Market Analysis Summary - US Equities and SpaceX IPO

Author: Tony Sycamore, Market Analyst

Publication Date: Sunday, 31 May 2026

US Equities Rally to Record Highs

US equity markets have extended their winning streak, closing at record highs as optimism surrounding a potential ceasefire extension between the US and Iran boosts market sentiment. The tech-heavy Nasdaq 100 surged by 2.89% for the week and an impressive 10.49% for May, following a 15% increase in April. The S&P 500 and Dow Jones also posted significant gains, with the S&P 500 up 1.43% for the week and 5.15% for the month, while the Dow Jones added 452 points (+0.89%) for the week and 1384 points (+2.79%) for the month.

Geopolitical Developments

Despite the positive market sentiment, geopolitical tensions remain a concern. Reports indicate that President Trump is keen to finalize a deal with Iran but is pushing for stronger clauses regarding Iran's enriched uranium stockpile. Additionally, Israeli troops have advanced deeper into Lebanon, and concerning footage of naval mines in the Strait of Hormuz has surfaced, highlighting potential risks to crude oil supply even if a diplomatic agreement is reached.

SpaceX IPO Anticipation

Market attention is shifting towards the upcoming SpaceX IPO, set to launch on June 12. The IPO is expected to be a significant event, with a target market capitalization of at least $1.8 trillion, down from an earlier estimate of $2 trillion. SpaceX's business segments include:

• Connectivity (Starlink): The main cash engine, serving 10 million customers.
• Space (Launch Services): A cost-effective segment with a strong track record of delivering payloads to orbit.
• AI and Compute: This division holds significant potential for growth and innovation.

Traders can participate in the IPO through IG’s pre-IPO market, which is linked to SpaceX’s expected market capitalization.

Focus on Non-Farm Payrolls

Attention will also be on the upcoming non-farm payrolls report, with expectations of a gain of around 93,000 jobs for May and an unemployment rate holding steady at 4.3%. The US interest rates market is currently pricing in a potential Federal Reserve rate hike for December.

Technical Analysis

The Nasdaq 100 has rallied 33% since late March, but bearish relative strength index (RSI) divergence suggests that upward momentum may be fading. Caution is advised for traders considering entering the market at these levels. In contrast, the Dow Jones has shown no signs of bearish divergence, indicating potential for further gains, especially if it holds above the 50,000 psychological level.

Conclusion

While US equities are experiencing a strong rally, geopolitical tensions and upcoming economic data could influence market dynamics. The anticipation surrounding the SpaceX IPO adds another layer of interest for investors and traders alike.