SpaceX IPO leads Friday market watch as oil falls and AI chip stocks gain

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SpaceX IPO and Friday market

Highlights

SpaceX IPO raises $75 billion and is expected to debut Friday with a 25% to 30% gain, potentially attracting short-term investors.
WTI oil prices fall over 3% to below $85 per barrel on optimism around a possible U.S.-Iran peace deal and reopening of the Strait of Hormuz.
AI chip stocks like Advanced Micro Devices rise after Citi upgrades AMD on agentic AI demand, while Adobe drops 7% post-earnings due to growth concerns and analyst downgrades.

Market catalysts and company moves

As reported by CNBC, Friday's watchlist is led by SpaceX's market debut, with expectations for a 25% to 30% gain at the open after a $75 billion raise. The commentary says a bigger jump could attract short-term flippers and leave the company with a weaker shareholder base, while pointing to previous disappointing patterns seen in Figma and Cerebras.

Broader sentiment is also improving as stock futures move higher on hopes of a peace deal between U.S. and Iran that could reopen the Strait of Hormuz before next week's G7 Summit. Oil reflects that optimism, with U.S. benchmark WTI down more than 3% to below $85 a barrel, while the 10-year Treasury yield is little changed.

Adobe is under pressure after announcing with earnings that CFO Dan Durn is leaving to join Marvell. Even though the software company beats on both revenue and profit for the quarter, its shares are down 7% as investors focus on signs of slowing growth and on downgrades from Stifel, Wolfe Research and Evercore ISI.

Advanced Micro Devices gets a lift after Citi upgrades the stock to buy from hold. Citi says agentic AI remains a major tailwind for AMD's CPU business and now sees the company as a credible second source in GPUs behind Nvidia, with Meta expected to buy more AMD chips than the market currently models.

JPMorgan also raises its Nokia price target to $21 from $14, arguing the group has repositioned itself as an AI networking play through its Nvidia partnership. In index news, Astera Labs, CoreWeave, Nebius, Rocket Lab and Teradyne are set to join the Nasdaq 100 before the June 22 open, while Charter Communications, Cognizant Technology Solutions, Insmed, Verisk and Zscaler are due to leave the benchmark tracked by Invesco's QQQ ETF.

Sector pressure and valuation resets

Analyst actions also point to changing leadership across sectors. Bank of America cuts price targets across the medical device group, including Intuitive Surgical, Medtronic, Stryker, Becton Dickinson and Boston Scientific, after what is described as a strong run for the group gives way to weaker momentum and price-to-earnings compression since the fall.

In retail, Williams-Sonoma is reinstated as a buy at Bank of America with an unchanged $250 price target, implying about 15% upside. The call cites a resilient customer base and what analysts describe as a demographic sweet spot, while highlighting the company's positioning in affordable luxury under CEO Laura Alber.

Barclays trims its FedEx price target to $425 from $450 to reflect the spinoff of FedEx Freight, but still keeps the company among its top buy ideas in transportation. The bank says earnings and valuation could improve further as the economy strengthens and FedEx continues to integrate its network.

Competitive pressure is also building in online real estate. Keefe Bruyette says Alphabet's Google is becoming a threat to Zillow and other portals as it expands further into real estate advertising, and Goldman echoes that concern by cutting its Zillow price target to $40 from $53.

In our earlier coverage of SpaceX’s Nasdaq debut, we detailed how the company’s IPO was set to raise $75 billion by selling 555.6 million shares at $135, implying a roughly $1.77 trillion valuation and putting demand for mega tech listings in focus. We also highlighted how hopes for a U.S.-Iran agreement that could reopen the Strait of Hormuz were pressuring oil and lifting broader risk sentiment alongside other high-profile fundraising and policy developments.

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