Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Fed Rate Hike Slams US Stocks as Three Major Indexes Plunge: Why SpaceX Stock Surged Over 5% Against the Trend

Source Tradingkey

TradingKey - Hawkish Fed Decision Triggers Bloodbath as Three Major Indexes Plunge; What Drove SpaceX to Surge Over 5% Against the Trend?

On September 16, Eastern Time, the Federal Reserve (Fed) announced its latest interest rate decision, raising the benchmark interest rate by 25 basis points to 3.75%–4.00%, resuming rate hikes for the first time in nearly three years. Following the announcement, rate-sensitive tech stocks and the three major U.S. stock indexes fell sharply, but SpaceX (SPCX) stock defied the trend, surging 5.15% to close at $150.88.

The most direct driver behind SpaceX's independent rally is the company's official announcement that the 14th test flight of Starship (Starship 14) is scheduled for September 22. It is reported that while previous tests were mostly suborbital flights, this mission is planned to orbit the Earth six times. If successfully completed, it will provide crucial validation for Starship's long-term commercialization and cost reduction. In addition, this flight will deploy 26 Starlink V3 satellites for the first time, directly injecting a total transmission capacity of 26 Tbps into the Starlink network, significantly boosting internet speeds for enterprise users and generating commercial revenue on its initial run.

Another important catalyst was the U.S. Department of Defense's confirmation on the same day of breakthroughs in space weapons and military orbital systems, directly igniting the defense and aerospace sectors. Among these, SpaceX has cumulatively won over $8 billion in orders related to the U.S. military's "Golden Dome" missile defense and space interception program, while its classified Starshield military network has signed contracts worth over $6 billion with the Pentagon, solidifying its irreplaceable strategic position in national defense.

Additionally, SpaceX's weighting in the Nasdaq-100 Index will be significantly increased from 1.28% to 2.25%–2.82% during the index rebalancing on September 21. This means global ETFs and passive funds tracking indexes like QQQ will be forced to buy billions of dollars worth of SPCX stock in the coming days, attracting substantial speculative capital and short-term buyers positioning ahead of time.

Currently, SpaceX's stock price has once again broken through the $150 threshold, which was its opening price on its debut trading day and serves as a core psychological battleground for bulls and bears. Catalyzed by these positive factors, SpaceX's stock price is expected to continue trending higher with volatility. However, if next week's Starship 14 flight fails, SpaceX's stock price could pull back below $150 again.

spacex-spcx-price-87968d80c4ab49ba9963d32287cd7fae SpaceX stock price chart, Source: TradingView

Source

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500 A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

Author Suzie

Sep 14, Mon

A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve begins The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.

Author Irene Q.

Sep 15, Tue

The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.

Silver breaks $64 as precious metals rebound — can gold hold the $4,280 line into the Fed decision?Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.

Author Suzie

20 hours ago

Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.

Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for crypto The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Author Suzie

20 hours ago

The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks in The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Author Irene Q.

2 hours ago

The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Popular Symbols