What drove the stock market last week — before and after SpaceX's historic IPO

Breaking news from the markets: Wall Street exhaled on Friday after SpaceX nailed its record-breaking debut. The success wiped away a week of anxiety over whether the market had the appetite to digest the biggest initial public offering in history. SpaceX closed up 19% at nearly $161 per share for a market value of more than $2.

1 trillion, making it the sixth-largest U. The stock opened at $150 — above the $135 fixed offering price. It rallied above $176 as one point before coming in some The AI and rocket company raised $75 billion and made CEO Elon Musk the world's first-ever trillionaire.

Economic Details

Hours before SpaceX began trading, Jim Cramer said that early signs of demand for the IPO looked promising — allaying some of the fears in the market about whether the banks would stick the landing and what the Club had been protecting against all week by making incremental sales to boost our cash. "We're over the hump," Jim declared during Friday's Morning Meeting . While we prepared for the worst, SpaceX's debut actually sent stocks higher Friday.

Signals of a possible U. -Iran peace deal soon certainly helped. The S & P 500 advanced 0.

5%, bringing its weekly gain to nearly 0. 3% on Friday and ended the week up 0. Friday's rally padded Thursday's major comeback following Wednesday's dubbing.

Analyst Views

Here is a closer look at what drove the market last week, including our growing cash pile, a massive supply deal between Corning and Amazon , and the inflation setup ahead of this coming week's Federal Reserve interest rate meeting. Our cash pile grew In the walk-up to SpaceX's debut, Jim warned that mega IPOs could be a headwind for the stock market. Excessive equity supply can lead to investors selling their existing holdings in order to raise cash and buy shares of the hot offering.

We did see some of that as the week played out. The two other mega IPOs coming down the pike are OpenAI, which filed its IPO paperwork this past Monday, and Anthropic, which filed earlier this month. "We want the deals to be under control because otherwise it can be disastrous," Jim said during "Mad Money" on Thursday.

It was concerns like these that led us to trim several of our positions last week. Our theory: Raise more cash in the case of a downturn and to hedge against any SpaceX-induced volatility. We sold some Goldman Sachs and Qnity on Monday, Arm on Tuesday , and Eaton and Cardinal Health on Wednesday .

Economists are analysing what the news means for the markets.