S&P refuses to loosen principles for SpaceX: The largest IPO in history still has to wait a year before qualifying for the S&P 500

The S&P Dow Jones Industrial Average clearly refused to shorten the 12-month observation period on Thursday, meaning SpaceX must wait at least one year after going public before qualifying for inclusion in the S&P 500. In contrast, the Nasdaq has revised its rules to allow SpaceX to be listed for just 15 trading days before being included in the Nasdaq 100.
(Background: Ark Invest: SpaceX alone, with Starlink, is enough to support a $2 trillion valuation, with an estimated value reaching $2.5 trillion by 2030)
(Additional background: Buy a house without selling crypto! Coinbase teams up with Better to launch the first Bitcoin-backed mortgage in the U.S., expected to be fully rolled out this summer)

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• Nasdaq and FTSE relax rules, S&P stands apart
• Strategist: Consistent rules uphold credibility
• Demonstration case in the unicorn IPO wave

SpaceX, with a valuation of $1.75 trillion and a target fundraising of $75 billion, initially hoped that its massive size would allow it to directly enter the world’s most iconic indices. However, just before going public, it faced a setback. The S&P Dow Jones Indices explicitly rejected the early inclusion request for this space giant on Thursday, telling the market: “No matter how big, you can’t skip the line.”

This standoff is set against the backdrop of SpaceX planning to go public on Nasdaq in June 2026 under the ticker SPCX, with an estimated valuation between $1.5 trillion and $2 trillion. Whether the new stock can be included in major indices directly impacts the massive passive fund flows behind them, and the three major index providers have taken different stances this time.

Nasdaq and FTSE relax rules, S&P stands apart

To accommodate this super stock, some index providers have chosen to loosen their thresholds.

Under Nasdaq’s new rules effective May 1, 2026, the waiting period for large IPOs has been compressed to just 15 trading days; FTSE Russell has also given the green light, whereas previously SpaceX would have had to wait until the September 2026 quarterly review, now only 5 trading days are needed to be included.

Only S&P remains unmoved. SpaceX had hoped S&P would cut the usual 12-month observation period in half to 6 months, but was outright rejected. S&P’s reasoning is straightforward, summarized in one sentence: “Size is not a free pass to skip financial scrutiny.” In other words, this organization does not intend to give a company a pass on financial viability, actual listing time, or investment weight factors (IWF) just because its market cap is large.

It’s worth noting that S&P recently eliminated the minimum free float requirement for index inclusion, which should theoretically benefit companies like SpaceX with highly concentrated ownership. But even with relaxed rules, S&P remains strict on profitability: to join this club, a company still needs to deliver four consecutive quarters of GAAP-based positive net income.

Strategist: Consistent rules uphold credibility

Market reactions to S&P’s tough stance have mostly been positive. B. Riley Wealth Chief Market Strategist Art Hogan believes that S&P’s adherence to rules and prioritization of profitability for entry are its strengths; in his view, demanding special treatment solely based on size is unreasonable. If the index providers start making exceptions for a single company, it could undermine the credibility of the entire standard.

For SpaceX, being kept out of the S&P 500 means missing out on a portion of passive buying that automatically flows into the index during initial listing. However, the impact may not be fatal. The Nasdaq and FTSE Russell channels are already open, and related index funds will continue to build positions in the weeks following the listing. The difference is only in the pace of capital deployment, not the channel being blocked.

Demonstration case in the unicorn IPO wave

Whether this scale can be exchanged for privileges may be the real takeaway. The number of U.S. stocks listing has been shrinking in recent years, yet the number of high-profile IPO candidates waiting in line continues to grow. Unicorns valued at hundreds of billions of dollars, such as Anthropic and OpenAI, are on the list. When these giant IPOs also seek inclusion in major indices in the future, the rules S&P has set for SpaceX now serve as a clear red line that won’t be moved by market cap alone.