The Federal Reserve raised the federal funds target range by 25 basis points to 3.75%-4.00% on Wednesday, its first increase since July 2023, and the bond market answered by buying duration. The 10-year Treasury yield fell about 5 basis points to roughly 4.95%, one session after touching 5.04%, its highest level since 2007. In the first stretch after the statement the Nasdaq Composite traded up about 0.8%, the S&P 500 about 0.3%, and the Dow sat just under flat. A rate hike pulled the long end lower. That reaction is the story.

The May PCE report lands Thursday, and a week ago it would have been a non-event. The market’s working assumption was that the Fed would look through an energy-driven inflation spike caused by the Strait of Hormuz disruption, treat it as a supply shock, and keep its eyes on the back half of the year. That assumption is gone. Kevin Warsh took it apart at his first FOMC meeting on June 17, and the print now arrives into a reaction function that has been quietly rewired.

SpaceX confirmed on Tuesday that it will acquire Anysphere, the company behind the AI coding tool Cursor, in an all-stock transaction valuing the startup at $60 billion. The deal lands four trading days after SpaceX’s record-setting Nasdaq debut and formally exercises an acquisition option the rocket company secured back in April. SPCX shares ran nearly 9% higher in Tuesday’s premarket on the news, trading around $210 and extending an already-violent post-IPO rally.

On June 12, Space Exploration Technologies Corp. lists on the Nasdaq under the ticker SPCX. The offering is already oversubscribed. It is priced at a fixed $135 per share with no bookbuilding range — a deliberate break from convention that tells you the company believes demand exceeds anything price discovery would surface. SpaceX is selling roughly 555.6 million shares to raise $75 billion at a $1.75 trillion valuation, more than twice Saudi Aramco’s 2019 record and the largest IPO in market history by a wide margin. Morningstar’s independent fair value estimate is $780 billion. The 55% gap between those two numbers is not a footnote. It is the entire question, and on June 12 it stops being theoretical for everyone holding a Nasdaq index fund.