Virgin Galactic Surges 22% to $5.58 on Flight Test Resumption, SpaceX IPO Buzz

Virgin Galactic Holdings (SPCE) surged 22% to an all-time high of $5.58 on Friday, May 29, 2026, as investors piled into space stocks following the company's resumption of flight testing and mounting excitement around SpaceX's expected initial public offering. The rally far outpaced the broader industrial sector, which declined 0.16%, with the stock more than doubling from recent lows near $2.50.

The gains were driven by Virgin Galactic's successful glide-flight test of its VSS Unity spacecraft at Spaceport America, marking the company's first return to active flight operations in nearly two years. The test demonstrated that the company's flight systems, safety operations, and infrastructure remain operational ahead of planned commercial flights in Q4 2026. Separately, retail investor enthusiasm surrounding reports of a potential SpaceX IPO at a $1.75–$2 trillion valuation has lifted the entire aerospace sector, with Virgin Galactic benefiting as a high-profile proxy trade.