4:15pm: SpaceX launches into public markets
Wall Street wrapped up the week on a positive note Friday, with investors cheering the blockbuster stock market debut of SpaceX.
The Dow Jones Industrial Average climbed 354 points, or 0.7%, to close at 51,202, while the S&P 500 gained 37 points, or 0.5%, to finish at 7,431. The Nasdaq Composite added 79 points, or 0.3%, ending the session at 25,889.
The day's biggest story was SpaceX, which surged 19% in its first day of trading after one of the most anticipated IPOs in market history. The stock closed near $161, well above its offering price, giving the company a market valuation of roughly $2.1 trillion and underscoring strong investor appetite for high-growth technology and space-related businesses.
The strong debut helped lift broader market sentiment and offset lingering concerns about volatility in the technology sector. By the closing bell, all three major indexes had posted gains, capping off a solid week for equities as investors embraced risk and welcomed a landmark addition to the public markets.
2:15pm: SpaceX keeps gaining
SpaceX stock peaked around $175 a share just hours into trading but lost a little bit of ground during the afternoon, now sitting just below $170.
It still is the largest IPO ever, though.
1:05pm: Adobe beat overshadowed by CFO departure
Adobe Inc (NASDAQ:ADBE) shares fell 6.7% on Friday after the software company cut its organic annual recurring revenue growth guidance, announced a surprise CFO departure, and signaled a shift toward freemium AI products that analysts say leaves key monetization questions unanswered.
The company reported fiscal second-quarter revenue of $6.62 billion, up 12.7% year-over-year and ahead of its guidance range, with non-GAAP earnings per share of $5.96 also beating forecasts.
But the results were overshadowed by a reduction in organic ARR growth guidance and the abrupt departure of CFO Dan Durn, who is leaving to become CFO of Marvell Technology.
"While the push for customer acquisition is likely the right strategy, it adds to the list of transition items and leaves AI monetization unanswered," Jefferies wrote, noting valuation is depressed but that it sees no near-term catalyst.
12:10pm: SpaceX opens at $150
SpaceX’s closely watched public debut is off to a flying start.
The stock, trading under $SPCX, opened at $150 after pricing its IPO at $135 — already signaling strong demand right out of the gate. Before the open, CNBC reported indications of a $175 launch price, underscoring just how heated expectations had become heading into the listing.
Since trading began, momentum has stayed firm. The shares have climbed to about $159.18, up roughly 18% in the first stretch of trading as investors pile into what is shaping up to be one of the most closely followed IPOs in years.
It’s a volatile but upbeat start, with early price action suggesting the market is still trying to find equilibrium after a heavily anticipated debut.
12:00pm: Risks to mega-IPOs: Holmes
Three of the world’s most valuable private companies—SpaceX, Anthropic and OpenAI—are preparing to enter public markets in what could become one of the largest IPO waves in history.
“I’ve witnessed a lot of IPO cycles over my decadeslong career, and there are some risks,” U.S. Global Investors CEO Frank Holmes wrote earlier this week.
“(C)onsider that the companies bringing these IPOs to market, and the investment banks underwriting them, have every incentive to price them at the upper bound of what investors will pay. The runway for publicly-funded growth has to justify the valuation already baked in the price.
“For SpaceX specifically, that means believing not just in Starlink’s subscriber trajectory—which is genuinely impressive—but also in technologies that don’t exist yet, such as orbital data centers and Mars colonization. I look forward to seeing Elon Musk execute on two these fronts, but for now, the timeline is up in the air.”
Read more of what Holmes has to say about these trillion-dollar IPOs here.
11:00am: SpaceX indicative price auction
The indicative opening price of SpaceX is falling, but still well above the $135 issue price.
Trading may begin around 12:30pm ET, some are saying, or maybe earlier, as the auction to decide the opening price continues.
Shares were recently indicated to open at around $162.5 each.
First indications were for a price of $174, then $171, then $170, then $168.75 before a bigger drop.
Don't forget, index and tracker funds for Nasdaq, Russell and FTSE indices have a 15-day deadline to buy shares.
An extra nugget within the SpaceX story is that Elon Musk, who owns about 42% of SpaceX, now looks like he is going to become the first dollar trillionaire.
10am: Whipsaw open after new Trump post on 'dishonest' Iran
US stocks opened higher but solid gains were immediately wiped out after confusion emerged about the purported Iran peace deal.
The Nasdaq has whipsawed down 0.5%, the S&P is down 0.2% and the Dow Jones is up 0.1%, having opened up around 0.6% higher in initial trades.
President Donald Trump posted on social media just minutes after the opening bell: "The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing."
He says Tehran's statement is "dishonourable" and "bears no relation to the truth" and that "they better get their act together, and FAST".
Oil prices have also spiked back to where they were at midnight, with Brent back up to $89 a barrel.
In other news, SpaceX shares have been indicated to open at $171 in their Nasdaq debut, up from the $135 IPO price. An auction will take place before investors can trade the shares on the open market.
8am: US stock futures rise
Wall Street is heading for a firmer open on Friday, with futures ticking higher as investors weigh President Donald Trump’s sudden shift on Iran and turn attention to a blockbuster market debut.
Dow futures are up 0.6%, while those for the S&P 500 and the Nasdaq futures are up 0.5%, extending Thursday’s strong gains. That rally came after Trump said planned US military strikes on Iran were cancelled and suggested a peace deal could be close, with the Nasdaq jumping 2.5%, the Dow up 1.9% and the S&P 500 gaining 1.8% as risk appetite returned.
Today, though, geopolitics looks set to fade into the background. All eyes are on the long-awaited IPO of SpaceX (NASDAQ:SPCX), which is expected to dominate trading.
Interactive Investor’s Richard Hunter said markets had already been buoyed by easing Middle East tensions, but added: “For the US there is only one show in town today.”
He pointed to an unusual listing process, including a fixed $135 share price, unusually broad retail access and a heavily marketed offering. The IPO is set to raise around $75 billion, valuing the company at roughly $1.75 trillion.
There is also likely to be structural demand from index funds. The Nasdaq has adjusted its rules to allow fast-track inclusion, meaning tracker funds will be forced buyers once the stock enters the benchmark. Hunter said that will create “significant additional buying pressure” as investors assess how large a weighting SpaceX will carry from day one.
Meanwhile, other global markets have joined in on the rally on hopes that a peace deal between the US and Iran could be sealed this weekend.
In London, the FTSE 100 is off its early highs but is still 1.2% firmer. In Frankfurt, the DAX has gained 1.7%, while the Paris CAC 40 is up 1.9%.
In Asia, Tokyo's Nikkei 225 rose 2.8%, Hong Kong's gained 1.9%, and Shanghai's SSE Composite added 1.1%. Seoul's Kospi jumped 4.6% as foreign investors tucked into South Korean shares, including Samsung Electronics (KRX:005930) and SK Hynix, after a 35-day absence. Sydney's ASX 200 closed 2% higher.