exceeded $2 trillion, ranking it among the global top tier after mega-cap tech stocks such as Nvidia, Apple, and Microsoft. As the largest IPO in history, it drew overwhelming market attention. The listing raised approximately $75 billion, while the size of pre-order demand surpassed $350 billion.

Notably, participation from both institutional and individual investors stood out. A large number of orders from U.S. retail investors led to a buy-side imbalance immediately after the Nasdaq opening, causing delays in price discovery. According to the Wall Street Journal (WSJ), the market views SpaceX not just as an aerospace company but as a next-generation platform company encompassing satellite internet (Starlink), AI infrastructure, and data center businesses.

Mark Klein, CEO of Suro Capital, said, "The chaotic-looking IPO queue has been long anticipated," adding, "SpaceX will lead this trend."

He continued, "Looking at the future IPO market, there are many companies that want to go public, but since capital is concentrated in a few, important companies may choose to wait and observe the situation."

The strength of SpaceX also had a positive effect on other tech stocks. Expectations for AI infrastructure investment widened, leading to gains in semiconductor and cloud-related stocks, while the recent easing of Middle East risks revived risk appetite, favoring growth stocks.

Nvidia rose 0.13%, AMD 4.73%, Alphabet 0.53%, and Tesla 1.82%. On the other hand, Broadcom fell 0.91% and Amazon dropped 1.24%.

However, there were also concerns about valuation. According to the Guardian, SpaceX's corporate value is now estimated to be more than 100 times last year's revenue, and questions remain about whether profitability has been sufficiently proven. In fact, despite revenues of $18.7 billion last year, SpaceX reportedly posted an operating loss in the billions of dollars.

Nevertheless, Wall Street interprets this listing as a strong market bet on the AI and space industries. The success of the SpaceX IPO is also fueling expectations for future listings of major AI companies such as OpenAI and Anthropic, and it is likely to become a new benchmark for the IPO market in 2026.

Jeff Kilburg, CEO of KKM Financial, said, "The AI theme is getting stronger, and the leadership of the Magnificent Seven will continue," adding, "There have been some moves in the Nasdaq, which are probably due more to geopolitical tensions than to the SpaceX IPO."

Will the War Really End? ...MOU Signing Imminent

A sense that the war in Iran is drawing to a close is also taking hold. With the signing of a memorandum of understanding (MOU) imminent, Iran and the United States appear to be engaging in last-minute negotiations. On the 12th (local time), Iranian Parliamentary Speaker Mohammad Bagher Ghalibaf posted on social media platform X (formerly Twitter), "A promise once made must be kept," and "No precondition, exception, or excuse will be accepted."

He added, "There is no other way for an agreement that is on the verge of being reached," and "You will reap what you sow." This is interpreted as a warning to the U.S. not to introduce additional conditions or delay the implementation of the agreement at the last minute.

According to the 14-point draft of the ceasefire MOU released by Iran's state-run Mehr News Agency, the military section includes an immediate and permanent cessation of hostilities on all fronts, including Lebanon; non-interference in Iran's internal affairs and respect for sovereignty; a complete lifting of the U.S. maritime blockade against Iran within 30 days; and the withdrawal of U.S. forces from areas surrounding Iran.

On the economic front, provisions include the resumption of passage through the Strait of Hormuz within 30 days in line with Iran’s actions, the suspension of sanctions on oil, petrochemical products, and derivatives, and guaranteeing Iran’s full access to financial assets. The plan also includes a proposal for the U.S. and its allies to present a reconstruction program for Iran worth at least $300 billion (about 450 trillion won).

Regarding the nuclear issue, the parties agreed to hold technical negotiations for a final agreement over the next 60 days. The agenda covers all aspects of Iran's nuclear issue, the first and second rounds of U.S. sanctions, United Nations Security Council resolutions, and International Atomic Energy Agency (IAEA) Board resolutions. During this period, Iran reaffirmed its pledge not to produce nuclear weapons, while the U.S. agreed to suspend additional troop deployments and new sanctions in the Middle East during the negotiations.

However, the contents of the MOU released by the Trump administration are much tougher than the Iranian draft. During a briefing on the same day, a senior Trump administration official stated that the MOU includes the complete dismantlement of Iran's nuclear program, closure of nuclear facilities, disposal and removal of nuclear materials, and a codified pledge that Iran will not develop or possess nuclear weapons indefinitely. The U.S. plans to provide economic benefits in stages depending on the level of implementation.

As a result, U.S. West Texas Intermediate (WTI) crude for July delivery dropped 3.23% to $84.88 a barrel on the New York Mercantile Exchange. Brent crude for August delivery on the ICE Futures Exchange fell 3.37% to $87.33 a barrel.

This content was produced with the assistance of AI translation services.