SpaceX weakness and rate concerns test investor confidence

Global equities have come under pressure after failing to sustain the recent push toward record highs, with sentiment dented by the sharp post-IPO weakness in SpaceX.

 
The move seems to be a combination of profit-taking, valuation reassessment and the unwinding of extremely bullish positioning following one of the most anticipated listings in recent years. The speed of the decline suggests many investors were positioned for a continuation of the AI and space-investment narrative, leaving the stock vulnerable once momentum stalled. The decline has weighed on broader confidence in high-growth, innovation-led stocks and reignited concerns that investors may have become overly concentrated in a small number of AI and technology themes. The selloff has encouraged some profit-taking across the sector, particularly after an extended rally that pushed some indices more than 30% higher from their April lows.

Technically, the broader uptrend remains strong. The Nasdaq continues to trade above its major moving averages, consolidating the long-term uptrend. However, momentum has clearly softened, with RSI slipping back toward neutral territory and price pulling away from recent highs. The index is now testing the strength of dip-buying demand that has repeatedly supported the market this year. For now, the move looks more like a sentiment-driven correction than a fundamental shift in the AI and earnings narrative, but it highlights how dependent market leadership has become on a relatively small group of growth-focused stories.