SpaceX reported a $4.3 billion loss as CEO Elon Musk presses ahead with plans for what would be the world’s largest initial public offering, underscoring heavy upfront spending on Starship and satellite ambitions even as the company eyes public markets.
Macro signals added to market unease. Eurozone business activity contracted at the fastest clip since 2023, with the S&P Global composite PMI sliding to 47.5 in May from 48.8 in April — the second straight month below the 50 expansion threshold — as the war in Iran drags on and lifts inflation fears that threaten growth.
Geopolitics intensified elsewhere: China warned the European Union it would retaliate if Brussels presses ahead with tough trade curbs, heightening the risk of new trade friction between the bloc and Beijing. At the same time, Iranian officials said a recent U.S. proposal had narrowed some gaps, helping fuel a risk rally that sent stocks higher and pushed oil down as much as 3% on Wednesday.
Currency moves were uneven. The Indian rupee led gains across Asian currencies after New Delhi stepped up measures to stabilise the unit, reflecting targeted policy action to calm markets.
Market internals were mixed into the close. European and Chinese equities fell about 1% on average, while U.S. futures pointed to a softer open, down roughly 0.5% on average. Oil rebounded, with Brent crude trading about 2% higher near $107 a barrel, as investors balanced hopes for a diplomatic thaw against persistent supply‑risk concerns.
Investors will be watching whether SpaceX’s loss trajectory and heavy capex plans dent appetite for tech IPOs, and how evolving Iran talks and trade tensions between China and the EU shape inflation, rates and growth expectations in the weeks ahead.