Funding Cut and SpaceX IPO Talk Pressure Rocket Lab Shares
Rocket Lab shares fell 1.9% after Congress withheld funding for its planned 2031 Mars sample-return mission and investors rotated into potential SpaceX IPO trades. Technical indicators show shares trading 11.1% below the 20-day SMA and 4.1% above the 50-day SMA, with RSI at 48.4 and bearish MACD.
1. Congress Withholds Funding for 2031 Mars Mission
A congressional decision to withhold funding for Rocket Lab’s planned 2031 Mars sample-return mission has introduced a key overhang on the stock, prompting investors to reassess the company’s long-term growth prospects in planetary exploration.
2. SpaceX IPO Rotation Applies Selloff Pressure
Renewed market chatter around a potential SpaceX IPO valued above $1.5 trillion has led traders to take profits from 2025’s rally in publicly traded space companies, contributing to double-digit pullbacks and adding downward pressure on Rocket Lab shares.
3. Mixed Technical Indicators and Price Levels
Rocket Lab is trading 11.1% below its 20-day SMA but 4.1% above its 50-day SMA, with an RSI at 48.38 signaling neutral momentum and a MACD below its signal line indicating bearish pressure. Shares have climbed 143.15% over the past 12 months, sit near a key resistance at $80.00, key support at $67.00, and were down 1.82% at $74.52.