Late Thursday, U.S. stock futures moved higher as investors prepared for what could become the largest initial public offering in history, with Elon Musk's SpaceX set to make its Nasdaq debut at a valuation of approximately $1.77 trillion.
Dow Jones Jumps 930 Points, Nasdaq Surges As Futures Rise
Futures remained positive, with Dow futures up 31 points (0.06%) at 50,906.00, S&P 500 futures rising 17 points (0.23%) to 7,413.00 and Nasdaq futures gaining 134.75 points (0.46%) to 29,599.50 as of 8:53 p.m. EDT.
As of 8:53 p.m. EDT, U.S. markets closed sharply higher, with the Dow Jones Industrial Average gaining 929.97 points (1.86%) to finish at 50,848.75, while the S&P 500 advanced 127.31 points (1.75%) to 7,394.30.
The Nasdaq Composite surged 640.16 points (2.54%) to 25,809.66 and the Nasdaq-100 climbed 938.15 points (3.29%) to 29,446.18.
Meanwhile, the U.S. Dollar Index (DXY) traded at 99.824, up 0.15%. In Asia, markets rallied strongly, with South Korea’s KOSPI jumping 618.52 points (7.97%) to 8,382.47, while Japan’s Nikkei 225 gained 2,252.01 points (3.51%) to 66,469.28.
SpaceX Eyes Historic IPO
SpaceX is expected to begin trading under the ticker symbol SPCX after pricing its shares at $135 each on Friday. The company plans to sell roughly 555.6 million shares, raising about $75 billion and eclipsing the previous record for a U.S. IPO.
The offering comes as investors attempt to determine how much of SpaceX’s value is tied to its profitable satellite internet business and how much rests on longer-term, cash-intensive projects.
Starlink Remains The Company’s Financial Engine
Starlink generated approximately $11.4 billion in revenue during 2025, accounting for 61% of SpaceX’s total revenue.
The satellite internet unit reportedly produced operating income of about $4.4 billion on margins of roughly 36%, supported by more than 10 million subscribers across 164 countries.
Starship And xAI Continue To Consume Capital
SpaceX’s launch services business generated an estimated $4 billion in revenue last year, benefiting from the company’s dominance in orbital launches.
However, development of Starship, the next-generation rocket central to SpaceX’s long-term ambitions, reportedly consumes about $3 billion annually in research and development spending.
Meanwhile, artificial intelligence venture xAI generated roughly $3.2 billion in revenue while posting an operating loss of about $6.4 billion in 2025. Estimates suggest the business could burn as much as $10 billion this year.
Wall Street Bulls See Massive Upside For SpaceX
New Street Research analyst Pierre Ferragu initiated coverage of SpaceX ahead of its IPO with a $165 price target. Ferragu estimates the stock could reach $330 by 2040 if the company’s addressable market expands as expected, implying potential upside of about 144% from the IPO price.
Joe Lonsdale, co-founder of Palantir Technologies (NASDAQ:PLTR) and managing partner at 8VC, dismissed concerns about SpaceX’s valuation ahead of its Nasdaq debut, arguing that investors are underestimating the company’s long-term potential.
Investor demand for the IPO has reportedly topped $250 billion, exceeding the company’s $75 billion target and making the offering heavily oversubscribed ahead of its June 12 launch.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Samuel Boivin on Shutterstock.com
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