SpaceX Extends Its Explosive Post-IPO Rally
SpaceX continued its remarkable run in its third day of public trading, with shares jumping another 4.8%. That move pushed the company's market value up to $2.7 trillion. The climb was dramatic enough that, at one point during the session, SpaceX briefly surpassed both Amazon and Microsoft in market capitalization, as investors continued to pile into Elon Musk's combined space and AI enterprise. By the close, however, the stock had fallen back just below both of those companies.
Analysts attribute the surge to several converging forces: intense demand from options traders, strong institutional interest, and expectations that the stock will eventually be included in major market indexes — all key drivers of the move. Yet there is a growing chorus of caution. Some observers warn that the valuation has become increasingly difficult to justify on the basis of current fundamentals. The numbers underscore the tension: SpaceX generated just under $19 billion in revenue last year while posting a loss of nearly $5 billion. Despite that loss, the company has rapidly ascended to become one of the most valuable corporations in the world.
Oil Prices Slide to Three-Month Lows on US-Iran Peace Framework
Oil markets remained reactive to the emerging US-Iran peace framework, with crude prices dropping to three-month lows. The decline reflects a bet by investors that the Strait of Hormuz will reopen soon and that Iranian oil exports will flow back into global markets. Reports suggest the agreement could permit Iran to resume oil sales immediately once the deal is finalized — a prospect that eases the supply-shortage concerns that had pushed prices higher earlier in the year.
Despite this optimism, shipping companies remain cautious. They warn that tanker traffic through the strait may take weeks, or potentially even months, to normalize. Insurers, vessel operators, and traders are all holding back, waiting for clearer security conditions and operational details before resuming normal activity. In short, the market is clearly pricing in both peace and a reopening, but the real test will be whether oil flows can actually return to pre-conflict levels in the months ahead.
Carvana Pushes Beyond Used Cars into the New Car Market
A notable corporate development came from Carvana, which is making a major push beyond its traditional used car business and into the new car market. The company has quietly acquired seven Stellantis dealerships and is applying its online, no-haggle sales model to brands including Jeep, Ram, Dodge, and Chrysler.
Early results suggest the strategy is working. One Arizona dealership reportedly saw its monthly sales jump from roughly 30 to 50 vehicles up to about 350 vehicles under Carvana's ownership. The move is rattling traditional auto dealers, who fear that Carvana could leverage its nationwide online platform, transparent pricing, and home delivery model to capture share in a market that has long been dominated by local franchises.
For investors, the expansion opens a new growth avenue beyond used cars. At the same time, it raises questions about execution and margins — specifically, whether Carvana can successfully disrupt new car sales the same way it transformed the used car market.
Looking Ahead: The Fed Decision and a New Chair's First Test
Attention now turns to the upcoming FOMC meeting, which will also feature Kevin Walsh's first press conference at the helm of the Federal Reserve. The Fed is widely expected to leave interest rates unchanged, with the futures market pricing in a near-certain hold. Policymakers are weighing still-elevated inflation against a resilient labor market.
Investors, however, appear less focused on the rate decision itself and more on the surrounding signals: the first policy statement, the updated economic projections, and the press conference from the new Fed chair. Markets will be watching for any shift away from the Fed's previous easing bias, for updated forecasts on inflation and growth, and for clues about whether the next move is more likely to be a rate cut or a rate hike.
Perhaps even more important than the policy specifics, investors want to understand how Walsh plans to lead the Fed and whether the central bank will adopt a different approach to its communication policy going forward.
