Tom Lee: SpaceX’s Century-Defining IPO Is the Culprit Behind U.S. Stock Market Weakness, Expected to Drive Market Recovery After Listing

Odaily reported that Tom Lee, known as "Wall Street's Oracle" and partner and head of research at Fundstrat, stated in a client research report released on Tuesday that SpaceX’s upcoming entry into the capital market is a primary factor behind the recent volatility in U.S. stocks.

Tom Lee analyzed that the core logic behind the current weakness in U.S. stocks is clear: to participate in this blockbuster IPO, market participants are actively selling off their existing stock holdings to accumulate cash, and the fund diversion effect continues to intensify. However, he also believes that once SpaceX performs well on its first day of listing, market risk appetite will recover, thereby driving the recovery of other individual stocks. This round of SpaceX’s IPO has been met with strong market demand, with oversubscription levels continuing to rise. According to Fundstrat’s statistics, the current subscription multiple for this issuance has reached 4 times. Based on market trends, it is projected that the oversubscription ratio could climb to 10 times before the official listing this Friday.