SpaceX enters Nasdaq 100, setting up $4.3 billion in fund buying
What's new: Wall Street banks began coverage as the quiet period ended, while options traders stayed heavily tilted toward calls.
SpaceX joined the Nasdaq 100 on Tuesday, a move expected to force index funds and other benchmark-tracking investors to buy billions of dollars of the newly listed stock. JPMorgan has estimated the inclusion could bring about $4.3 billion in passive inflows, with SpaceX taking roughly a 1% weight in the index behind Invesco's QQQ fund. The company was added just 15 days after its June 12 market debut, making it one of the fastest entries into the benchmark. As the underwriting quiet period expired, Morgan Stanley, Goldman Sachs, RBC, Bernstein and Stifel initiated coverage with bullish ratings. Options activity also remained strong ahead of the inclusion, with calls far outnumbering puts even as the stock traded with unusually high implied volatility.