Keep pulling the thread on Bloomberg Surveillance.
The market is pricing the recent 4.2% year-over-year CPI print as the peak inflation reading for the current economic cycle.
SpaceX's business pitch involves creating a large-scale satellite constellation where each satellite functions as an orbital data center.
Institutional investors and long-only asset managers have placed orders for approximately $10 billion worth of shares in the SpaceX IPO.
The SpaceX IPO prospectus outlines a timeline to deploy an orbital data center between 2028 and 2029.
Bankers and representatives for SpaceX have informed key investors that a demonstration of its orbital data center technology could be pulled forward to 2027.
The strategic thesis for SpaceX's orbital data centers is that Tesla will become its first major customer, using the space-based compute for its robotaxi fleet's AI inference needs.
SpaceX initially priced its IPO at $135 per share, for a total valuation of $1.77 trillion.
The SpaceX IPO is massively oversubscribed, indicating high investor demand.
Investors believe the recent sell-off in semiconductor stocks is a short-term correction, while the long-term outlook for the sector remains positive.
European investors, particularly in London and Zurich, are actively seeking to diversify their portfolios beyond semiconductor and AI-themed stocks.
Economic fundamentals supporting small-cap stocks are strong, with re-accelerating jobs growth and the ISM index remaining above 50 for several consecutive months.
Since 2022, expectations of Federal Reserve interest rate hikes or a less dovish monetary policy have consistently hindered the performance of small-cap stocks.