<div id="readability-page-1"><p>Rocket Lab (RKLB) and AST SpaceMobile (ASTS) led a sharp pullback in space stocks on Tuesday as investors moved away from speculative growth names. The selloff came as rising Treasury yields, inflation worries, and crowded positioning in technology stocks weighed on high-beta sectors. For context, the 30-year U.S. Treasury yield climbed to its highest level since 2007. Importantly, rising yields tend to hurt companies valued heavily on future growth expectations.</p><h3>Claim 55% Off TipRanks</h3>Trade ASTS with leverage <p>Inflation concerns tied to energy markets also added pressure, even though oil prices eased on Tuesday. In addition, traders remain focused on geopolitical risk after NATO reportedly discussed ways to help commercial shipping through the Strait of Hormuz if disruptions continue into July. For a company like Rocket Lab, which is still being valued on long-term growth in launch services, satellites, and space systems, higher rates can quickly make the stock more vulnerable. Still, the pullback also followed a massive run. </p> <p>Before Tuesday's drop, Rocket Lab had surged more than 200% over the past six months, while other space names also posted huge gains. That made the sector more exposed once investors started questioning crowded tech and AI-linked trades. Still, analysts remain positive about the space industry due to defense spending, satellite growth, and government-backed lunar and orbital programs. However, Tuesday's selloff showed how fast momentum can reverse when a sector has already priced in a lot of optimism.</p> <h2><strong>Which Space Stock Is the Better Buy?</strong></h2> <p>Turning to Wall Street, out of the two stocks mentioned above, analysts think that ASTS stock has more room to run than RKLB. In fact, ASTS' price target of $87.36 per share implies 4% upside versus RKLB's 19.1% downside risk.</p> </div>

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<p>Rocket Lab (RKLB) and AST SpaceMobile (ASTS) experienced a significant decline as investors shifted away from speculative growth stocks amid rising Treasury yields and inflation concerns. The 30-year U.S. Treasury yield reached its highest since 2007, impacting companies reliant on future growth. Despite a recent surge in the space sector, analysts remain optimistic about long-term prospects, with ASTS seen as having more potential than RKLB.</p>

Why RKLB and ASTS Stocks are Down Today