SpaceX Stock Just Crashed — Here's Why

The NASDAQ 100 shed over a trillion dollars in two days, chip stocks dropped 8% in a single session, and SpaceX — the most anticipated tech IPO in years — saw its stock fall roughly 20% in three days after announcing a $25 billion bond offering to finance its AI operations. The sell-off went global: South Korea's KOSPI fell 10% from near-record highs. On this episode of Prof G Markets, host Ed Elson and guest Gil Luria, head of technology research at DA Davidson, unpacked what's driving the volatility, why SpaceX's drawdown may only be the beginning, and what the data actually says about raising the minimum wage.

The Tech Sell-Off: Volatility, Not Collapse

Gil Luria characterized the sell-off not as a fundamental breakdown but as extreme volatility driven by unusually wide dispersion in possible outcomes. "If AI goes well, GDP in the US may grow 5% next year. If AI rolls over and the cycle is over, GDP may only increase by 1 or 2% next year," Luria said. "Usually we're trying to figure out if GDP is gonna go 2.8 or 3.2. Right now, the range of outcomes is really big." Any news that makes investors more optimistic about AI sends semiconductor stocks running; any hint that the cycle may be peaking triggers sharp corrections.