Market Hypoxia: Tech Selloff and the SpaceX Index Gatekeeping
The US labor market remains surprisingly resilient, even as financial systems show signs of altitude sickness. When markets ascend too far too fast, liquidity begins to thin and valuations reach rarefied levels where the smallest shift in expectations can trigger a rapid descent. This state of market hypoxia was visible on Friday as a massive tech selloff collided with new data on US non farm payrolls. While the real economy continues to expand, the gatekeepers of passive index funds are now preparing for one of the most consequential flotations in history: the SpaceX public offering.