SpaceX’s IPO Has Wall Street Worried

Wall Street is worried about an AI bubble as SpaceX readies its massive IPO this week. Maybe regular people should be concerned?

A new report from Fortune crystalizes those concerns for the larger masses. They said that investors were selling off stocks this morning as oil prices rose and strikes between Israel and Iran fly again. 

If all of that weren’t enough to contend with, semiconductor stocks took a tumble in the early going as well. Fortune says the VIX fear index has risen about 24% in the last five days. So, there’s a sense of growing unease among investors.

SpaceX’s big day is scheduled for Friday. And, while there was some positive momentum for the Dow and some other corners of trading. But, that cannot outweigh the general feeling around the Musk-branded stock’s growing importance to the financial climate of the United States. 

Unless you’ve been living under a rock, you can see that there have been some massive bets the US has made on AI. The government has basically given the entire corner of tech the green light to do whatever they want.

There’s also the sterling fact that capital forces Have to own their entire weight AI and all of its forms. Someone clearly told all of these rich people that this was a get rich quick scheme magic elixir that would only improve their lot in life.

 And, if it all goes kaput, guess who will be holding the bag?

AI Bubble concerns intesify as SpaceX IPO draws close

A big piece of “evidence” that AI-hopefuls point to is the job growth numbers being better than anticipated this week. But, previous experience both in this country and in the calendar year might lead to some skepticism on that front.

Fortune’s conversation with ING’s James Smith helps illuminate how bizarre the current structure of the stock market is in America right now. Essentially the entire thing is inextricably wrapped-up in AI and that’s going to stoke consistent concern. 

“The circularity [of the AI economy] is attracting more attention: the same handful of firms raising money, buying chips, leasing computers, and booking revenues off one another. That may not spell disaster,” Smith explained. “But, the fact remains that if you strip out AI, the rest of U.S. private non-residential investment has been falling year-on-year for six straight quarters.” 

 Listen, he’s not wrong. And it’s not just because AI has ruined home computing, video game consoles, social media through deep fakes and fake news exploding, or the idea that AI has spawned all of these layoffs across multiple industries.

 Instead, what we have is the simple fact that you’ve hitched your wagon to one industry over all others. One prone to the kind of volatility we haven’t seen in a century period now, with a house of cards already established, People paying attention wonder if a strong wind will blow through and wreak havoc on not just the investment side of things, but general life in the United States as well.

Is it any wonder that the nerves are starting to show for more people than they did 6 months ago. Bubbles exist for one reason, to pop.

(featured image: Gage Skidmore)

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