Tom Lee: SpaceX’s Century-Defining IPO is the Culprit Behind U.S. Stock Weakness, Could Drive Market Recovery Post-Listing

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

Tom Lee analyzed that the core logic behind the current weakness in U.S. stocks is very clear: to participate in this blockbuster IPO, market participants are actively selling off their existing stock holdings to accumulate cash, and the capital diversion effect continues to intensify. However, he also predicts that once SpaceX delivers a strong performance on its listing day, market risk appetite will rebound, thereby driving a recovery in the performance 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, and based on market trends, the oversubscription ratio is expected to climb to 10 times before the official listing this Friday.