Public Markets 3 Days

Last updated: May 20, 2026, 8:37 PM ET

SpaceX's IPO and the Corporate Upheaval Ahead

SpaceX filed for its long-awaited IPO, revealing a quarterly loss of $4.28 billion and disclosing for the first time that the company is unprofitable, according to documents lodged with regulators. Under CEO Elon Musk, the satellite and AI firm controls its board through an 85% super-voting share structure that shields the founder from accountability to public investors. The offering, expected to raise tens of billions of dollars as early as mid-June, would rank as the largest in history and list on Nasdaq under the ticker SPCX. Antonio Gracias, founder of Valor Equity Partners and a close Musk ally, holds a 7.3% stake, making him the second-largest shareholder set to benefit from the public debut. The prospectus also shows the company is all "trucked up" on growth but unwilling to offer even its closest partners favorable terms. Meanwhile, SoftBank-backed SB Energy Corp. is preparing its own confidential U.S. IPO filing as it chases data-center ambitions, signaling a broader wave of listings from infrastructure plays betting on AI demand.

Nvidia's Record Quarter and the AI Spending Surge

Nvidia reported profit of $58.3 billion in the first quarter, a 211% jump from a year earlier, as astronomical demand for data-center computing from major tech firms drove revenue to $82 billion. The chipmaker returned more than $80 billion to shareholders and forecast better-than-expected results, sending semiconductor stocks higher even as some names whipsawed on the news. Wall Street analysts are now racing to lift price targets on the broader chip supply chain, with firms doubling their estimates for Japanese memory-chip maker Kioxia after a strong outlook. The AI boom is reshaping capital allocation across the sector: Samsung and TSMC are driving a historic rally in Korean and Taiwanese equities, while power-plant owners climbed after the largest U.S. grid accelerated plans to pair data centers with energy producers. Nvidia's results also helped lift Asian markets, with equities set to rise Thursday on Wall Street's constructive reading of U.S.-Iran talks. Google and Blackstone are co-creating a new AI cloud company with $5 billion in equity, underscoring how the chipmaker's success is spawning downstream infrastructure plays worth billions.

Trump's Legal and Political Calculus

President Trump pursued an extraordinary legal settlement with the IRS that grants his family immunity from audits, relying on a mechanism created by Congress that legal experts warned was vulnerable to manipulation. The deal, combined with a self-pardon that shields the president and family from federal investigations indefinitely, has drawn comparisons to no prior administration using federal power so openly to advance personal and familial interests. A $1.8 billion compensation fund for allies who claim government mistreatment appears to violate the administration's own policies and tests constitutional limits. The DOJ accused prosecutor Carmen Lineberger of stealing sealed documents related to the Trump classified materials case, while the department also dropped a planned attack on Iran after the president's team called off the operation. On the political front, Trump unseated Republican incumbents in primaries but alienated GOP senators who are furious about the president working to remove their colleagues. Harvard sued to dismiss a Trump administration action over antisemitism allegations, and RFK Jr. fired leaders of a key health task force, further straining the administration's public-health credibility.

Bond Markets, Gold, and Geopolitical Risk

The global bond selloff pushed long-maturity yields to their highest levels since the global financial crisis, with the 30-year U.S. Treasury yield reaching levels unseen since 2007 as inflation fears mounted. A majority of Federal Reserve officials warned that rate hikes may be necessary if inflation stays above 2%, according to April meeting minutes, while the Fed's own survey showed most officials embraced a higher-rate scenario. Gold held steady near $2,340 per ounce as optimism over a potential U.S.-Iran truce eased bets on rate increases, though slight Treasury yield gains earlier pressured the nonyielding metal. Oil inched higher after plunging on Trump's claim the U.S. was in the "final stages" of an Iran deal, while copper held steady as traders weighed mixed signals on Middle East peace talks. Codelco is targeting $2 billion in savings by consolidating three Chilean copper mines, even as Moody's cut Mexico's credit rating to one notch above junk over fiscal weakness. U.S. stock futures were largely unmoved by the Iran de-escalation, but investors warned of a potential correction as high-flying equities defied bond gloom.

Real Estate, Housing, and China's Export Woes

Avalon Bay Communities and Equity Residential are nearing a merger that would create the largest multifamily REIT by value, combining two of the biggest apartment owners in the U.S. in a deal that reflects the sector's consolidation push. The House passed a housing bill aimed at lowering costs with overwhelming bipartisan support, ending months of Republican divisions. In China, the yuan's strength is pressuring exporters on a scale rarely seen in recent years, complicating Beijing's currency management as the government cut spending at its fastest pace in six months. India's power demand hit records as blistering heat pushed cooling use higher, while the Trump administration sought to boost energy exports to Delhi during Marco Rubio's visit. Japan's government agreed to take a 40% stake in tank-maker KNDS before its IPO, and the EU expedited its long-delayed U.S. trade deal in a bow to Trump's demands. The broader IPO market faces headwinds as private-equity CV-squared funds keep unsold companies in limbo, making SpaceX's public debut all the more significant as a bellwether for capital markets.