SpaceX shares experienced a difficult entry into the Nasdaq-100 index, falling 6.8% to $149.47 on their first day of trading. While the price remained above the $135 IPO price, it dipped below the opening trading price of $150 and a recent peak above $200. This decline occurred amidst a broader downturn in technology stocks.

The underperformance is a setback for investors anticipating that inclusion in the Nasdaq-100 would drive demand from index-tracking funds. Funds managing approximately $800 billion were expected to purchase shares to mirror the index. However, some analysts had cautioned that anticipated index buying might have already been priced into the stock, which saw a nearly 6% increase the prior week.

Traders and hedge funds focused on the Nasdaq addition, but the overall weakness of the Nasdaq index on Tuesday likely exacerbated SpaceX's stock drop. The initial trading performance suggests that passive index buying may not be enough to overcome broader market headwinds for newly listed tech companies.