Wall Street contributed to a stock market rebound as oil prices fell after US President Donald Trump indicated that the United States was close to reaching an agreement with Iran, fueling hopes for an end to the war that has shaken global markets.
Stock markets halted a two-day decline, with the S&P 500 index rising 1.8%. In recent hours, the price of US oil fell to around $86, alleviating concerns about inflationary pressures and pushing bond yields lower. The rise in the chip manufacturing index by approximately 8% also contributed to enhancing optimism. SpaceX raised $75 billion, marking the largest IPO in history.
The chief investment office at UBS indicated that although the path to a solution is likely to be uneven, our basic scenario is that diplomacy will ultimately prevail, allowing investors to refocus on resilient economic fundamentals and strong earnings growth in both the United States and Europe.
Meanwhile, SpaceX raised $75 billion through its initial public offering, with 555.6 million shares priced at $135 per share. Based on the IPO price, the company’s market capitalization was $1.77 trillion. Factoring in employee stock options and restricted stock units, the company’s market value after full dilution is about $1.8 trillion.
The statement indicated that Space Exploration Technologies, as it is officially known, has granted the underwriting banks an option to purchase an additional 83.3 million shares at the subscription price, which will raise the size of the deal to about $86 billion if this option is fully exercised. The IPO saw demand exceeding four times the available shares, according to Bloomberg.
Veteran strategist Louis Navellier said: “The IPO boom is great for boosting investor confidence, and will contribute to supporting the stock market as a whole. There is no doubt that we are still in the midst of a market dominated by fear of missing out, so this investment rush is expected to continue.”
