Markets Ready for SpaceX IPO, Proposals for Prediction Markets, and The Big Business of the Knicks 6/10/26

**SPEAKER_1** (0:00)
Your data lives everywhere, on-prem, in the cloud, across apps. Bring it all together with Everpure, the platform that acts like a living system, delivering the latest in data performance, security and innovation without ever slowing you down. Sophisticated enough to anticipate your ever-changing data needs, yet simple enough to feel like second nature. Tame your data chaos with Everpure and make storage and data management the simplest part of your business. Visit everpuredata.com to learn more.

**SPEAKER_2** (0:27)
This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com/marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts.

**Kelly Evans** (0:59)
Thank you very much, Frank. Stocks are under pressure again as the chips sell off and the president says the US will resume attacks on Iran later today. We also got that high CPI report this morning, a little better than expected, but still the highest since 2023 All of that putting pressure on stocks. Crude prices are a little bit higher, so are bond yields. Welcome to The Exchange, by the way. I'm Kelly Evans. We have a failed come back in the semi-trade. That's part of what's weighing on the tech space. The chip and memory stocks are selling off again. Micron down about 4%, Nvidia down 2.5%. Big tech mostly lower as well, although Apple's a standout there. Tesla is a big laggard with 3% drop. BYD domination headlines not helping there. And of course, this all comes as investors sold a record $10 billion in tech stocks last week, according to Bank of America, with outflows as a percent of the tech sector market cap the highest in 12 years. So are investors throwing in the towel on what's been one of the greatest trades in history? Let's ask Michael Sansaterra, the Chief Investment Officer of Sylvent Capital Management and CNBC contributor Sarat Setti, who is managing partner and portfolio manager at DCLA, here for our opening exchange. Welcome to both of you. Michael, what do you say to those who are looking at the size of tech in terms of the broader market, the changes that AI is reeking on the MAG-7 and saying, I'm walking away?

**Michael Sansaterra** (2:22)
I think there's a little bit of fear. It creeps into the market when the market does well, and let's face it, the market's done well year to date, and for the last three years.
I think part of it too is if you look at the all-time highs that we were hitting just less than two weeks ago, you're always going to see some consolidation in some of the winners. So not particularly noticeable or problematic for us, although I can understand people taking profits. We've got stocks that are up to 300, 400% over the last few years. Why not? At the same time, don't forget, there are also 1,000 growth index where most of the investors who've really taken advantage of these types of trades for the last few years is rebalancing at the end of the month. And you are seeing some of the larger weighted names, Apple, Alphabet and Microsoft, I'm sorry, Amazon and Microsoft, all coming down in size. So you might see a little bit of the index rebalancing in advance of the quarter. Maybe the value folks aren't quite yet stepping in, but it feels pretty natural to us. I don't think there's any panic happening at this point.
I think it's part of the order of the market at this moment.

**Kelly Evans** (3:25)
So Gary Cohn was on earlier, Michael, and he said he's not sure you can even use the term MEG-7 and really have that mean anything anymore. And the end of that acronym is more than that. I mean, it implies the end of that trade. And no one's sure yet if the rise of OpenAI and Anthropic and maybe SpaceX help sort of take those tech leaders to the new leadership of the market or actually if it drags everybody down and kind of does a big reset where people go elsewhere and look for bigger gains.

**Michael Sansaterra** (3:54)
Yeah, hard to say obviously, but I think it's healthy for the market as we see some of these large players, particularly for the ones that are generating real revenue, like those big three, added to the space, that's a healthy thing. We want to get them in the public markets, give them a chance to really be analyzed, be understood. There will be winners and losers in every fight, and we want to know how strong are they really? And that will come with a lot more disclosure, a lot more management commentary, and that comes over time. So ultimately, long term, it makes perfect sense. It's healthy.