SpaceX will be added to the tech-heavy Nasdaq 100 index on July 7, exchange operator Nasdaq confirmed on Friday, paving the way for a surge in passive investments in Elon Musk’s rocket and AI giant.

Impact on Investments

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. J.P. Morgan estimated that SpaceX’s inclusion in the Nasdaq 100 could draw $4.3 billion in passive inflows.

SpaceX, which made its Nasdaq debut on June 12, has swung between sharp losses and small profits over the past three years. Last year, the company reported a net loss of $4.9 billion.

Market Expectations

Large Language Model (LLM) makers OpenAI and Anthropic are also expected to file for their initial public offerings this year or next year and likely target valuations of more than $1 trillion. Investors buy mutual funds and ETFs, such as Invesco’s QQQ and QQQM, that track the Nasdaq 100, to get broader exposure.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.