SpaceX IPO Triggers U.S. Stock Weakness as Subscription Demand Hits 4x, Tom Lee Says

According to Fundstrat partner Tom Lee, SpaceX's upcoming initial public offering has become the primary driver of recent U.S. stock market weakness, as market participants liquidate existing holdings to raise cash for the offering. Tom Lee noted that once SpaceX debuts with a strong first-day performance, investor risk appetite should recover, potentially lifting other equities.

Fundstrat estimates the IPO's subscription ratio has reached 4 times as of Tuesday, with expectations to climb to 10 times by Friday's official listing date.