SpaceX stock jumps as Citadel flags growing risks to AI rally

SpaceX stock has climbed nearly 4.5% to around $161 on Monday ahead of its expected Nasdaq-100 entry, even as Citadel Securities has warned that mounting risks could slow the AI-driven market rally.

According to market data, SpaceX (SPCX) shares were trading near $160 at the time of writing after gaining 4.4% during the session. The advance comes days before the company is expected to join the Nasdaq-100 Index on July 7, a move that investors believe could attract billions of dollars in passive fund inflows.

Nasdaq-100 inclusion has strengthened demand expectations

With the index addition approaching, investors have continued building positions in the stock. Passive funds and exchange-traded funds that track the Nasdaq-100 are expected to purchase SpaceX shares once the company joins the benchmark.

Market estimates suggest the inclusion could generate almost $4 billion in passive buying, increasing liquidity and institutional ownership. Alongside the Nasdaq-100 addition, SpaceX has already secured a place in the Russell 1000 Index, although it remains ineligible for the S&P 500 because the index requires newly qualified companies to wait 12 months before being considered.

Institutional investors have also continued adding exposure. Last week, Cathie Wood’s ARK Invest bought 45,728 SpaceX shares valued at about $7.01 million across its ARKK, ARK Autonomous Technology & Robotics ETF (ARKQ), ARKW, and ARK Space Exploration & Innovation ETF (ARKX).

Citadel has cautioned that AI stocks could face new pressure

Despite the strong momentum in SpaceX shares, a Bloomberg report citing Citadel Securities said investors may be underestimating how committed Federal Reserve officials remain to bringing inflation under control.

According to the report, interest rates staying higher for longer could weigh on high-growth companies and other risk-sensitive assets. The trading firm’s assessment has also added to concerns in cryptocurrency markets, where digital assets have remained under selling pressure over recent weeks.

Bloomberg also reported that Citadel Securities expects the AI-led rally to encounter additional challenges from softer demand, weaker investment returns, and rising political and regulatory scrutiny.

The report did not identify SpaceX as facing those issues directly, but investors are assessing whether a slowdown across AI-related companies could eventually influence sentiment toward the stock.

Separate concerns have also emerged around the company’s financing strategy. As reported by crypto.news earlier, Allianz Chief Investment Officer Ludovic Subran said SpaceX’s enlarged debt offering may indicate that financial markets are showing signs of bubble-like conditions. He argued companies are taking advantage of elevated equity valuations and favorable borrowing conditions to raise additional capital.

The comments followed earlier reports that SpaceX was preparing a larger bond sale, a development that has attracted attention even as investor demand for the company’s shares continues to strengthen ahead of next week’s Nasdaq-100 inclusion.