SpaceX shares surged 2% Wednesday, propelling Elon Musk's company past Amazon in market capitalization for the first time since its blockbuster IPO last Friday. The milestone came amid a broader rally that saw the Dow Jones Industrial Average hit a record, though gains wavered as markets braced for the Fed's rate decision later today.
The move extends SpaceX's post-IPO momentum, driven by investor enthusiasm for its space and AI ambitions. The broader market gains had been initially fueled by a reported draft memorandum between the US and Iran that would provide Tehran with major financial relief, sending oil prices lower. However, the Dow waffled ahead of Fed Chair Kevin Warsh's remarks, with traders parsing his first policy decision for clues on the rate path.
Bitcoin pulled back from $67,000 as the Fed's hawkish lean wiped out earlier rate-cut expectations. The cryptocurrency's slide contrasted sharply with SpaceX's rally, highlighting the diverging narratives across asset classes. The Nasdaq also faced headwinds, though the space sector broadly benefited from the SpaceX euphoria.
Analysts caution that the Fed's decision could undermine risk assets if Warsh signals a prolonged tightening cycle. Ian Lyngen of BMO Capital Markets noted that markets are searching for clarity on the central bank's stance, which will likely determine the next leg for equities and crypto alike.