SpaceX closed up 19% at $161, becoming the sixth-largest US stock. Behind the IPO, traders sold other names for cash. Intel jumped 25% on a BofA upgrade. The Fed meets with a new chairman.
SpaceX closed its first trading day up 19% at $161, giving it a market value above $2.1 trillion. The stock opened at $150, above the $135 offer price, and briefly hit $176. The IPO raised $75 billion and pushed Elon Musk's net worth past $1 trillion.
The successful debut ended a week of anxiety that the listing would drain liquidity from other stocks. Jim Cramer, the CNBC host who runs the Investing Club, said early demand looked promising. "We're over the hump," he said Friday.
The S&P 500 rose 0.5% on Friday and ended the week up about 0.7%. The Nasdaq added 0.3% Friday and 0.7% for the week.
In the run-up to the IPO, Cramer warned that mega offerings can pull money out of existing positions as investors raise cash to buy the new stock. The Club trimmed several holdings: Goldman Sachs and Unity on Monday, Arm on Tuesday, Eaton and Cardinal Health on Wednesday. Cash reached 12% of the portfolio, higher than usual.
Two more large IPOs are coming: OpenAI filed paperwork Monday, and Anthropic filed earlier this month.
Corning said Amazon will spend billions on its optical fiber for data centers over the coming years. Optical fiber moves data faster and uses less power than copper, a limit on computing growth. Corning has similar deals with Nvidia and Meta.
Oracle reported earnings and said it would raise another $20 billion for AI infrastructure. The funding overshadowed its results; shares fell 9% on Thursday.
Intel was the Club's top performer for the week, up more than 25%. Bank of America upgraded the stock to buy from sell on Thursday. Arm Holdings, the Club's No. 2, rose 11%. Nvidia (Alpha Score 66, Moderate) was flat. Broadcom slipped less than 1%. Apple lost more than 5% after announcing a new AI-powered Siri that uses Google's Gemini. Apple had been near record highs ahead of the event.
The consumer price index for May rose 4.2% from a year ago, the fastest in three years. Cramer said the increase mostly reflected higher oil prices tied to the Iran war. "When you get this war over in two or three days, then I think you'll look pretty good," he said.
Traders expect the Federal Reserve to hold its benchmark rate steady at the June 17 meeting. It will be the first decision under Chairman Kevin Warsh, whom President Trump nominated in January. The market debate has shifted from rate cuts to possible rate hikes.
The Fed's statement and Warsh's comments will set the tone for the next phase of this market.
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