Key Takeaways
- SpaceX (SPCX) IPO demand has exceeded available shares for its historic $75 billion offering, with retail investors expected to secure up to 30% of the allocation.
- Fitch Ratings forecasts a global oil oversupply starting September 2026, as supply is projected to outpace demand following the expected reopening of the Strait of Hormuz.
- U.S. nonfarm payrolls added 172,000 jobs in May, far exceeding the 85,000 forecast, yet markets fell as investors priced in a higher probability of a December rate hike.
- China’s Foreign Ministry strongly condemned new U.S. sanctions against Cuban President Miguel Díaz-Canel, urging an immediate end to the blockade and "coercive measures."
SpaceX IPO Sees Massive Oversubscription
The highly anticipated initial public offering of Elon Musk’s SpaceX (SPCX) has reportedly drawn more orders than shares available. The company is seeking to raise $75 billion at a staggering $1.75 trillion valuation, which would make it one of the largest market debuts in history.
In an unusual move for a megacap IPO, SpaceX is targeting significant retail participation, with analysts noting that up to $23 billion in shares could be allocated to individual investors. Major brokerages, including Fidelity and Robinhood, have lowered entry barriers to allow customers with as little as $2,000 to participate. Pricing for the IPO is expected on June 11, with trading slated to begin on the Nasdaq on June 12.
Fitch Warns of Looming Oil Oversupply
Fitch Ratings issued a report Friday projecting that the global oil market will return to a state of oversupply beginning in September 2026. The agency expects global supply to exceed demand for the year on average, driven by a rapid production recovery in the Middle East and strong non-OPEC growth.
The forecast assumes the Strait of Hormuz will reopen by the end of July 2026 after a five-month closure, potentially creating a market surplus of 4 million barrels per day (mmbpd) by the fourth quarter. While Fitch raised its average Brent crude forecast for 2026 to $87 per barrel, it warned that prices could fall sharply once the logistical supply shock subsides. Major energy players like ExxonMobil (XOM) and Chevron (CVX) are monitoring these shifts closely as production quotas remain a key variable.
Trump Critiques Market Slump Following Jobs Beat
President Donald Trump took to social media to criticize the negative market reaction following a stronger-than-expected jobs report. The Bureau of Labor Statistics reported that the U.S. added 172,000 jobs in May, nearly double the consensus estimate of 85,000. Despite the growth, the S&P 500 dropped 0.9% and the Nasdaq fell 1.6% as Treasury yields spiked.
"With a great Jobs Report, like just announced, stocks should go up, not down," Trump wrote, arguing that "Growth does not mean inflation!" However, traders have now fully priced in a quarter-point Federal Reserve rate hike by year-end, fearing that a resilient labor market will force the Fed to maintain tighter policy. High-growth tech stocks felt the brunt of the sell-off, with Nvidia (NVDA) falling 3.8% and Tesla (TSLA) dropping 3.5%.
China Slams U.S. Sanctions on Cuban Leadership
Geopolitical tensions escalated as the China Foreign Ministry issued a stern rebuke of the latest U.S. sanctions targeting Cuban President Miguel Díaz-Canel and his family. Chinese spokesperson Mao Ning stated that China "firmly opposes" what it described as "hegemonic and domineering behavior" by the United States.
The U.S. Treasury Department added Díaz-Canel and several entities, including the Ministry of the Revolutionary Armed Forces, to its sanctions list on Thursday. China urged Washington to immediately cease its blockade and any form of coercion against Cuba, reaffirming its support for Cuban sovereignty. The move comes as the U.S. administration considers shifting its foreign policy focus toward the Caribbean following recent developments in the Middle East.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.