Wall Street Week Ahead: Blockbuster SpaceX IPO Set to Test High-Flying US Stocks Rally

💡 The highly anticipated SpaceX IPO is poised to challenge the ongoing US stocks rally.

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Fed Chair Jerome Powell told reporters that the central bank needs "greater confidence" that inflation is sustainably declining before it will consider easing policy.

The 10-year Treasury yield surged to 4.8% in the aftermath, its highest level since October 2023. $TLT fell sharply as bond traders repriced the timing of the first cut from March to June.

Economic Data

Market participants are closely watching the upcoming earnings season, which kicks off in earnest next week. Companies such as $AAPL and $MSFT are expected to report strong revenue growth, but some analysts warn that valuations may be getting stretched.

IPO Fever

The highly anticipated SpaceX IPO is set to test the resilience of the US stocks rally. With a market capitalization of over $100 billion, SpaceX is one of the largest tech IPOs in recent history. The company's success will likely be closely watched by investors, who are eager to see if the IPO can maintain the momentum of the broader market.

Market Sentiment

The S&P 500 has been on a tear in recent weeks, with the index rising by over 10% since the start of the year. However, some analysts warn that the rally may be getting overextended, and that a correction could be on the horizon.

What It Means for Investors