{"id":66008,"date":"2026-08-05T10:38:15","date_gmt":"2026-08-05T14:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-spacex-faces-100b-share-unlock\/66008\/"},"modified":"2026-08-05T10:38:15","modified_gmt":"2026-08-05T14:38:15","slug":"s-spacex-faces-100b-share-unlock","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-spacex-faces-100b-share-unlock\/66008\/","title":{"rendered":"S&#038;P 500 Hits Record Highs on Hormuz Optimism; SpaceX Faces $100B Share Unlock"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> and <a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> hit fresh record highs<\/strong> as US Treasury Secretary Scott Bessent signaled a deal to reopen the <strong>Strait of Hormuz<\/strong> could be reached within 48 hours.<\/li>\n<li><strong>SpaceX (<a href=\"\/stock\/SPCX\">SPCX<\/a>) faces a massive $106.4 billion share unlock<\/strong> tomorrow, August 6, following its first post-IPO earnings report which saw shares drop <strong>7%<\/strong> on high AI-related capital expenditures.<\/li>\n<li><strong>US Treasury removed sanctions<\/strong> from three IRGC-linked entities, providing a critical economic incentive for ongoing diplomatic talks with Iran to restore global shipping lanes.<\/li>\n<li><strong>ISM Services Index rose to 54.1<\/strong> in July, but a sharp jump in the <strong>Prices Paid Index to 70.3<\/strong> and a contraction in employment (47.4) raised concerns about &quot;stagflationary&quot; pressures.<\/li>\n<li><strong>Gulf crude exports held steady at 10.7 million bpd<\/strong> in July, remaining <strong>40% below pre-war levels<\/strong> as Houthi threats to Saudi Red Sea exports offset optimism from the potential Hormuz accord.<\/li>\n<\/ul>\n<h2>Markets Surge on Diplomatic Breakthrough Hopes<\/h2>\n<p>US equity markets extended their rally on Wednesday, with the S&amp;P 500 (<a href=\"\/stock\/SPX\">SPX<\/a>) and Dow Jones Industrial Average (<a href=\"\/stock\/DJI\">DJI<\/a>) scaling new all-time highs. Investor sentiment was primarily driven by comments from US Treasury Secretary <strong>Scott Bessent<\/strong>, who told CNBC that a deal to reopen the <strong>Strait of Hormuz<\/strong>\u2014a waterway that previously handled 20% of global oil\u2014could be finalized as early as Wednesday.<\/p>\n<p>The prospect of normalized shipping sent <strong>Brent crude<\/strong> prices tumbling below <strong>$79 a barrel<\/strong>, a decline of roughly <strong>5%<\/strong>. This retreat in energy costs led to a drop in the <strong>10-year Treasury yield<\/strong> to <strong>4.62%<\/strong>, as traders dialed back expectations for a Federal Reserve rate hike in September.<\/p>\n<h2>SpaceX Braces for Historic $100B Liquidity Event<\/h2>\n<p>SpaceX (<a href=\"\/stock\/SPCX\">SPCX<\/a>) is entering a volatile period as a lockup expiration tomorrow will make approximately <strong>911.5 million shares<\/strong>\u2014valued at over <strong>$100 billion<\/strong>\u2014eligible for trading. The unlock follows the company&#39;s inaugural post-IPO earnings report, where it posted better-than-expected revenue of <strong>$7.8 billion<\/strong> but alarmed investors with <strong>$18.37 billion<\/strong> in quarterly capital expenditure, much of it directed toward AI infrastructure.<\/p>\n<p>CEO <strong>Elon Musk<\/strong> remains optimistic, projecting a <strong>$100 billion<\/strong> annualized revenue run rate by year-end. However, the stock has already fallen roughly <strong>15%<\/strong> from its <strong>$135<\/strong> offering price, and the sudden increase in tradable float could exert further downward pressure if insiders choose to liquidate positions.<\/p>\n<h2>Services Sector Resilience Met with Inflationary Headwinds<\/h2>\n<p>The US services sector continued its 25-month expansion streak in July, with the <strong>ISM Services PMI<\/strong> reaching <strong>54.1<\/strong>. While business activity and new orders remained robust, the report highlighted a worrying divergence: the <strong>Prices Paid Index<\/strong> surged to <strong>70.3<\/strong>, its highest level since early 2023, while the <strong>Employment Index<\/strong> fell to <strong>47.4<\/strong>, indicating a contraction in hiring.<\/p>\n<p>Analysts noted that while consumer demand remains resilient, rising input costs\u2014partially driven by previous oil price spikes\u2014are beginning to squeeze corporate margins. Investors are now looking toward Friday\u2019s non-farm payrolls report for more definitive clues on the health of the labor market.<\/p>\n<h2>Geopolitical Shifts: Iran Sanctions and Brazil\u2019s 2026 Race<\/h2>\n<p>In a significant diplomatic move, the <strong>US Treasury Department<\/strong> removed counterterrorism sanctions from three entities linked to Iran&#39;s <strong>IRGC<\/strong>. This concession is viewed as part of a structured &quot;sequencing&quot; of deals intended to secure the reopening of the Strait of Hormuz. Meanwhile, US Secretary of State <strong>Marco Rubio<\/strong> is set to meet with UK Foreign Secretary <strong>Ed Miliband<\/strong> to discuss further aid for <strong>Ukraine<\/strong> and efforts to stabilize the Middle East.<\/p>\n<p>In South America, the 2026 Brazilian presidential race is taking shape as Senator <strong>Flavio Bolsonaro<\/strong>, son of former President Jair Bolsonaro, named Congressman <strong>Alfredo Gaspar<\/strong> as his running mate. The announcement positions the pair as the primary right-wing challengers to incumbent President <strong>Luiz Inacio Lula da Silva<\/strong> in the upcoming October vote.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways S&amp;P 500 and Dow Jones hit fresh record highs as US Treasury Secretary Scott Bessent signaled a deal 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