Damage at the site of a launchpad after an uncrewed Blue Origin New Glenn rocket exploded during a test at the Cape Canaveral Space Force Station in Cape Canaveral, Florida, on Friday. | REUTERS

A weekslong rally in space-related stocks came to an abrupt halt on Friday, with the explosion of a Blue Origin rocket serving as a glaring reminder of the risks that come with the potential riches investors hope to reap from the blossoming industry.

The Jeff Bezos-backed firm’s New Glenn rocket blew up Thursday evening while undergoing a test on a Florida launchpad, ahead of plans for it to deploy satellites for Amazon’s Leo, a rival network to SpaceX’s Starlink.

The explosion dealt a major setback to Blue Origin’s efforts, and will likely lead to delays.…