SpaceX shares fell 5% on Wednesday after a three-day winning streak followed by a pullback.

After surging nearly 50% since its IPO, SpaceX shares fell for the first time on Wednesday (June 17), ending a three-day winning streak.

The space technology company, led by Elon Musk, the world's richest man , saw its stock price rise as much as 6% during Wednesday's trading session, but subsequently reversed course and closed down about 5% at $191.82.

This pullback has pushed SpaceX's market capitalization below Amazon's , dropping to approximately $2.5 trillion (about S$3.2 trillion), making it the sixth-largest company in the world by market capitalization. However, based on the closing price, SpaceX is still more than 42% above its initial public offering (IPO) price of $135.

Market analysts believe that SpaceX's significant intraday stock price fluctuations are partly due to the limited number of shares in circulation, which was also a factor driving the stock price surge. On its first day of trading, only about 4.2% of the total share capital was available for trading. In the coming months, as the lock-up period for insider shares expires and market supply increases, the stock price may face downward pressure.

The U.S. Federal Reserve announced its interest rate decision on Wednesday, maintaining the target range for the federal funds rate at 3.50% to 3.75%. Furthermore, differing views among Fed officials regarding the future path of interest rates added uncertainty to the market, dragging down U.S. stocks.

The Nasdaq Composite Index, which reflects the performance of technology stocks , fell 1.34% to close at 26,021.66. The S&P 500 Index declined 1.21% to close at 7,420.10. The Dow Jones Industrial Average dropped 0.98% to 51,492.55.

According to Vanda Research, before Wednesday's pullback, SpaceX had been the most net purchased stock by retail investors for several consecutive days, attracting inflows equivalent to the combined inflows into Nvidia , Alphabet , Amazon, Meta Platforms, and major exchange-traded funds (ETFs) that track the Nasdaq 100 and S&P 500 indices.

Meanwhile, Tesla recorded net selling of approximately $61 million.

The Vanda Research report states, "Investors may be shifting from one deal related to Musk to another. SpaceX is increasingly being seen as an investment company more focused on artificial intelligence and technology."

Furthermore, SpaceX is expected to be included in major stock indices in the coming weeks. Nasdaq has amended its rules to allow larger companies to be included in its indices more quickly, meaning funds tracking the Nasdaq 100 index may be able to buy SpaceX stock in the future. Under current rules, SpaceX would qualify for inclusion in the Nasdaq 100 index after 15 trading days on the market.

However, S&P Dow Jones Indices has not yet adjusted its rules, so SpaceX will not be included in the S&P 500 index in the short term. Under current standards, a company must be listed for at least 12 months and meet requirements regarding profitability and public shareholding to be eligible for inclusion in this important index.

Passive buying by funds due to index adjustments is expected to support the share price. However, some investors may choose to wait and see before the adjustments are finalized, as they could indirectly hold SpaceX shares through investment vehicles that track the relevant index if it is subsequently included in the index.

Source: [Lianhe Zaobao] (https://www.zaobao.com/finance/world/story20260618-9224664)