Rocket Lab Corp (NASDAQ:RKLB) shares are under pressure Tuesday as investors rotate out of space and aerospace names. Rising Treasury yields and renewed inflation worries are hitting growth stocks broadly, and the sector is also cooling off after a strong run ahead of the expected SpaceX IPO.

Rocket Lab shares are under pressure. Why are RKLB shares declining?

Growth Stocks Struggle As Rate Fears Return

Space‑related equities are losing altitude as the macro backdrop turns more hostile. U.S. futures were soft and the Nasdaq 100 slipped Tuesday. Inflation concerns resurfaced after economist Ed Yardeni argued that the Federal Reserve is falling “behind the curve,” pointing to recent CPI and PPI readings as evidence that price pressures are not easing fast enough.

Yardeni suggested the Fed may abandon its easing stance entirely and shift toward a tightening posture at the June meeting, with a possible 25 basis point hike in July. Bond yields reflected that anxiety, with the 10‑year Treasury near 4.60% and the 2‑year around 4.06%. Even so, the CME FedWatch tool still shows markets expecting no rate change in June.

SpaceX IPO Chatter Adds Another Layer Of Volatility

The upcoming SpaceX IPO is also creating turbulence across the commercial space industry. As the June debut approaches, some analysts are warning that the offering could be unusually volatile because of the influence of ...