The post-listing collapse of SpaceX (Nasdaq:SPCX) continued, as it shedded more than $600 billion in market value and falling over 30% from its IPO peak, is pulling the wider technology sector lower and testing investor conviction in AI-driven valuations.
The Nasdaq 100 has slipped a further 2.5% and the Kospi dropped 10%, though South Korean memory names SK Hynix and Samsung staged a partial bounce, with the Kospi recovering 3% to trim losses.
Analysts are divided on what the move signals. "SpaceX shedding more than $600 billion in value and over 30% from its post-IPO peak marks one of the most dramatic reversals ever seen in a newly listed mega-cap stock, dragging the whole technology sector down with it," said Axel Rudolph at IG.
Neil Wilson at Saxo Markets characterised the broader sell-off as "more technical repositioning than a fundamental questioning of the AI bubble," while flagging emerging doubts about the sustainability of frontier AI spending.
Dan Coatsworth at AJ Bell offered a more sanguine read, suggesting the US tech move looks like profit-taking after a strong run for memory chip suppliers rather than systemic contagion, noting spillover into global markets.
The FTSE 100, less exposed to technology, held near flat at 10,427 as non-tech sectors absorbed rotation flows.
Separately, Bloomberg reported SpaceX sold $25 billion of investment-grade bonds, replacing costlier debt tied to Elon Musk's 2022 acquisition of X and xAI's earlier funding.
