Space stocks fell Friday after S&P Global ruled out changes to its index eligibility rules, dashing investor hopes that Elon Musk’s SpaceX could quickly join the S&P 500 following its upcoming blockbuster IPO and trigger billions of dollars in passive fund inflows.
Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS), Rocket Lab Corp. (NASDAQ:RKLB), and Redwire Corporation (NYSE:RDW) moved lower, while Sidus Space, Inc. (NASDAQ:SIDU) also declined.
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The weakness extended to space-focused funds, with the ARK Space Exploration & Innovation ETF (BATS:ARKX) and the Procure Space ETF (NASDAQ:UFO) trading lower on Friday as sentiment across the sector deteriorated.
S&P Decision Removes Potential SpaceX Catalyst
