SpaceX loses $1 trillion as Asian selloff deepens over Iran
A global stock selloff led by Asian rate hikes and the prolonged Iran conflict has erased over $1 trillion from SpaceX’s valuation, while oil prices defy supply constraints due to high global inventories.
Global equities fell as Asian markets led a sharp selloff, driven by South Korea's central bank raising interest rates to combat persistent inflation. The tech-heavy KOSPI plunged 6.37%, pushing its monthly losses to 21.84% and deepening its correction territory. The declines rippled into Europe, with the Stoxx 600 down 0.26% and the FTSE 100 falling 0.37% in early trading.
The broad tech weakness severely impacted SpaceX, which saw its stock dip below its $135 IPO price before recovering slightly to $135.27. The shares have lost more than $1 trillion in market capitalization since peaking at $225. This collapse pushed Elon Musk’s net worth down to $856 billion, stripping him of his trillionaire status according to Bloomberg’s billionaire index.
Fueling the market anxiety in Asia is the ongoing war with Iran, as the region imports much of its fuel. However, Brent crude defied these tensions, trading at $84 per barrel after hitting a peak of $114. The relatively low price persists despite the Strait of Hormuz being partially or totally closed for six months.
Bridget Payne of Oxford Economics attributed this disconnect to robust global stockpiles. “Despite record drawdowns, total global oil inventories remain above their recent historical average, continuing to reduce the risk of an acute crude shortage,” Payne noted. She cautioned that much of this buffer is unrefined crude, offering limited protection against weaker refinery yields and the loss of major diesel exporters like Russia.
The risk of a sudden supply shock remains elevated as the military conflict intensifies. President Trump has been briefed on escalating the war, including a ground invasion of Kharg Island or strikes on an underground nuclear site known as Pickaxe Mountain. Iran recently attacked U.S. sites in Jordan, Kuwait, and Bahrain, prompting U.S. retaliatory strikes on Iranian coastal sites and the disabling of an oil tanker in the Gulf.
U.S. index futures pointed to a muted open, with Nasdaq 100 futures down 0.19% and S&P 500 futures flat. In other corporate news, Trump Media & Technology Group dropped 27.72% year-to-date as prominent tech analyst Dan Ives announced his departure from Wedbush. Ives is founding Yorkville Ives, a merchant bank tied to Yorkville Advisors, a New Jersey-based firm that has bankrolled the Trump-linked media company.
