Space ETFs and Stocks Plunge in July, with UFO Down 13.5% Month-to-Date

According to MarketWatch, space-related exchange-traded funds and individual stocks plunged sharply in July amid rising concerns about U.S. defense spending and political uncertainty. Procure Space ETF (UFO-US) fell 13.5% through late July after declining 22.4% in June, while other space-themed ETFs including Roundhill Space and Technology ETF (RSPY-US) posted similar losses. Individual space companies suffered steeper declines, with Intuitive Machines (LUNR-US) down 42% for the month and Satellogic (SATL-US) falling 38%; at least 10 space-related stocks have declined over 30% in July, including AST SpaceMobile (ASTS-US) and Planet Labs (PL-US).

Analysts attributed the selloff partly to investor concerns that Democrats could gain control of the U.S. House following midterm elections, potentially complicating approval of new defense spending measures. KeyBanc analyst Michael Leshock noted that faster-growing defense technology companies with less-established revenue bases may face the largest impact, particularly those relying on budget reconciliation processes for new appropriations.