Global Markets Mixed as SpaceX Suffers Historic $400bn Wipeout, South African Fuel Prices Set to Fall

Global financial markets delivered a mixed performance on Tuesday, with the spotlight falling on a historic collapse in SpaceX shares that erased approximately $400 billion in market value in a single day. The dramatic sell-off followed the company’s announcement that it intends to borrow upwards of $100 billion, compounded by expectations that the US Federal Reserve may raise interest rates—a development that typically pressures highly valued technology stocks.

SpaceX, which listed earlier this month and reached an intraday peak of nearly $3 trillion on June 16, has now shed about $400 billion in market capitalization, bringing its valuation to approximately $2.03 trillion. The stock fell 16.4% on Tuesday, marking one of the largest one-day wipeouts in stock market history. The Dow Jones Industrial Average managed a modest gain of 0.3%, but the S&P 500 declined 0.4%, reflecting broader tech sector unease.

In contrast, South African motorists received positive news as fuel prices are set to decline in early July. According to the Central Energy Fund, 95-octane petrol could drop by around R1.44 per litre, wholesale diesel by up to R3.00 per litre, and paraffin by as much as R5.00 per litre—provided current Brent Crude oil prices and the rand exchange rate hold steady. This reduction is expected to ease inflationary pressures in the country.

The decline in Brent Crude oil prices, now trading just below $80 per barrel at $77.50, is attributed to positive developments from US-Iran peace talks. As part of a 60-day ceasefire deal, Iranian oil is once again flowing through the Strait of Hormuz. The US dollar firmed slightly, trading at $1.14 to the euro, while the rand stood at R16.42 to the dollar, R18.77 to the euro, and R21.75 to sterling.

On the Johannesburg Stock Exchange, the All Share index edged up 0.1% and the Top 40 gained 0.2%. Precious metals miners performed well—Valterra Platinum, Impala, and AngloGold Ashanti rose 4.3%. However, consumer stocks struggled, with MTN falling 3.6% and Vodacom down 1.8%. Standard Bank dropped 2.2% after issuing a trading update expressing concerns over interest rates. In London, the FTSE 100 closed 0.7% higher.

Asian markets mirrored the cautious sentiment, with Tokyo down 1.7%, Hong Kong falling 1.3%, and Sydney losing 0.3%. Meanwhile, gold traded at $4,136 per ounce, platinum at $1,646, and Bitcoin hovered just under $64,000.