Mega-IPOs from SpaceX and AI Giants Spark Market Crash Fears

A wave of supersized initial public offerings from the aerospace and artificial intelligence sectors has sparked a debate among economists regarding market stability. Mark Hulbert, a Wall Street analyst, predicts these mega-IPOs could trigger a severe bear market with a potential 40% drop in stock values. Hulbert argues that these listings drain liquidity from the broader market as investors sell blue-chip holdings to fund new positions.

Space Exploration Technologies Corp. launched the largest IPO in history on June 12, raising between $75 billion and $85.7 billion with a valuation exceeding $2 trillion. However, its shares recently fell 16% following an announcement that the company would sell investment-grade bonds. Simultaneously, AI leaders OpenAI and Anthropic have filed for US IPOs, both targeting valuations that could reach or exceed $1 trillion. In China, Unitree Robotics is seeking a 4.2 billion yuan valuation on the Shanghai Stock Exchange.

Other experts dispute the crash narrative. Robert R. Johnson of Economic Index Associates notes that these capital raises represent only a small fraction of the total US market capitalization, which was $79.4 trillion at the start of 2026. Additional analysts suggest that institutional dry powder and global capital markets may absorb these listings without destabilizing the economy.