SpaceX stock dips below $150 debut before rebounding

Key Points:

• SpaceX (SPCX) stock rebounded slightly on Tuesday after initially dipping below its market offering price of $150, closing up less than 1% despite midday gains of around 6%.
• The stock's decline has pressured market makers and major institutional investors to defend its value, with shares nearing the IPO price of $135, threatening to push the company's market cap below $2 trillion.
• SpaceX's recent stock stumble has negatively impacted other space sector stocks, which have dropped an average of 17% since SpaceX priced its shares at $135 on June 11.
• The upcoming end of lock-up periods is adding downward pressure, with significant insider share unlocks scheduled after the earnings announcement in August and additional unlocks in late August and September.
• SpaceX's stock volatility follows its rapid rise to a peak of around $225 per share last week, briefly making it the fourth-most-valuable public company ahead of Amazon and Microsoft.