SpaceX Joins Major Index as Tech Funds Pull $20 Billion in Outflows
SPCX•U.S. equity funds saw net outflows of $3.53 billion in the week to June 24, with technology-sector funds posting $20 billion in withdrawals as SpaceX tapped bond markets. SpaceX is set to join a major U.S. stock index next month even as its shares declined this week.
1. Weekly Outflows Hit U.S. Equity Funds
U.S. equity funds experienced net redemptions totaling $3.53 billion in the week to June 24, reversing the prior week’s $37.63 billion inflows. Technology-sector funds recorded nearly $20 billion in outflows as concerns over debt-funded spending by major tech companies and expectations of a possible Fed rate hike weighed on sentiment.
2. SpaceX Index Inclusion and Market Response
SpaceX is slated for inclusion in a major U.S. stock index next month, a development likely to boost institutional ownership. Despite this, the company’s shares have declined in recent sessions as investors remain cautious about stretched tech valuations and its recent bond-market borrowing.
