SpaceX IPO and Oil Price Plunge: Insights into the New York Stock Market Ahead of the Fed Meeting
On June 12 in New York (early June 13 in Korea), U.S. stock markets rose for the third straight session, fueled by falling oil prices and a blockbuster IPO. The S&P 500 climbed 0.5% to 7,431.46, the Dow Jones Industrial Average gained 0.7% to 51,202.26, and the Nasdaq added 0.3% to close at 25,888.84. Brent crude dropped 3.4% on hopes for a ceasefire in the Iran conflict, easing energy‐cost pressures and boosting demand for riskier assets.
All eyes were on SpaceX, which pulled off the largest IPO in history. Its shares jumped about 19% on debut, effectively making Elon Musk the world’s first “trillionaire,” and the space‐satellite‐AI narrative underpinned risk appetite across growth stocks. However, many established AI leaders saw mixed moves as investors took profits after recent gains, highlighting a more selective market within the sector.
That same day, the University of Michigan’s preliminary June Consumer Sentiment Index rose to 48.9 from May’s reading, but remained near historic lows. Lower gasoline prices helped lift spirits among lower‐income households, yet one‐year inflation expectations stayed in the mid‐4% range, signaling that price concerns have not fully abated.
Considering that May’s Consumer Price Index—released just two days earlier—showed a 4.2% year-over-year increase, the highest in three years, the Federal Reserve is likely to maintain its long-standing high‐rate policy for now. Futures markets have all but ruled out a rate cut in 2026, and volatility could spike ahead of the Fed’s June 16–17 policy meeting, depending on incoming data and oil‐price trends.
The energy sector underperformed amid the oil‐price slump, but the small-cap Russell 2000 rose 0.8% on hopes for a soft economic landing. Market observers warn that a final peace deal with Iran could further ease oil and inflationary pressures, while a breakdown in talks might trigger renewed volatility—especially in energy and defense stocks.