Rocket Lab and space-sector shares fell on May 29, 2026.
A Blue Origin New Glenn rocket exploded at Cape Canaveral on the evening of May 28. The incident occurred during a hot-fire engine test and resulted in the total destruction of the vehicle.
Reports of a lower-than-expected valuation for the upcoming SpaceX IPO further dampened investor sentiment. The market sell-off reflected heightened concerns regarding industry-wide risks.
Investors sold Rocket Lab stock despite the event potentially strengthening the company's position against its primary competitor.