Key Takeaways
- SpaceX (SPCX) launched the largest IPO in history, pricing at $135 per share to raise $75 billion and valuing the company at $1.77 trillion.
- U.S. and Iranian officials are nearing a "Memorandum of Understanding" to reopen the Strait of Hormuz and address nuclear concerns, with a potential signing at the G7 summit.
- U.S. forces shot down two Iranian attack drones targeting commercial vessels in the Strait of Hormuz late Thursday, even as diplomatic progress accelerates.
- A federal judge extended a block on the Trump administration’s $1.8 billion "Anti-Weaponization Fund," giving the government one week to provide a sworn statement that the fund will not proceed.
- Energy Secretary Chris Wright confirmed the U.S. has no plans to ban energy exports and suggested a summer gas tax holiday to combat high pump prices.
SpaceX Makes Historic Market Debut
SpaceX (SPCX) officially transitioned to the public markets on Friday, marking the largest initial public offering in global history. The aerospace giant, founded by Elon Musk, priced its shares at $135, surpassing the previous record held by Saudi Aramco. Early indications of interest on the NASDAQ showed the stock surging as high as $175, a 30% premium over the IPO price, driven by over $100 billion in retail and institutional orders.
The capital raise of $75 billion is intended to fund SpaceX’s ambitious Mars colonization efforts and the expansion of its Starlink satellite network. SpaceX President Gwynne Shotwell rang the opening bell at the Nasdaq MarketSite, declaring that the company is "making history again" as it integrates its recently acquired AI division, xAI, into its public portfolio. Analysts from Oppenheimer and New Street Research have already issued bullish targets, citing a projected $195 billion revenue by 2030.
Diplomatic Breakthroughs and Military Friction
Vice President JD Vance and Iranian Foreign Minister Seyed Abbas Araghchi both signaled on Friday that the "Islamabad Memorandum of Understanding" is nearing finalization. The deal aims to reopen the Strait of Hormuz—a critical artery for 20% of global oil supply—and establish a framework for ending Iran's nuclear weapons program. Vance clarified on social media that the deal does not involve immediate cash transfers to Tehran, emphasizing that economic benefits will only flow if Iran meets its specific obligations.
Despite the diplomatic optimism, the region remains volatile. A U.S. defense official confirmed that U.S. forces shot down two Iranian one-way attack drones targeting commercial ships in the Strait of Hormuz on Thursday night. While traffic flow continues, the incident highlights the fragile security environment as President Donald Trump prepares for a potential signing ceremony during the G7 summit in the French Alps next week.
Israeli Resistance to Withdrawal
Israeli Defense Minister Israel Katz stated on Friday that while Israel supports the U.S. goal of preventing a nuclear Iran, it will not withdraw from security zones in Lebanon, Syria, or Gaza. Katz emphasized that Israel must retain the independent capability to act against Iranian threats, regardless of any U.S.-led agreement. Prime Minister Benjamin Netanyahu echoed these sentiments, noting that while he and President Trump agree on the nuclear objective, Israel remains wary of any deal that does not fully dismantle Iran's missile infrastructure and proxy networks.
Legal and Energy Developments
In domestic news, U.S. District Judge Leonie Brinkema extended a court order blocking the Trump administration's $1.8 billion "Anti-Weaponization Fund." The judge has given the administration one week to provide a sworn declaration from Acting Attorney General Todd Blanche that the fund—originally intended to settle a lawsuit regarding the leak of Trump's tax returns—will be permanently scrapped. Critics have labeled the fund a "slush fund" for political allies, leading to significant bipartisan pushback in Congress.
On the energy front, Secretary Chris Wright sought to stabilize markets by confirming that the U.S. is not intending to ban energy exports. Wright expressed a desire for the Strategic Petroleum Reserve to be filled to capacity and floated the idea of a summer gas tax holiday to provide relief to American consumers. These comments come as national gas prices remain elevated due to the ongoing Middle East conflict and the continued closure of key shipping lanes.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.