Hot jobs data and a landmark $1.77 trillion SpaceX IPO heighten Fed rate hike risks amid tech sector volatility.
Markets face a critical test this week as SpaceX debuts on public markets with a $1.77 trillion valuation, compounding uncertainty over Fed policy under new Chair Kevin Warsh. Stronger-than-expected jobs data has lifted odds of a near-term rate hike, pressuring bond yields and equities.
The S&P 500 entered the week on shaky footing after Friday’s semiconductor-driven sell-off, though diversified portfolios mitigated losses. While the jobs report bolsters hawkish bets, AI-driven productivity gains could counter inflationary pressures, leaving the Fed’s next move unclear.
Investors are weighing the interplay between looming IPOs, including OpenAI and Anthropic, and macroeconomic signals. The outcome may define the trajectory of the so-called Trump bull market amid shifting rate expectations.