Rocket Lab USA, Inc. (RKLB) surged 7.98% during Monday's intraday trading session, marking a significant recovery and upward movement for the space technology company.

The sharp rise is attributed to three primary catalysts. First, the company has been confirmed for inclusion in the prestigious Nasdaq-100 Index, effective before market open on June 22. This inclusion is expected to trigger substantial passive fund inflows from index-tracking funds. Second, KeyBanc Capital Markets upgraded Rocket Lab to Overweight from Sector Weight, setting a price target of $135 and citing the company's strong position as a clear number two player in the commercial space sector behind SpaceX. Analysts called last week's sector-wide selloff "unwarranted."

Finally, the broader commercial space sector is experiencing a rebound following the historic initial public offering of SpaceX on Friday. While SpaceX's debut initially triggered profit-taking and fund rotation away from other space stocks, the subsequent positive sentiment and continued strength in SpaceX shares have lifted the entire sector. Rocket Lab, with its dual capabilities in launch services and satellite manufacturing, is seen as particularly well-positioned to benefit from the renewed investor interest in space infrastructure.