JPMorgan estimates $4.3 billion in passive fund inflows; S&P 500 inclusion still a year away
SpaceX, the space and AI company led by Elon Musk, will join the Nasdaq 100 index on July 7.
Nasdaq announced Friday, in a regulatory filing, that SpaceX would be added to the tech-heavy Nasdaq 100 beginning July 7.
The Nasdaq 100 tracks the 100 largest non-financial companies listed on the Nasdaq exchange by market capitalization. It includes major US technology firms such as Nvidia, Apple and Amazon.
Index inclusion is generally a positive catalyst for newly added stocks, as exchange-traded funds and index funds tracking the benchmark must buy shares of any new constituent at scale.
JPMorgan estimated that SpaceX's addition to the Nasdaq 100 would draw approximately $4.3 billion (about 6.6 trillion won) in passive fund inflows.
SpaceX listed on the Nasdaq on June 12. Its inclusion in the Nasdaq 100 less than a month after its debut is highly unusual.
Nasdaq has a "fast-track" rule that allows exceptionally large companies to join the Nasdaq 100 ahead of the standard schedule.
SpaceX has posted mixed financial results over the past three years, swinging between significant losses and modest profits.
The company recorded a net loss of $4.9 billion (about 7.5 trillion won) last year, but relaxed inclusion criteria allowed it to qualify for the Nasdaq 100 ahead of schedule.
S&P Global, which manages the S&P 500 and other major indexes, said it would not change its inclusion criteria. SpaceX will not be eligible for S&P 500 consideration for another 12 months.
notstrong@heraldcorp.com
