SpaceX's planned Nasdaq listing on June 12 is expected to raise $86.5 billion at a roughly $2 trillion valuation, making it the largest US IPO on record and a major test for equity markets. Investors are already seeking exposure, with $14 billion flowing into funds that hold stakes in the company and ETF providers preparing new products tied to the listing. The offering could also force significant portfolio adjustments, with passive funds tracking major benchmarks expected to absorb a large share of SpaceX's public float, potentially affecting liquidity and existing holdings.

Investors are pulling back on crash protection as stocks extend their rally, driving hedging costs to multi-month lows and fueling demand for bullish options. A sharp rebound in heavily shorted stocks highlights pressure on bearish positions, while gains remain concentrated in AI-linked sectors. Despite softer economic data and geopolitical risks, markets show growing tolerance for risk and reduced demand for downside safeguards.

Big Tech companies are tapping overseas bond markets at record levels to help fund massive AI infrastructure investments, driving unprecedented issuance in euro, sterling, yen, Swiss franc and Canadian dollar corporate debt markets. Deals from Alphabet and Amazon have boosted non-financial US corporate borrowing abroad to new highs, while investors increasingly buy the bonds to gain exposure to the AI growth story outside the US market.

Investors are pushing US stocks higher on strong earnings and expectations that AI investment will sustain growth, even as valuations climb above historical norms. "We do not believe that we're in a bubble…this market can continue to go higher," said Federated Hermes' Steve Chiavarone, adding that "secular bull markets ... are 20-year events ... we think we're in the middle," underscoring confidence despite overheating concerns.

During a confirmation hearing, Federal Reserve Chair Kevin Warsh expressed support for a measure known as "trimmed mean" inflation, which filters out certain price moves and suggests that inflation is lower than other gauges would indicate. However, debate continues about which methods of measuring inflation are most accurate and instructive in the long run.

The Securities and Exchange Commission has proposed rescinding its 2024 climate disclosure rule, calling it an overreach that would impose significant costs on companies without clear investor benefit. The move opens a 60-day comment period and reflects a broader push to revisit disclosure requirements, while critics warn the change could reduce transparency around climate-related financial risks.

Federal Reserve Vice Chair for Supervision Michelle Bowman has expressed willingness to overlook a recent increase in inflation, attributing it to temporary factors such as higher energy prices and tariffs. Bowman's stance aligns with that of Fed Chair Kevin Warsh and supports the consideration of rate cuts, contrasting with other officials who are concerned about prolonged inflation and potential need for higher rates.