Stock Market Today, June 16: SpaceX Overtakes Amazon as Valuation Tops $2.8 Trillion
At midday, the S&P 500 (SNPINDEX:^GSPC) had slipped 0.14% to 7,543.64, and the Nasdaq Composite (NASDAQINDEX:^IXIC) had fallen 0.46% to 26,560.20 amid profit‑taking in high‑growth tech. The Dow Jones Industrial Average (DJINDICES:^DJI) rose 0.89% to 52,132.01 as cyclicals extended Monday’s rally.
Market movers
SpaceX jumped more than 10% as its post‑IPO surge and artificial intelligence (AI) deal vaulted its valuation. The firm, which is proposing to build AI infrastructure in space, reached a valuation of $2.8 trillion — overtaking Amazon. Robinhood Markets slipped after announcing a 10% cut to its workforce.
What this means for investors
Stocks faltered this morning as the Federal Reserve began its first meeting under Chair Kevin Warsh. Investors will watch tomorrow’s press conference for clues on his plans to shake up the organization and, crucially, any future rate changes. Inflation is running hot, but falling energy prices reduce the pressure for immediate steps from the Fed.
There’s growing confidence that the U.S.-Iran peace deal will be signed and that the Strait of Hormuz will reopen soon. However, the timeline is unclear, and officials warn it could take months for oil shipments to gear up and even longer for production to fully normalize. The details of the deal are not yet public, adding to market caution.
The Dow continues to break new ground as investors rotate into industrials, financial services, and utilities. SpaceX’s continued rally shows there’s still appetite for speculative investments, but investors may be selling other megacap tech stocks to make space for the record-breaking stock.
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Emma Newbery has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
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