Investors will watch what happens next with SpaceX , now that its initial public offering is behind it. SpaceX is already being lauded as a success after making its debut on the Nasdaq, opening at $150 per share after an IPO price of $135 a share. It closed at $160.95 per share, after rallying more than 19%. Whether SpaceX can maintain its momentum in the coming days will be telling. IPOs are notoriously volatile, and where a stock starts out is not necessarily reflective of future performance. Facebook-parent Meta’s IPO, for example, was panned as a debacle, and the stock took more than a year to recover its debut price. More recently, Cerebras Systems , which was the biggest IPO this year up until SpaceX, shot up 68% in its Nasdaq debut last month, but has since come down sharply. But the early enthusiasm is promising. Demand heading into the SpaceX IPO was reportedly four times oversubscribed, a sign that more investors will want a piece of the company in the coming days and weeks. SpaceX, which has yet to trade for a full session, is set to enter the Nasdaq-100 alongside other indexes 15 trading days after its debut. A bona fide frenzy of options contracts are also set to roll out in the coming days to accommodate the massive retail demand for the rocket maker, also adding to the volatility. “We have to watch the aftermarket,” said Jay Woods, chief market strategist at Freedom Capital Markets. “Watch the end of the day Friday, and watch how we trade Monday, Tuesday, Wednesday.” Stock churn If the SpaceX debut can keep alive animal spirits on the Street, that could bode well for the tech trade. Semiconductors have posted drastic moves up and down this month that were at least partly attributed to the massive need for liquidity ahead of the IPO. The iShares Semiconductor ETF (SOXX) is set to end the week up more than 11%, after tumbling nearly 6% the prior week. Wolfe Research’s Rob Ginsberg noted on Thursday that chip stocks have not crossed below the 21-day support level, a short-term indicator. But Freedom Capital’s Woods said investors who want to ride out the volatility around the SpaceX IPO should diversify their holdings beyond tech, into the broader market that has started to outperform. The Invesco S & P 500 Equal Weight ETF (RSP) has outpaced the market cap weighted benchmark this month, as well as year to date. According to Wolfe Research, it’s starting to show signs of bullish momentum. “I think equal weight is where investors want to be for the coming months until we get a little digestion out of this technology sector,” Woods said. Small caps have also hit all-time highs, with the Russell 2000 rallying nearly 4% just this week. The small cap index is now the best performer, up almost 19% this year. Federal Reserve meeting The Federal Reserve meeting next week will also be consequential for markets, given that it’s the first helmed by Kevin Warsh . The central bank is expected to leave interest rates unchanged. But the Street will look for any changes to the statement that could remove any easing language, as the central bank appeared close to doing so at the April meeting when inflation started going higher. This week’s consumer prices data showed annual inflation climbing above 4% for the first time in three years. Higher inflation adds to conviction on the Street that Warsh will be unable to cut rates anytime soon, as he’s championed prior to succeeding the chairmanship. In that regard, President Donald Trump appeared to give the Fed chair a reprieve this week, when he said that he loves inflation . Odds of a rate cut coming this year are virtually zero, according to the CME FedWatch Tool . The June 16-17 meeting also comes with the Summary of Economic Projections, which could further give traders clarity on the path forward for interest rates. Warsh’s approach to the Fed’s communication will also be carefully monitored. The Fed chair has said that he’s against press conferences every meeting, which could mean these events are cut down to just four times a year, as it was prior to Jerome Powell ‘s tenure. Week ahead calendar All times ET. Monday, June 15 8:30 a.m. Empire State Index (June) 9:15 a.m. Capacity Utilization (May) 9:15 a.m. Industrial Production (May) 10:00 a.m. NAHB Housing Market Index (June) Tuesday, June 16 8:15 a.m. ADP Weekly Employment Change (05/30) 8:30 a.m. Export Price Index (May) 8:30 a.m. Housing Starts (May) 8:30 a.m. Import Price Index (May) Wednesday, June 17 8:30 a.m. Retail Sales (May) 10:00 a.m. Business Inventories (April) 10:00 a.m. Pending Home Sales (May) 2:00 p.m. FOMC Meeting with Economic Projections 2:00 p.m. Fed Funds Target Upper Bound Earnings: Jabil Thursday, June 18 8:30 a.m. Initial claims (06/13) 8:30 a.m. Philadelphia Fed Index (June) 10:00 a.m. Leading Indicators (May) Earnings: Accenture , Kroger Friday, June 19 Markets closed for Juneteenth
