U.S. stocks closed down across the board, and Space X’s market value evaporated by more than a trillion U.S. dollars from its peak
On July 17, local time, the three major U.S. stock indexes closed down across the board. Most large technology stocks fell, with Nvidia, Meta, Tesla and Google all falling by more than 2%. The Philadelphia Semiconductor Index fell 1.63%, down 20.2% from the all-time high hit on June 22, entering a technical bear market. Storage concept stocks opened lower and closed higher. Seagate Technology rose by more than 5%, Western Digital rose by more than 2%, SK Hynix rose by more than 1%, and SanDisk fell by nearly 4%.
On July 17, local time, the three major U.S. stock indexes closed down across the board. Most large technology stocks fell, with Nvidia, Meta, Tesla and Google all falling by more than 2%. The Philadelphia Semiconductor Index fell 1.63%, down 20.2% from the all-time high hit on June 22, entering a technical bear market. Storage concept stocks opened lower and closed higher. Seagate Technology rose by more than 5%, Western Digital rose by more than 2%, SK Hynix rose by more than 1%, and SanDisk fell by nearly 4%. SpaceX fell more than 5%, and its stock price has experienced six consecutive negative days. Its market value has evaporated by more than 1 trillion US dollars from its historical high. The suspension of the "Starship" rocket launch has worsened the already pressured stock price, and investors' reflection on its high valuation continues to deepen. All three major U.S. stock indexes closed lower On July 17, local time, the three major U.S. stock indexes closed down across the board. Wind data showed that as of the close, the Dow fell 0.77% to 52,146.42 points, the S&P 500 fell 1.01% to 7,457.69 points, and the Nasdaq fell 1.40% to 25,520.24 points. Most large-cap technology stocks in the U.S. fell, with the Wind Seven U.S. Technology Index falling 1.59%. In terms of individual stocks, Nvidia, Meta, Tesla, and Google all fell by more than 2%, while Apple rose by 0.14%. Chip stocks generally fell. The Philadelphia Semiconductor Index fell by 1.63%, Applied Materials fell by more than 5%, Ketian Semiconductor fell by more than 3%, TSMC fell by nearly 3%, and ASML fell by more than 2%. In terms of Chinese concept stocks, the Nasdaq China Golden Dragon Index fell 1.81%, and the Wind China Concept Technology Leading Index fell 2.65%. Among them, Kingsoft Cloud fell by more than 5%, and Baidu Group fell by nearly 5%. In terms of commodities, Wind data showed that on July 17, local time, WTI crude oil futures closed up 4.46% at US$81.77/barrel; the main ICE Brent oil contract rose by 4.78% at US$88.26/barrel. As the conflict between the United States and Iran escalates, the United States has launched air strikes on Iran for many days. Iran has expanded the scope of its attacks to U.S. military and allied facilities across the Middle East. The security of the Strait of Hormuz, the world's core oil shipping channel, has been worried by the market. Intercontinental Exchange data shows that the net long position of Brent crude oil held by speculators increased significantly during the current period, hitting a five-week high. The market's long preference for speculative funds increased significantly, and capital inflows supported the rise in oil prices. According to Xinhua News Agency, the U.S. Central Command posted on social media on the 17th that the U.S. military launched a new round of strikes against Iran at 15:00 ET that day. This was the seventh consecutive night of such actions, aiming to "continue to weaken Iran's military capabilities." SpaceX drops more than 5% SpaceX stock price weakens again. As of the close, SpaceX fell 5.43% to US$123.99, with a total market value of US$1.62 trillion. It has shrunk by more than US$1 trillion from its peak market value and fell below the issue price of US$135. The Starship rocket aborted its mission before launch on Thursday due to engine failure, local time, which became the direct trigger for the stock price drop. According to CCTV News, on July 16, local time, SpaceX’s 13th test flight of the “Starship” originally planned for that day was automatically suspended during the ignition stage because some engines failed to start. This was originally going to be SpaceX's first launch mission after it went public in June this year. SpaceX said it is currently investigating the cause of the failure. Company founder Musk said through social platforms that part of the engine did not start, triggering the automatic abort procedure, and the propellant was being unloaded, and the next launch attempt was "hoped to be made in a few days." This mission was originally scheduled to be launched from the "Starship Base" in Cameron County, Texas. It was the 13th test flight of the "Starship" project and the second flight of the third-generation "Starship" spacecraft and "Super Heavy" booster. The mission plan is still a suborbital flight and attempts to re-ignite the engine in space while deploying 20 new-generation "Starlink" satellites. SpaceX hopes to rely on "Starship" to expand the "Starlink" network, build a space data center, and prepare for future manned landings on Mars. In the previous 12th test flight, the rocket's first-stage "Super Heavy" booster failed to complete the return braking burn and subsequently crashed into the Gulf of Mexico in an uncontrolled state.
As the creator of the world's largest IPO record, the company is facing continued pressure to reconstruct its valuation. Joe Gilbert, portfolio manager of Integrity Asset Management, said that the timing of this launch failure disrupted its market growth narrative, but launch failure has always been an inherent risk that cannot be eliminated in the path of aerospace commercialization. At present, investors have begun to actively reduce their position exposures and re-evaluate the company's value, and market optimism continues to cool down. To make matters worse, the potential selling pressure brought about by the expiration of the lock-up period for insiders' shares is further suppressing the stock price performance. SpaceX has set up an extended lock-up period mechanism for internal shareholdings, and the relevant shares will flow into the secondary market in batches in the next few months. Mark Malek, chief investment officer of Siebert Financial, analyzed that if the subsequent wave of batch expiration of the ban is included in the valuation consideration framework, many investors will most likely have begun to revise their initial investment pricing logic; while the potential funds that were previously on the sidelines are waiting for an entry window with a safer margin - as valuations gradually fall back to a reasonable range, such layout opportunities will most likely gradually emerge. (
As the creator of the world's largest IPO record, the company is facing continued pressure to reconstruct its valuation. Joe Gilbert, portfolio manager of Integrity Asset Management, said that the timing of this launch failure disrupted its market growth narrative, but launch failure has always been an inherent risk that cannot be eliminated in the path of aerospace commercialization. At present, investors have begun to actively reduce their position exposures and re-evaluate the company's value, and market optimism continues to cool down. To make matters worse, the potential selling pressure brought about by the expiration of the lock-up period for insiders' shares is further suppressing the stock price performance. SpaceX has set up an extended lock-up period mechanism for internal shareholdings, and the relevant shares will flow into the secondary market in batches in the next few months. Mark Malek, chief investment officer of Siebert Financial, analyzed that if the subsequent wave of batch expiration of the ban is included in the valuation consideration framework, many investors will most likely have begun to revise their initial investment pricing logic; while the potential funds that were previously on the sidelines are waiting for an entry window with a safer margin - as valuations gradually fall back to a reasonable range, such layout opportunities will most likely gradually emerge. (