U.S. equities face an extreme stress test this week, coming off last Friday’s sharp selloff. The Nasdaq tumbled 4.2% and the S&P 500 fell 2.6%, ending the week with losses of 4.7% and 2.6% respectively. Rather than a reprieve, markets are hit by a barrage of key events within five trading days: SpaceX’s landmark IPO, Oracle’s earnings release, fresh inflation figures and escalating Middle East tensions.

SpaceX Set for Record $1.77T IPO on Friday

Elon Musk’s SpaceX is slated to debut on the Nasdaq this Friday under ticker SPCX. Priced at $135 per share, the company is valued at $1.77 trillion and aims to raise $750 billion, setting new all-time highs for global IPOs.

Goldman Sachs leads the underwriting syndicate, alongside Morgan Stanley, BofA, Citi and JPMorgan. In an unusual move for U.S. IPOs, SpaceX locked in a fixed offering price after multiple pre-roadshow sessions, ditching the standard process of setting a price range ahead of investor tours.

Notably, 30% of the offering is allocated to retail investors, three times the average level for mega-sized IPOs. Following the listing, Musk will hold over 82% of voting rights, retaining full control over corporate strategy.

Valuation remains highly contentious. Based on 2025 revenue of $18.67 billion, the $1.77 trillion valuation translates to a price-to-sales ratio above 90x. Franco Granda, senior analyst at PitchBook, believes a fair valuation stands at $1.5 trillion, with the remainder stemming from hype around space and AI themes, plus the so-called "Musk premium".

Middle East Flare-Up Pushes Oil Higher

Markets were still digesting last week’s payroll data when geopolitical tensions flared across the Middle East over the weekend.

Late local time on June 7, Iran launched around 10 ballistic missiles at northern Israel, marking its first direct strike on Israeli territory since the April ceasefire. The attack came after Israel carried out large-scale air raids on southern Beirut, and Israel has pledged a strong response.

Brent crude surged 3.6% to $96.47 per barrel on the news. Trump received briefings on the escalation and said the missile attacks hampered diplomatic efforts. He urged Iran to re-engage in talks: “You have launched the missiles. It is time to return to the negotiating table and reach an agreement.”

The already fragile U.S.-Iran negotiations now face dimmer prospects. A near-term reopening of the Strait of Hormuz looks increasingly unlikely, which will keep oil prices elevated.

Inflation Data in Focus: May CPI Seen Rising to 4.2%

Wednesday’s May CPI report stands out as the week’s most influential release. Last Friday’s payroll data solidified views of a strong labor market, and the CPI report will put price stability — the Fed’s other core mandate — under the spotlight.

Economists forecast headline CPI to rise 4.2% year-on-year in May, up from 3.8% in April. Core CPI is expected to climb from 2.8% to 2.9%, signaling inflation pressures are spreading well beyond the energy sector.

Thursday’s PPI data also warrants close attention. April’s PPI jumped to 6.0% year-on-year, the highest reading since December 2022, while May’s figure is projected to rise further to 6.8%.

Markets have fully priced in at least one 25-basis-point rate hike by year-end. Hotter-than-expected inflation data will further reinforce such bets.

Oracle Earnings: AI Capital Spending in the Spotlight

Oracle will publish its fiscal fourth-quarter results after Wednesday’s closing bell. The earnings report is not only a key check on the company’s performance, but also a vital barometer for AI and cloud investment trends.

BNP Paribas expects Oracle to lift its capital expenditure guidance once again. The firm has raised fiscal 2026 capex to $50 billion**、、, doubling the initial plan of **$25 billion. Its heavy investments in GPU infrastructure and data centers are designed to meet robust cloud computing demand from clients including Nvidia, Meta and OpenAI.

Investors want proof, not promises. They are looking beyond headline earnings beats, focusing on whether cloud business growth can translate into sustained order backlogs and improved profit margins. Disappointing results could trigger steep price swings. The stock has lost half its value since hitting its peak in September 2025, wiping out roughly $460 billion in market capitalization.

Nasdaq posted a near 5% decline last week, leaving market sentiment extremely fragile. With five major catalysts due this week, investors are weighing three key questions: Are inflation pressures broadening? Can the AI investment story sustain momentum? And how will the world’s largest IPO impact market liquidity? Answers will emerge day by day throughout the week.