SpaceX (SPCX.US) will be included in the Nasdaq 100 on July 7, expecting $4.3 billion in passive fund inflows.

The exchange operator Nasdaq confirmed on Friday that Elon Musk's rocket and AI giant SpaceX (SPCX.US) will officially be included in the Nasdaq 100 index, which is mainly composed of tech stocks, on July 7th. This move will bring about a wave of passive investment inflows to the stock. Typically, being included in an index will boost stock prices, as exchange-traded funds (ETFs) that track the performance of the index will need to buy shares of the newly added stocks in order to replicate the index's movements. To enhance the attractiveness of U.S.-listed companies, Nasdaq, together with index providers like FTSE Russell and MSCI Inc. Class A, has previously relaxed the admission criteria for listed companies, covering factors such as profitability, number of trading days after listing, and amount of shares outstanding. SpaceX went public on Nasdaq on June 12th, with its performance over the past three years swinging significantly between massive losses and minimal profits. Last year, the company reported a net loss of 4.9 billion U.S. dollars. The developers of the large language model, OpenAI and Anthropic, are also expected to file for an initial public offering either this year or next year, with a target valuation potentially exceeding 1 trillion U.S. dollars. Investors can gain exposure to a wide range of tech stocks by purchasing mutual funds and ETFs that track the Nasdaq 100 index, such as those under the umbrella of JPMorgan, including QQQ and QQQM. J.P. Morgan estimates that SpaceX's inclusion in the Nasdaq 100 index will lead to approximately 4.3 billion U.S. dollars in net passive fund inflows. Michael Field, Chief Equity Market Strategist at Morningstar, said, "Clearly, there is significant market demand, which is why they accelerated the inclusion of SpaceX in the index. Many people will be pleased with this, but some fund managers may not be, especially the skeptics, of which we are included. We believe that the current valuation of the stock is somewhat high." S&P Global, Inc. stated this month that it will not adjust its eligibility criteria for SpaceX to enter its major indices, including the benchmark S&P 500 index, and will reevaluate at least 12 months later.