AST SpaceMobile (ASTS), Rocket Lab (RKLB) Lead Space Stock Sell-Off After Blue Origin Explosion

Space stocks plunged on May 29, 2026 after Blue Origin’s New Glenn rocket exploded during a routine hot-fire test at Cape Canaveral late May 28. AST SpaceMobile (ASTS) tumbled as much as 18%, Rocket Lab (RKLB) fell over 6%, and Planet Labs (PL), Intuitive Machines (LUNR), and Voyager Technologies (VOYG) each dropped more than 5%. The Procure Space ETF (UFO) was on track for its worst session of the year. The explosion heavily damaged Blue Origin’s only operational New Glenn launch pad; no injuries were reported. Founder Jeff Bezos said the company will rebuild. The rocket was slated to carry Amazon Project Kuiper satellites and is central to NASA’s Artemis lunar lander program. The sell-off halts a sector rally driven by anticipation of SpaceX’s planned initial public offering. SpaceX filed its IPO prospectus last week, targeting a mid-June Nasdaq listing under ticker SPCX with a valuation between $1.5 trillion and $2 trillion. The Procure Space ETF had surged more than 24% in the prior five days and over 100% in six months.