SpaceX Slides, AMC Tumbles on Share Sale; IBM Gains on AI Deal

SpaceX shares extended their losing streak to a fourth session, sliding further toward their initial public offering price of $149.34, as a broad tech selloff weighed on the stock. The company, which went public earlier this year, has seen its shares decline steadily amid rising interest rate concerns and profit-taking in the technology sector. The selloff has pushed the stock closer to its IPO price, with the forward P/E ratio compressing as investors reassess growth expectations in a higher-rate environment. The earnings yield on SpaceX now stands at roughly 3.2%, compared to the 10-year Treasury yield of 4.5%, widening the gap that the Fed model suggests makes equities less attractive relative to bonds.

For equities traders, the moves highlight divergent sector dynamics. SpaceX's decline reflects broader risk-off sentiment in growth stocks, while AMC Entertainment's 6% drop came after the movie theater chain announced a direct sale of 95.25 million shares to institutional investors for roughly $200 million, diluting existing shareholders. The offering adds to AMC's already high share count, with the company's buyback yield remaining negligible as it prioritizes debt reduction. IBM, meanwhile, gained 2% after revealing a partnership with OpenAI to integrate artificial intelligence into cybersecurity solutions, underscoring investor appetite for AI-related plays. The move comes as sector rotation favors AI and cybersecurity names, with breadth indicators showing a narrowing rally in tech. Options-implied volatility on IBM rose 5% following the announcement, signaling heightened expectations for future price swings. For real-time price updates on these stocks, traders can check NowPrice's live quotes.

Looking ahead, market participants will monitor tech earnings season for further clues on sector valuation, as well as any additional share offerings from companies like AMC that could pressure stock prices. The Federal Reserve's policy stance and upcoming economic data will also influence near-term trading in growth names. A sustained move above the 10-year yield of 4.5% could trigger further multiple compression, while a dovish pivot might revive demand for high-growth stocks. Traders will also watch for shifts in options-implied volatility across the tech sector, as elevated vol often precedes larger price moves.