Stock & Bull Markets

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Stocks slump as Big Tech sinks and a strong May jobs report boosts odds for higher interest rates

The U.S. stock market had its worst day since October Friday as a sell-off in big technology companies weighed down the broader market and a strong jobs report boosted expectations that the Federal Reserve will be forced to hike interest rates at some point this year.

https://apnews.com/article/stocks-markets-iran-oil-trump-b5e10863b81cb1d6399f688ad8885c46?

💰 Chart du jour

Data: Financial Modeling Prep. Chart: Axios Visuals The S&P 500 (-2.64%) and Nasdaq (-4.18%) each had their worst single-day drops of the year yesterday after a stronger-than-expected jobs report triggered a market selloff. Covers of today's Washington Post and New York Times. More on markets ... Jobs Day.

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📉 Another sharp sell-off hit tech stocks today, with some AI-related shares posting double-digit losses shortly after noon ET. Go deeper.

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📊 SpaceX's massive IPO, visualized

Data: S&P Capital IQ Pro. Chart: Erin Davis/Axios Visuals SpaceX's projected $1.77 trillion market cap would equal nearly the combined value of the 29 biggest U.S. IPOs since 2000, Axios' Madison Mills and Erin Davis report. That's based on those companies' market caps at closing time on the day they went public, adjusted for inflation. 💵 The Elon Musk-led company is set to list tomorrow on the Nasdaq under ticker symbol SPCX, with shares expected to be priced at $135. Go deeper ...

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🚀 SpaceX IPO takes off

Photo illustration: Sarah Grillo/Axios. Photo: Johannes Neudecker/picture alliance via Getty Images SpaceX shares were up over 25% in initial trading by midafternoon, launching it into the pantheon of the largest U.S. companies, Axios' Madison Mills reports. Shares were trading at about $170 this afternoon, indicating a $2.22 trillion market cap. 💰 The offering made CEO Elon Musk the world's first trillionaire, Forbes declared. Data: Financial Modeling Prep; Chart: Alex Fitzpatrick/Axios SpaceX went into its IPO trading at 90 times its sales (not profits — sales). Adam Johnson, portfolio manager of the Bullseye American Ingenuity Fund, says that suggests the company's valuation is divorced from its underlying fundamentals. 👀 What we're watching: What happens after the lock-up period ends. Once the company's next earnings report drops, early investors can sell up to 20% of their initial holdings to realize some gains. Get the latest.

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🚀 SpaceX levels off

Data: FactSet. (The shares priced at $135 a share on June 11 and began trading on June 12, closing at $160.95 a share.) Chart: Matt Phillips/Axios Investors are tempering their enthusiasm for SpaceX shares, which tumbled over 16% yesterday, vaporizing roughly $400 billion in market value, Axios' Matt Phillips writes. The stock has now declined more than 20% in the last three trading sessions. The slump came even as SpaceX announced a deal to provide computing power to AI startup Reflection that could generate $6.3 billion in sales. 🖼️ The big picture: Even after the record $86 billion IPO earlier this month, SpaceX announced plans yesterday to raise at least $20 billion more by selling bonds — a sign that giant tech companies are leaning heavily on the corporate bond market, not just stocks, to fund the AI buildout. Keep reading ...