Shares of Elon Musk's rocket and AI company Space Exploration Technologies Corp. rose 4.5% in New York premarket trading Wednesday, signaling a slower pace of gains than previous sessions.

The company formally known as Space Exploration Technologies Corp. has rallied about 49% since going public through Tuesday's close, overtaking Amazon in value to become the fifth-largest stock in the world, and is now roughly $150 billion away from Microsoft Corp.

The rally signals that there's still consistent demand for the stock after its record initial public offering. That's helped ease some concerns that the market would have trouble absorbing large IPOs, especially with potential public offerings from artificial intelligence competitors Anthropic PBC and OpenAI expected by year's end. Both would likely be in the $1 trillion valuation range.

SpaceX stock's run is "really not at all unexpected, especially with the fact that they had 30% of the issue available for retail investors," said Brian Mulberry, chief market strategist at Zacks Investment Management.

The gains come as investors look ahead to key events for the macroeconomic and geopolitical backdrop. Wednesday marks the Federal Reserve's first rate decision under new chairman Kevin Warsh, spurring extra focus on communication style in the press conference. In addition, the US and Iran are set to formally sign an interim peace deal on Friday.

Some of the volatile intraday trading seen in shares of SpaceX can be attributed to low float, which might also be giving its stock price a boost. There are a relatively small portion of SpaceX shares available to trade, with only about 4.2% of total stock available on day one. As lockups keeping insiders from selling expire in the coming months, it could add downside pressure to shares.

There's also the possibility for index inclusion in the coming weeks. Nasdaq Inc. changed its rules to allow faster entry to shares of huge companies like SpaceX, which would force funds that track indexes such as the Nasdaq 100 to buy the stock. S&P Dow Jones Indices decided not to change its rules to allow new IPOs faster entry, meaning SpaceX won't be immediately included in the S&P 500.