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SpaceX to join Nasdaq-100
SpaceX has become one of the fastest additions to the Nasdaq-100 index, triggering a new wave of buying from passive investors less than a month after its public debut. Nasdaq announced after Friday's close that SpaceX qualifies for inclusion in the benchmark technology index. Assuming the company meets requirements, index-tracking funds and other product sponsors will begin purchasing shares after the market closes on July 6, with SpaceX officially joining the Nasdaq-100 before trading begins on July 7. More than $800 billion tracks the index, including the Invesco QQQ Trust (QQQ), a widely traded security seen as a barometer for the artificial intelligence bull market. The aerospace and satellite company is expected to enter the index with a weighting of less than 1%. SpaceX’s rapid inclusion makes the Elon Musk company one of the first beneficiaries of Nasdaq’s recently adopted fast-track framework for newly public companies. The changes allow large IPOs to become eligible for the Nasdaq-100 after just 15 trading days, dramatically shortening the historically far longer waiting period. Under the previous framework, investors tracking the Nasdaq-100 could wait months before gaining exposure to newly listed market giants. The inclusion could create additional demand for SpaceX, which has been heavily traded since its June 12 debut. Index funds and ETFs tied to the Nasdaq-100 will need to buy shares to match the benchmark’s new composition, while active managers may also adjust positions. Because SpaceX’s publicly tradable float remains small relative to its total market capitalization, even a modest index weighting could require meaningful purchases from passive investment vehicles. Earlier this month, S&P Dow Jones Indices declined to create a similar fast-track process for the S&P 500, leaving SpaceX ineligible for that index due to separate profitability and seasoning requirements.