SpaceX to Join Nasdaq 100 on July 7, Expected to Attract Passive Fund Buying

Inclusion in the index typically boosts the stock price, as exchange-traded funds looking to replicate the index's performance buy ‌shares of the newly included firm

SpaceX is set to be included in the Nasdaq 100 index on July 7, according to a report by Reuters. According to the report, exchange operator Nasdaq has confirmed the inclusion. The addition is expected to significantly boost demand for the stock as passive investment funds that track the index will be required to purchase shares of the company.Index inclusion typically leads to upward pressure on a stock’s price because exchange-traded funds (ETFs) and mutual funds that replicate the Nasdaq 100 are mandated to adjust their portfolios to reflect new constituents. This automatic buying can result in substantial inflows for newly added companies.To attract more high-profile companies, Nasdaq, along with index providers FTSE Russell and MSCI, has eased certain listing and inclusion requirements in recent years. These changes include relaxed profitability criteria, shorter waiting periods after public listings, and adjustments to minimum free float requirements.SpaceX, which debuted on the Nasdaq in June, has experienced significant volatility over the past few years, swinging between losses and modest profits. Musk Loses $300 Billion In Net Worth As SpaceX Selloff Deepens The company reported a net loss of $4.9 billion last year, reflecting heavy investment in its space and AI-related operations.Market expectations are also building around other artificial intelligence firms such as OpenAI and Anthropic, which are reportedly preparing for IPOs either later this year or next year, with potential valuations exceeding $1 trillion.Investors typically gain exposure to Nasdaq 100 companies through ETFs such as Invesco’s QQQ and QQQM, which track the index and hold its largest technology and growth stocks.According to estimates from J.P. Morgan, SpaceX’s inclusion in the Nasdaq 100 could generate around $4.3 billion in passive inflows, driven by automatic fund rebalancing.S&P Global has maintained a cautious stance, stating that it is not adjusting its index eligibility rules for SpaceX. The company will not be considered for inclusion in major indices such as the S&P 500 for at least 12 months, keeping its broader index entry prospects uncertain.