Wall Street funds may start reducing their holdings to welcome SpaceX's IPO.

Large mutual funds on Wall Street are preparing to include high-profile IPOs like SpaceX and OpenAI in their investment portfolios, potentially reducing their holdings in other large stocks. John Flood, head of equity execution services for the Americas at Goldman Sachs Global Banking and Markets, stated in a report to clients that for passive funds, the potential inclusion of new public companies may force them to reduce their holdings in other large stocks. Previously, the Nasdaq 100 and S&P 500 indices introduced new rules to speed up the inclusion of newly public companies with extremely high market values, which may apply to SpaceX, OpenAI, and others.