Index

S&P 500 Keeps Gates Shut on SpaceX After Rejecting Rule Changes

co-written by newsrooms.ai05. June 2026, 07:32

Index provider S&P Global has decided not to loosen its inclusion rules for the S&P 500. This rules out a swift entry by SpaceX into the world’s most closely watched equity index following its planned IPO. Other index providers such as Nasdaq and FTSE Russell, however, have already adjusted their rules, thereby paving the way for SpaceX into their indices.

What has S&P Global decided?

S&P Global announced on Thursday that it will retain the existing inclusion criteria for the S&P 500. In concrete terms, this means that companies must continue to meet all three core requirements before they can be added to the index.

Profitability: A company must be profitable under US GAAP accounting in the most recent quarter as well as in the sum of the four preceding quarters.
Exchange listing (seasoning): The company must have been listed on a recognized exchange for at least twelve months.
Free-float factor (IWF): A sufficient proportion of shares must be freely tradable.

“Exceptions to the requirements for financial viability, minimum listing duration, and free-float factor should not be granted solely on the basis of market capitalization,” the official statement reads.

Previously, S&P Global had consulted investors on possible rule adjustments, including shortening the minimum listing period, abolishing the minimum free-float requirement, and removing the profitability criterion. The outcome of this consultation was unambiguous: no exceptions.

Why is this a problem for SpaceX?

SpaceX is planning one of the largest IPOs in history. Elon Musk’s space company is targeting revenues of $75 billion, with a sought-after valuation of $1.75 trillion. This would immediately make SpaceX one of the ten most valuable publicly listed companies in the United States.

Despite impressive revenue figures, SpaceX currently does not meet the profitability criterion. In 2025, the company recorded a net loss of $4.94 billion, even as revenue rose 33 percent to $18.67 billion. In addition, SpaceX will not initially meet the required minimum listing period of twelve months following its IPO.

Inclusion in the S&P 500 would have been of enormous significance for SpaceX. Passive index funds that track the S&P 500 and manage trillions of dollars would have been compelled to purchase SpaceX shares upon its inclusion. This would have substantially increased demand for the stock.

Other indices are opening up more quickly

In contrast to S&P Global, other index providers have already loosened their rules to allow major new listings like SpaceX faster access.

Nasdaq adjusted its rules on May 1 to enable SpaceX and other large new listings such as AI company Anthropic to be included in the Nasdaq 100 more quickly. FTSE Russell followed shortly thereafter with its own accelerated inclusion rules. S&P Global has only created an adjusted inclusion pathway for its less prominent indices, the S&P Total Market Index and the Dow Jones U.S. Total Stock Market Index.

Background: Why does the debate over index inclusion matter so much?

Stock indices such as the S&P 500 are far more than mere measuring instruments. Trillions of dollars worldwide are invested in passive funds that replicate these indices on a one-to-one basis. When a company is added to such an index, all corresponding funds are automatically required to purchase shares. This creates substantial structural demand for the stocks in question.

For SpaceX and other technology giants that have long remained private, such as Anthropic or OpenAI, index inclusion is therefore a central issue at the time of an IPO. Index providers face pressure from both sides: they want to remain attractive for new, large listings, while also preserving the credibility of their rules-based systems.

S&P Global’s decision is regarded in financial circles as a signal that the integrity of the rulebook takes precedence over commercial interest in high-profile new additions. SpaceX’s path into the S&P 500 thus remains blocked for now, until the company meets the profitability requirements and the minimum listing period has elapsed.