The Daily Wrap - June 3, 2026

Elon Musk's SpaceX is targeting a record-breaking $75 billion IPO, while the Trump administration has signed a new executive order to increase oversight of artificial intelligence, and Microsoft announced a breakthrough in quantum computing. Geopolitical tensions are escalating as fighting between the U.S. and Iran pushes oil prices higher, and fears of AI disruption are causing a sell-off in private credit stocks after a major fund received large redemption requests. On the corporate front, GameStop's stock surged on strong profits and a new $2 billion buyback program, Intel's shares rebounded after its CEO highlighted strong CPU demand, and the latest U.S. labor data presented a mixed economic picture.

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From Phinextra Pro in Tampa, it's Wednesday, June 3rd, and I'm Rachel Anderson with the Daily Wrap. Microsoft announced a major step forward in quantum computing. The company unveiled a new chip called Majorana 2, which it redesigned with the help of AI. Microsoft now believes it will have commercially useful quantum machines by 2029, putting it on the same timeline as Rival IBM. However, the company's claims, which are based on a novel approach using lead-based materials, continue to face skepticism from some physicists who are calling for more publicly available data. SpaceX is planning to raise a staggering $75 billion in its initial public offering by setting a fixed share price of $135 ahead of its marketing roadshow. This unconventional move for a US listing of this size targets a valuation of at least $1.8 trillion and is set to be the largest IPO in history. The deal comes as investors clamor for high-profile tech offerings, with AI rivals OpenAI and Anthropic also eyeing public listings. The president signed a new executive order yesterday aimed at increasing government oversight. The order asks AI companies to provide the administration with access to powerful models 30 days before their public release. The order reflects the administration's struggle to balance national security concerns with the desire to maintain America's competitive edge in technology. And in a related development, AI firm Anthropic announced it is expanding access to its powerful mythos model to more companies globally after previously facing security concerns from the White House. Intel stock jumped more than 5% today, snapping a five-day losing streak. The rally was sparked by comments from CEO Lip Bu Tan at the Computex conference in Taiwan, where he reminded investors of the powerful ongoing demand for the company's core CPUs, even as competitors like Nvidia make inroads into the PC market. GameStop shares are in focus after the retailer reported a higher first-quarter profit and a surge in sales driven by collectibles. The company also announced its board has approved a massive $2 billion stock buyback program. The strong results come just weeks after its $56 billion bid to take over eBay was rejected. Shares of major private credit managers like Blackstone, KKR, and Apollo all tumbled today. The sell-off was triggered by news that Cliffwater's flagship private credit fund received another wave of large redemption requests from investors. This has stoked fears across the $1.8 trillion industry as investors grow concerned that these funds are exposed to businesses that could be disrupted by artificial intelligence. On the economic front, the ADP report showed U.S. private payrolls increased by 122,000 in May, slightly more than expected. But economists are urging caution, noting that other indicators have weakened recently and that the ADP report has been a poor predictor of the government's more comprehensive jobs report, which is due out this Friday. Oil prices rose today as fighting flared between the U.S. and Iran, testing a fragile ceasefire. Brent crude is trading near $98 a barrel, and the conflict, now in its fourth month, has kept the critical Strait of Hormuz largely closed, choking off a significant portion of the world's daily oil supply and adding to global inflationary pressures. U.S. Treasury yields moved higher on rising oil prices and a strong private payrolls report. The 10-year is at 4.48%, the two-year yield is at 4.08%, and the 30-year bond yield is at 4.99%. And now let's check the scoreboard. Wall Street is seeing some pullbacks today after tensions in the Middle East are heating back up. Midday, the SP was down over a half a percent, the Dow was down around 0.8%, and the Nasdaq was also down roughly 0.8%. That's all for your daily rap today. I'm Rachel Anderson from Pinextra Pro, turning data into stories.