SpaceX Stock in Focus as Citadel Securities Flags Major AI Risk

The SpaceX stock is once again in focus, as the shares of Elon Musk’s space technology and AI firm have recorded a significant surge today. The SPCX stock was up around 4% today and traded near the brief $160 mark at the time of writing.

Notably, this comes as optimism soars over the firm joining the Nasdaq-100 index next week, which could further boost the appeal of the firm. However, a recent report from Citadel Securities has fueled concerns over the risk-bet assets as well as the AI firms in the near future.

SpaceX (SPCX) Stock Gains Momentum Ahead of Nasdaq-100 Inclusion

The SpaceX stock rose 3.67% at the time of writing to $158.85, suggesting robust interest from market participants. The latest move extended the recent momentum in the SPCX stock as investors positioned themselves ahead of the company’s expected entry into the Nasdaq-100 Index on July 7.

Meanwhile, market participants believe the inclusion could significantly increase demand for the stock. Passive funds and exchange-traded funds that track the Nasdaq-100 will likely need to add SpaceX shares to their portfolios.

Analysts estimate that the index inclusion could trigger nearly $4 billion in passive buying. Such inflows often improve liquidity while increasing institutional ownership.

The SPCX stock has also secured a place in the Russell 1000 Index. However, it remains outside the S&P 500 because the benchmark continues to apply its 12-month waiting requirement before newly eligible companies can be added.

Citadel Securities Warns AI Rally Risks

Despite the upbeat sentiment surrounding SpaceX (SPCX) stock, Citadel Securities has urged investors to remain cautious about the broader market outlook. According to a Bloomberg report citing the trading firm, investors may be underestimating the commitment of Federal Reserve leadership to controlling inflation.

If interest rates remain elevated for longer, high-growth and risk-sensitive assets could face additional pressure. This has also fueled speculation over the impact on the crypto market, which is already facing heavy selling pressure over the past few weeks.

Meanwhile, the report also suggested that the AI-driven rally may encounter fresh obstacles. These include softer demand, declining investment returns, and increasing political as well as regulatory scrutiny across the sector.

Considering that, investors are evaluating whether the broader AI market obstacles would impact SpaceX’s performance as well in the coming days. Recently, Alliance CIO has warned that SpaceX’s bond sale plan hints at a major drawback for the broader financial market ahead.