Buried in SpaceX’s IPO: a Tesla merger clue and a $3.75 billion insider windfall for friends and family

Good morning. On Fortune’s radar today:

Elon Musk is planning a $3.75 billion windfall for SpaceX insiders.

Markets: Global selloff as traders cash out of tech stocks.

Ray Dalio: Yes, AI is a bubble. Get used to it.

Tomorrow’s jobs report could force the Fed to raise interest rates.

Trump signals restraint in Iran war.

We have a theory about the mysterious men sneaking in and out of New York’s sewers in the middle of the night.

A nine-day winning streak meets the sell button

S&P 500 futures were down 0.44% this morning. The index declined 0.74% yesterday after nine straight sessions of gains. 

In Europe, the Stoxx 600 was flat in early trading and the U.K.’s FTSE 100 was down 0.51% before lunch.

Asia: South Korea’s KOSPI was down 1.84%. Japan’s Nikkei 225 was down 1.36%. India’s Nifty 50 was up 0.18%. China’s CSI 300 was down 0.69%. 

Brent crude was down to $96 per barrel this morning.

Bitcoin sank to $63K.

No good deed goes unpunished: The Magnificent 7 were down 1.25% at the close. Broadcom fared even worse. It lost 12.8% in overnight trading after reporting revenues that were a smidge below expectations, and after CEO Hock Tan didn’t raise his guidance for future AI chip sales. To put that in context, investors punished the company despite the fact that revenue was up 48% to $15 billion from the prior year, and its stock is up 38.47% for the year.

Why does the S&P 500 keep hitting new highs? Because of strong fundamentals. Revenues across the index rose 6.3% annually and earnings grew 26% in Q1, according to Ronnie Walker at Goldman Sachs.

“FEMO”: Ed Yardeni and Toby Hearst of Yardeni Research have a word for this: FEMO, which stands for “fabulous earnings momentum.” They’re still bullish: “On May 10, we raised our year-end target for the S&P 500 from 7,700 to 8,250. We are sticking with it.”

Increased “uncertainty”: Paul Donovan at UBS hit Command F on the latest from the Fed. “The Federal Reserve Beige Book’s summary of economic anecdote mentioned ‘uncertain’ and ‘uncertainty’ no fewer than 50 times this month (before tariffs were announced). That is below the uncertainty peak that followed last year’s tariffs, but well above the 14 mentions in May 2024. Uncertainty has a paralyzing effect on business decisions—and the risk is that uncertainty endures.”

SpaceX IPO docs suggest merger with Tesla and a $4 billion windfall for insiders

There is a new sentence in SpaceX’s amended IPO filing which gives a strong clue to Elon Musk’s plan for the company. The line says that the company “may issue a significant amount of equity in connection with future transactions.” Aside from the obvious shareholder dilution that might entail, it seems to be suggesting that SpaceX........

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