AST SpaceMobile, Inc. (ASTS) soared 5.16% intraday on Tuesday, marking a significant recovery in trading.

The surge follows a broad decline in space stocks on Monday, where AST SpaceMobile and peers like Rocket Lab and Intuitive Machines dropped an average of 11% due to profit-taking, partly catalyzed by a Jefferies downgrade of Redwire. The sector rebounded early Tuesday as investor focus returned to the upcoming SpaceX initial public offering, which is expected to raise record cash and could value SpaceX at $2 trillion, creating a halo effect for related companies.

AST SpaceMobile had been among the space stocks that gained exceptionally in May, benefiting from the SpaceX momentum. The anticipation of the IPO continues to drive volatility and interest in the sector, contributing to the stock's intraday upward movement.