Markets Weekly May 23, 2026

Joseph Wang discusses rising geopolitical risks, the Fed's increasingly hawkish stance with inflation above 4%, and the implications of the massive SpaceX IPO. He highlights that the market is pricing in a rate hike and that increased equity supply from major IPOs could act as headwinds for financial assets. - Geopolitical tensions with Iran and Cuba are highlighted as potential market-moving events. - The Fed is turning hawkish; the market now prices in one rate hike this year. - Inflation forecasts from the Cleveland Fed show CPI/PCE above 4%. - Longer-term inflation expectations remain benign per the 5y5y forward. - SpaceX IPO is expected to be the largest ever, with a $1.5-2 trillion valuation. - SpaceX loses money ($4B loss on $20B revenue) but has a vast TAM pitch. - Massive equity supply from SpaceX, OpenAI, and Anthropic could pressure markets. - Joseph Wang reiterates that leverage and momentum, not earnings, drive markets.