A promising start for US equity markets has very quickly soured.
The Nasdaq is now lower after climbing 1% at the open
I highlighted Marvell as a barometer before the open and it climbed 3% to start but is now quickly down 6.5%. Nvidia also reversed lower and is down 1.2%. I think there is some angst about issuance and crowding-out in the stock market with OpenAI yesterday saying that it’s filed for an IPO, which could come in Q4.
In the shorter term, we get the IPO from SpaceX on Friday and there are indications that the interest at the $1.75 trillion valuation is tepid at best. Shares of Tesla are down 0.7% after opening higher on fears that SpaceX will draw dollars out of Elon’s most-famous company. It’s important to note that SpaceX is only selling 5% of the company via IPO but the fear is that as vesting and lockups expire, there will be steady selling pressure as long-time owners and employees look to turn equity into cash.