$SPCX It rose over 5% during the day today, hitting $160. Since its listing on June 12, this stock has been the market's focus. A few reasons are compounding:

Index inclusion, passive funds rushing in

This is the core driver behind today's surge. SpaceX was officially added to the Russell 1000 and Russell 3000 indices today, and it will enter the Nasdaq 100 on July 7. Funds tracking the Russell indices may need to buy nearly $3B worth of SpaceX stock; JPMorgan expects the Nasdaq 100 inclusion to bring in about $4.3B in passive fund inflows. Entering the Nasdaq 100 just 15 trading days after listing is the fastest on record. Nearly 200 ETFs already hold SpaceX, with some space and AI themed ETFs holding over 20% weight individually.

AI narrative, $60 billion acquisition of Cursor

Just days after listing, Musk acquired AI code startup Cursor using stock valued at $60 billion. This is the clearest signal of SpaceX's transformation from a "rocket company" to "AI + space." The market values this decisiveness.

Scarce float, supply-demand imbalance amplifying gains

Only about 4.2% of shares were tradable on the first day of listing. The IPO raised $85.7 billion, a record. With an extremely small float meeting massive passive buying, prices naturally get pushed up.

Passive index buying + AI narrative + scarce float—three forces overlap. Short-term buying is indeed strong, but too little float means high volatility. It dropped from $225 to $149 in less than two weeks, and now it's back to $160.

How long this wave of passive buying from index inclusion will last—only time will tell after the formal inclusion on July 7.