New York, Feb 4, 2026, 21:04 EST — The market has closed.
- Rocket Lab shares plunged Wednesday, closing out a volatile week marked by sudden shifts.
- Washington’s move to put NASA’s Mars Sample Return plan on hold has cast a shadow over space-sector stocks.
- Attention turns to Rocket Lab’s February 26 earnings report and any news on its Neutron rocket development.
Rocket Lab Corp shares dropped 10.0%, closing Wednesday at $73.11 after falling from an $81.35 opening to a low of $68.56 during the session. After-hours trading saw the stock edge up slightly to $73.35. This marks the third consecutive session of sharp swings.
Traders aren’t focused on the latest Rocket Lab quarter. Instead, it’s all about how fast space stocks react to government spending news and what the market currently makes of the so-called “SpaceX trade.”
Rocket Lab is feeling pressure from Washington after Congress refused to fund a 2031 mission aimed at returning Mars samples, linked to NASA’s Perseverance rover, Benzinga reported. The company had pitched a $4 billion plan for this long-term project, which had become a key sentiment driver for its stock.
The underlying program has faced mounting pressure for months amid rising costs and tighter budgets from lawmakers. On Jan. 8, a House “minibus” spending package wiped out funding for Mars Sample Return, effectively canceling the project, Scientific American reported. Meanwhile, Congress still allocated funds for other Mars initiatives. Scientific American
Rocket Lab saw a jump the day before, as the sector became a stand-in for Elon Musk’s latest play. On Tuesday, the stock climbed 3.9% after Musk unveiled plans to merge SpaceX with xAI, valuing the new entity at $1.25 trillion, according to Reuters. Planet Labs nudged up 1.2%, AST SpaceMobile gained 4.3%, and Intuitive Machines added 4.7%. “Others may buy into Musk’s grand vision of data centers in the cosmos,” said AJ Bell investment director Russ Mould. Seraphim Space CEO Mark Boggett described it as “the strongest validation yet that space will be the backbone of the next wave of AI.” Reuters
Rocket Lab has focused on execution and launch frequency. After completing its 81st Electron mission, founder and CEO Sir Peter Beck noted in a Jan. 29 statement, “Two launches in eight days is a strong start to the year.” GlobeNewswire
Investors, however, face a broader set of concerns than just Electron. In a Jan. 21 filing, Rocket Lab revealed that qualification testing of a Neutron stage-1 tank ended with a rupture during a hydrostatic pressure test—a ground-based stress check. The company is now analyzing the data to determine what, if any, effect this might have on Neutron’s launch timeline.
The immediate risk? A sector valued for growth, with volatile headlines and the next catalyst possibly coming from Congress, Musk, or Rocket Lab’s schedule. If investors stop seeing long-term NASA projects as just bonus potential, the stock’s baseline could shift dramatically.
Rocket Lab is set to release its Q4 and full-year 2025 earnings after U.S. markets close on Thursday, Feb. 26, followed by a conference call at 5 p.m. Eastern. Investors will focus on 2026 launch cadence goals, demand for space systems, and any updates on the Neutron rocket’s development.
