SPCX Just Became the Whole Market
For weeks the market obsessed over the Iran war: oil stuck in the Strait of Hormuz, inflation fears, and which way the Fed would jump. That war is now over, and the focus has snapped to something domestic and structural, the SPCX NASDAQ 100 inclusion.
Index rules just changed so SpaceX (ticker SPCX) can enter the Russell Index only 5 days after its IPO and join the NASDAQ 100 by the end of June. Because index funds must buy what the index holds, that forced buying lifts SPCX and drags every major benchmark up with it. On the heat map it was the single sharpest mover in the entire market.
The second layer is timing. The report says this week is “totally governed by SPCX and the Federal Reserve.” Add the Bank of Japan’s surprise hike to a 31-year high (1.00%), which can spark hedge-fund bets on the US-Japan rate gap, and the Fed suddenly has one more thing to weigh before its own decisions.
The tension underneath: this is narrative, not earnings. Nobel economist Paul Krugman called SPCX’s valuation a “real-life Ponzi scheme,” and the old substitutes are crumbling, with DXYZ, ARKX, and RKLB all falling even as SPCX rockets higher.
When one stock is lifting every index, the index stops telling you the truth. Watch whether the rest of the market can stand on its own once the forced buying ends.
Full report available via the download button below. Read previous US Stock Express editions here.
US Stock Express 20260617 Gold Japan Dollar Index SPCX DXYZ RKLB
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.