SpaceX, OpenAI & Anthropic IPOs : a $3 Trillion Stress Test ↳
SpaceX at $1.6-2t would challenge Meta for spot #6, potentially slotting in behind Amazon. When they qualify, passive funds managing $20t must buy. Index funds can’t raise cash. They sell existing holdings. The mechanics become self-reinforcing. Index funds sell existing mega-caps to buy new entrants. Lower mega-cap prices trigger momentum strategies to sell further. Additional selling creates more pressure on the very stocks index funds track.