SpaceX eyes an IPO at a valuation that has stunned markets, prompting the Nasdaq 100 and other indexes to loosen rules so the company could join early. The move rattled large funds that track those indexes, raising the possibility that pension plans might hold SpaceX shares whether investors want them or not.

Yet the S&P 500, the world’s largest index, declined to adopt a similar early‑entry policy. Its editors say SpaceX must wait at least twelve months and prove profitability over the last four quarters before eligibility. That hurdle is steep, as SpaceX has never posted a profit per its S‑1 filing.

Bloomberg Intelligence’s James Seyffart called the decision “genuinely surprising,” noting that S&P’s stance bucks the trend of relaxed rules elsewhere. Analysts warn the company’s projected $1.78 trillion market cap may be inflated; Morningstar values it at roughly $780 billion and labels the IPO “not an ideal entry point” for retail investors.

Although the Nasdaq 100 and FTSE Russell have already granted SpaceX early inclusion, the S&P 500’s decision keeps pension funds out of the firm for another year. The ruling underscores how index rules shape exposure for institutional investors, and it signals that even a high‑profile IPO must satisfy traditional profitability tests before joining the market’s most watched benchmark.