The Fractured Tech Trade, Memory Momentum, and remembering Alan Greenspan 6/22/26

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**Kelly Evans** (1:02)
Thank you very much, Scott, and welcome to The Exchange. I'm Kelly Evans, and as you can see, the markets are running out of steam somewhat today, although the Dow is higher. As the tech trade becomes more fractured, Caterpillar's helping the 210-point gain we see for the Dow. The small caps are up as well, but the S&P's down a third of 1%.
The Nasdaq is down more than 1%, and Alphabet's having its worst day in a year. We'll have more on that in a moment. We are still seeing gains in the chip and memory space. The SOX index up 1% in 13 of the last 21 trading days. Sandisk right now up 5% today is the most overbought stock in history, according to Oppenheimer. But as mentioned, the Mag 7 names are slipping, and the trade that defined last decade continues to fall apart, with every name down for the month. Take a look at Google, down about 6%.
It was down 7 at the lows. That's a big shift from when the Mag 7 drove the market, and outperformed the S&P in every positive year since 2015
Software, by the way, is not catching a bid either. Quick look at the IGV is off 13% for the month. On top of all of that, SpaceX, not giving the bulls much to cheer about, off 10% today, down three days straight. It hit a high of 225 last week, and is back to 165
That's where we begin today, with the company reportedly exploring a $20 billion bond sale. Sima Modi is here with more of what we know. Sima, normally, new companies don't do bond sales, but this company's a big one, and it's been changing so much of what we think we know about IPOs.

**Sima Modi** (2:28)
Yeah, the speed at which it's going towards this bond sale is pretty unprecedented. Here's the latest, Kelly. What we're hearing, according to two bankers we spoke to, is that SpaceX is exploring the prospect of this mega bond sale that could kick off as early as tomorrow, reportedly raising as much as $20 billion.
Late last week, SpaceX received investment grade credit ratings from the top three agencies, S&P, Moody's and Fitch, all three agencies citing several strengths that SpaceX has, including profits that it derives from Starlink's satellite network and its reusable rocket technology, but also noting a few risks, including that Elon Musk's control and the capital-intensive nature of SpaceX's many businesses like XAI, in fact, standard in pores, flagging its AI bet as the riskiest of the three business segments due to its massive upfront investments and the unclear monetization path. Investors see this bond sale as one way to continue funding SpaceX's goal to buy more chips, compute and invest in its large-language model Grok, which faces fierce competition from the likes of OpenAI and Anthropic. If SpaceX is able to raise 20 billion, it would come less than two weeks after securing over $75 billion in its initial public offering. There are fixed income calls, we're told, between management and investors right now, which would imply we could see this bond sale happen as early tomorrow. Just as we watched the stock, Kelly, fall now by around 25% from the high it hit up to 25 a share.

**Kelly Evans** (3:50)
What else are you hearing about the declines that, look, name this volatile, this large, this unprecedented, it just can't keep going up. But what are you hearing about this reset?

**Sima Modi** (4:00)
Two things I would say. First, nearly every technology company has tapped the bond market to raise funds to fund the AI buildout. It's capital intensive. You took a look at NVIDIA last week with a $25 billion bond sale, Google, Meta, Amazon as well. So this is certainly not unique. The timing actually you could say is very good because there's a lot of interest right now in getting exposure to the AI infrastructure trade, whether it's equity or debt. However, as we've also seen with other high profile IPOs that see that big one day pop Kelly, the three to six months and six month performance, these stocks tend to underperform. And I also think back to the day the company went public when we were on the ground and I spoke to a select group of SpaceX employees who had shared, they're now worth a lot more on paper and that when that first lockup expiration comes at the end of August, early September, they're looking to sell a little bit.