2 Reasons July 7 Is Shaping Up as a Monster Day for SpaceX

June has been a history-maker for Wall Street. Not lone did the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite catapult to caller highs earlier this month, but investors besides witnessed the largest-ever archetypal nationalist offering (IPO) instrumentality shape, courtesy of Space Exploration Technologies (SpaceX)(NASDAQ: SPCX).

Elon Musk's artificial quality (AI) and abstraction system conglomerate debuted connected June 12 and yet raised $85.7 cardinal (including the underwriters' overallotment) -- astir triple the magnitude that overseas lipid elephantine Saudi Aramco raised with its December 2019 IPO.

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However, the biggest fireworks for SpaceX are yet to come. Thanks to 2 converging events, July 7 is shaping up to beryllium a monster time for this $2 trillion AI and abstraction company.

Nasdaq-100 inclusion is close astir the country

Before SpaceX went public, respective committees amended the criteria for the inclusion of megacap stocks successful large indexes.

For instance, the U.S. Russell Indexes drastically shortened the inclusion timeline for recently nationalist large-cap stocks from erstwhile per 4th to conscionable 5 trading sessions.

But the header alteration came courtesy of the Nasdaq (NASDAQ: NDAQ) Global Indexes. Effective May 1, the debased interval request for inclusion successful the Nasdaq-100 has been waived.

More importantly, immoderate non-financial institution that would fertile among the 40 largest companies successful the Nasdaq-100 tin beryllium fast-tracked into the scale aft 15 trading days. Accounting for the Juneteenth and Independence Day holidays, July 6 marks the 15th trading time for SpaceX stock.

As aboriginal arsenic July 7, SpaceX volition beryllium eligible for summation to the growth-stock-dominated Nasdaq-100. Index funds and growth-focused exchange-traded funds that way the Nasdaq-100 volition beryllium required to acquisition shares of SpaceX stock. The company's inclusion successful the Russell 1000, Russell 3000, and Nasdaq-100 should pb to tens of billions of dollars successful buying demand.

The participating underwriters' quiescent play ends

However, Nasdaq-100 inclusion eligibility isn't the lone catalyst that aligns connected July 7. It's besides the extremity of the participating underwriters' quiescent period.

Most IPOs person a pb underwriter and a mates of participating underwriters (usually large banks/financial institutions). SpaceX had 21 underwriters, with Goldman Sachs arsenic the lead.