$2 TRILLION HAS BEEN WIPED OUT FROM THE US STOCK MARKET IN THE LAST 2 HOURS.
Two possible reasons behind the selloff.
THE FIRST REASON IS SPACEX ( $SPCX )
SpaceX lists on June 12 at a $1.77 trillion valuation, raising $75 billion in the largest IPO in US history.
SpaceX allocated 30% of shares to retail investors, far above the industry norm.
Many investors still did not receive full allocations. To buy more shares when trading begins, they are selling existing positions to raise cash.
SpaceX will enter the Nasdaq 100 just 15 trading days after listing, creating an estimated $22-$27 billion in forced buying from index funds.
To make room, existing Nasdaq 100 stocks will be trimmed.
MSCI has also adopted early inclusion rules, adding even more future demand for SpaceX shares.
Both retail and institutions are raising cash at the same time, creating selling pressure across the market.
The second reason is insider positioning ahead of major news.
When institutions sell aggressively across multiple asset classes at once, it can signal they are preparing for something the broader market has not yet priced in.
