The space sector was on a strong run through most of May 2026. Redwire (RDW) surged 181% year-to-date (YTD), Momentus (MNTS) jumped 109% in a single session, and Rocket Lab (RKLB) gained 71.95% since January. The rally was driven by excitement around SpaceX’s planned Nasdaq listing, which could value the company at up to $1.75 trillion. Money flowed into almost anything tied to space, and the idea was simple. When SpaceX goes public, the rest of the sector benefits.
Then things turned. A Blue Origin rocket explosion shook confidence, and investors who were sitting on big gains started taking profits. That quickly pushed many space stocks lower.
