Wall Street launches structured products around SpaceX stock price fluctuations, seeking to hedge against post-IPO downside risk

Glonghui, July 29 — Following the sharp sell-off after SpaceX's listing, Wall Street is ramping up the launch of complex investment products tied to its shares, aiming to help investors hedge against potential further declines. According to regulatory filings, at least five financial institutions, including Morgan Stanley and Marex Group Ltd., are seeking to launch structured notes linked to SpaceX stock. These products attract buyers by limiting investors’ downside risk—some offer protection against declines of up to 50%—but, at the same time, also cap returns over the coming months or even years.