Forget SpaceX's Nasdaq-100 Inclusion: This Is a Much Bigger Catalyst for Shares on July 7

Although net play is close astir the corner, each eyes are connected Elon Musk's Space Exploration Technologies (SpaceX) (NASDAQ: SPCX) this week -- and with bully reason.

A small implicit 3 weeks ago, SpaceX rewrote Wall Street's grounds books by raising $85.7 cardinal with its archetypal nationalist offering (IPO), including the underwriters' option. Tomorrow, July 7, it'll erstwhile again change past by joining 1 of Wall Street's astir prestigious indexes, the Nasdaq-100. But what if I told you that SpaceX's introduction into the Nasdaq-100 isn't tomorrow's biggest catalyst for the stock?

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SpaceX volition participate the Nasdaq-100 connected July 7

In a presumed effort to pull Musk's institution to database its shares connected the Nasdaq (NASDAQ: NDAQ) banal exchange, Nasdaq Global Indexes amended respective rules concerning Nasdaq-100 inclusion. These updated criteria, effectual arsenic of May 1, removed the low-float request and importantly shortened the timeline to Nasdaq-100 inclusion from astir 3 months to lone 15 trading days. Today, July 6, marks SpaceX's 15th trading league arsenic a nationalist company.

Nasdaq Global Indexes wasn't the lone committee that made changes up of SpaceX's debut. The U.S. Russell Indexes besides reduced the hold play for large-cap inclusion successful the Russell 1000 and Russell 3000 to conscionable 5 trading days, down from erstwhile per quarter.

What makes these adjustments truthful impactful is that accelerated introduction inclusion volition unit scale funds tracking the Nasdaq-100 (as good arsenic Russell 1000 and Russell 3000) to acquisition shares of SpaceX. This represents tens of billions of dollars successful passive buying that whitethorn supply a coagulated assistance to SpaceX's shares.

But portion SpaceX's summation to the Nasdaq-100 has been well-telegraphed, tomorrow's premier catalyst has flown wholly nether the radar.

Most of Wall Street tin present legally chime successful connected SpaceX

If there's 1 happening you tin ever number connected from Wall Street's starring concern banks and fiscal institutions, it's their willingness to measurement successful connected the banal market's largest companies. However, you whitethorn person noticed that chatter astir SpaceX has been comparatively quiescent -- and there's a ineligible crushed why.

When SpaceX went public, it had 21 abstracted underwriters. For context, you tin number the fig of underwriters for astir IPOs connected 1 hand. SpaceX's pb underwriter was Goldman Sachs, with astir of the remaining 20 functioning arsenic participating underwriters.