Market Meltdown Deepens: $1.8 Trillion Loss as SpaceX, OpenAI, Anthropic, and Perplexity Rally Under Pressure

Last Friday, June 5, the U.S. stock market had its worst single session since October 2025. The selling did not stop there. Monday and Tuesday brought more losses, a geopolitical shock, and an IPO that priced through all of it.  This week inside:

• The Nasdaq had its worst point drop ever. The losses continued for four more days.

• Are funds selling your stocks to make room for the IPO?

• Three unprofitable companies. Combined ask: $200 billion.

• Is this 1999 again, or is AI different this time?

That tension is not an accident. It is the story this week.

Market Mood Snapshot

The Scorecard for the Week of June 5 to June 10, 2026

The S&P 500 fell 200.57 points, or 2.64 percent, closing at 7,383.74. That ended a nine-week winning streak. The Nasdaq dropped 1,121 points, or 4.18 percent, to 25,709.43. That was its biggest single-day point decline in history. The Dow Jones fell 695 points, closing at 50,866.78, just one day after setting a record high.

The broad market mood shifted from cautious optimism to genuine unease through Tuesday. Rate-hike fears returned. Technology stocks absorbed the majority of the damage. The market mood this week was cautious, reactive, and highly sensitive to geopolitical signals.  

2-Minute Weekly Brief

Five Things That Moved Markets This Week

• Broadcom missed AI chip guidance: The company did not raise its AI revenue outlook. Investors had been pricing in stronger guidance. The chip sector began selling off immediately, with Broadcom falling 3.8 percent on the day.

• May's jobs report more than doubled forecasts: The U.S. economy added 172,000 jobs against a consensus estimate of 80,000. Strong labour data reduces the Fed’s incentive to cut rates, and in this market, that is not welcome news for growth stocks.

• Treasury yields crossed key thresholds: The 10-year yield moved back above 4.5 percent, and the 30-year crossed 5 percent. Higher yields raise the discount rate on future earnings, directly compressing valuations for long-duration technology stocks.

• Chipmakers absorbed over $1 trillion in losses: NVIDIA fell 6.2 percent (-$330 billion). Marvell dropped 16 percent, Micron 13 percent, and AMD 11 percent. The Philadelphia Semiconductor Index recorded its worst single-day percentage decline since March 2020.

• Broader tech and consumer names followed: Meta fell 5.5 percent, Coinbase 7.1 percent, and Lululemon 8.6 percent after cutting its own full-year guidance. The selling was broad and reflected a market recalibrating risk across the board, not just semiconductors.

• Iran tensions added a second layer: Trump hinted at an Iran deal, then threatened fresh strikes the same day. Chip stocks gave up Monday's rebound. Two headwinds now: rates and geopolitics.

Money Minute 💡

One-Minute Finance Lesson

Oil price shocks often act like a hidden tax on the economy. When oil rises, transport and production costs increase, and prices slowly spread through goods and services. This is called cost-push inflation. It matters because it can delay interest rate cuts even when growth is slowing.

One takeaway: Oil does not just move energy markets; it quietly reshapes monetary policy.

Noise vs Signal

Separating the Real Concern from the Reaction

Is this a crash, or is the market just adjusting?

The headlines called it the worst day in history for the Nasdaq. That is technically correct on a point basis. But markets are also near all-time highs, which means point drops look larger in absolute terms even when the percentage move is comparable to past corrections.

The S&P 500 is still up roughly 7.9 percent year-to-date through the week before the selloff. One bad week does not undo that.

The real signal to watch is not the point drop. It is the reason behind it. The 10-year Treasury yield crossing 4.5 percent changes the math for every long-duration growth stock. When the discount rate rises, the present value of future earnings falls. That is not panic. That is arithmetic.

A second signal matters more: the market rally of the past two months was narrow. A small group of mega-cap technology names drove most of the gains. When those names sell, the index falls hard. That concentration risk was always there. This week, it showed up.

Mark Your Calendar: The May CPI report lands mid-week, and with oil elevated from the Iran conflict and the jobs market running hot, one bad inflation print could settle the rate-hike debate for the rest of the summer.

Short-term headlines have focused heavily on the idea of an immediate and total oil supply disruption. Media narratives have also amplified the notion of a direct geopolitical escalation between major powers.

What Most Missed

The Bigger Story Behind the Selloff

Why are funds selling before any IPO has even been priced?

The selloff on June 5 did not happen in isolation. Institutional investors, including large mutual funds and passive index funds, have been building cash positions ahead of the SpaceX listing. Reuters confirmed this in its coverage. When a company the size of SpaceX enters the market, portfolio managers need to make room.

Goldman Sachs projects that SpaceX, OpenAI, and Anthropic together could add roughly $4 trillion in combined market value and raise over $200 billion in capital. For context, Goldman had projected that the entire U.S. IPO market for 2026 would raise around $160 billion in total. These three companies, in a matter of months, are asking for more than that on their own.

Bloomberg Intelligence estimates the trio will miss approximately $27 billion in forced passive buying because S&P Dow Jones Indices declined to fast-track their index inclusion. The standard 12-month seasoning and profitability requirements still apply. That is a meaningful technical detail. It means index funds will not be compelled to buy at listing.

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One Chart, One Story

Three Companies, One Question: What are Markets Actually Buying?

What this table shows is straightforward. These are not companies being valued on current earnings. They are being valued on the assumption that AI will become the central infrastructure for the global economy. That may prove correct. But Morningstar published an independent fair-value estimate for SpaceX near $780 billion, and valuation professor Aswath Damodaran placed it around $1.3 trillion. The offer price of $135 per share implies $1.75 trillion. Investors are paying well above those estimates.

Opportunity Lens

Where Does the Actual Opportunity Sit?

Is the IPO itself the opportunity, or is something else?

SpaceX was priced at $135 per share on June 11. It was listed on Nasdaq as SPCX on June 12. At that price, the company trades at roughly 94 times its 2025 annual revenue. NVIDIA, the most valued chipmaker in the world at nearly $5 trillion, trades at around 37 times forward earnings. The gap is notable.

John Blank, chief equity strategist at Zacks, told CNBC on May 22 that he views this as a market top. His reference point was 1999, when a rush of large, unprofitable technology listings preceded a significant correction. That comparison is not alarmist. It is a reasonable historical observation.

The counterargument is that AI may genuinely rewrite the productivity frameworks that underpin conventional valuation. If Starlink reaches 50 million subscribers and xAI becomes a dominant enterprise platform, the revenue trajectory changes materially. SpaceX itself cites a total addressable market of $28.5 trillion. Whether that figure is achievable is a separate debate.

The more practical opportunity may not be in the IPO itself. Stocks in AI infrastructure, such as 

the companies supplying data centre capacity, power, networking, and cooling, have stronger near-term cash flows and more defensible valuations. The IPO wave does not change AI demand. It changes who owns the story.

Perplexity offers a different lesson. The company has raised approximately $900 million in total capital. OpenAI raised $122 billion in a single round. Perplexity's CEO, Aravind Srinivas, confirmed to CNBC on June 9 that the company remains committed to a 2028 IPO timeline regardless of how this week's listings perform. Staying lean and waiting for the market to absorb the first wave is a legitimate strategy.

Investor Mind Gym

One Concept Worth Understanding This Week: IPO Overhang

When a very large company approaches a public listing, institutional investors begin selling existing holdings to raise cash. This selling pressure on current market positions, before the new listing even begins trading, is called IPO overhang.

It is not speculation. Reuters confirmed that large mutual and passive index funds were actively building cash reserves ahead of the SpaceX listing. When that happens across enough funds simultaneously, existing market leaders absorb the selling. That is a mechanical explanation for part of what happened on June 5.

The important nuance is this: IPO overhang is temporary. Once the allocation settles and the new company begins trading, that selling pressure resolves. The underlying companies being sold are not necessarily weaker. They are being sold for liquidity reasons, not fundamental ones.

For investors, the practical implication is to distinguish between selling that reflects a change in business fundamentals and selling that reflects portfolio rebalancing. This week leaned heavily toward the latter.

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Ask Meyka: This Week's Question for You

SpaceX lists this Thursday at $135 per share, implying a $1.75 trillion valuation. The company lost $4.94 billion in 2025. Independent analysts value it between $780 billion and $1.3 trillion. 

Would you buy in at the IPO price, wait for the market to find its level, or sit this one out entirely? And more importantly, what would change your mind? 

Think it through, we'll be back next week.

Meyka Team

Disclaimer: 

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.