The article discusses significant risks currently affecting the stock market, including heightened tensions from the Iran conflict, concerns over a potential AI bubble burst, and anticipated Federal Reserve rate hikes following a strong jobs report. Notably, the upcoming SpaceX IPO is expected to further complicate market dynamics, as it may prompt investors to sell off other stocks to raise cash. Key economic indicators include a slight decline in Dow Jones futures and an increase in oil prices. Additionally, there are reports of Iran launching missiles at Israel, intensifying geopolitical tensions, which impact market sentiment.

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Investing tech stocks

Markets face triple threat of Iran war reigniting, AI bubble popping, and Fed rates rising while epic SpaceX IPO could fuel even more chaos

Jason Ma

By Jason Ma Jason Ma

Weekend Editor Down Arrow Button Icon

Jason Ma

By Jason Ma Jason Ma

Weekend Editor Down Arrow Button Icon

June 7, 2026, 6:43 PM ET

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Missiles launched from Iran toward Israel are seen in the sky over the West Bank city of Hebron on June 7, 2026.

Missiles launched from Iran toward Israel are seen in the sky over the West Bank city of Hebron on June 7, 2026.Wisam Hashlamoun/Anadolu via Getty Images

Investors should buckle up for a bumpy ride as multiple risks have suddenly converged to test what looked like an unstoppable stock rally.

Tech selloff

On Friday, tech stocks led a market bloodbath after the Labor Department’s monthly jobs report showed employers added a net 172,000 jobs last month, nearly double Wall Street forecasts.

Prior months were also revised sharply higher, indicating the labor market was much more resilient than previously thought in the face of higher oil prices caused by the Iran war.

With the employment picture looking steadier, the Fed is expected to focus more on fighting inflation, which has exceeded the central bank’s 2% target for five years. Investors priced in a greater probability of tighter monetary policy, giving up on the prospect of additional rate cuts anytime soon.

But the stock market’s troubles began when chip designer Broadcom gave disappointing AI-related guidance late Wednesday in its quarterly earnings report. That sparked a selloff on Thursday that got further stoked by Friday’s strong jobs report.

The coming week will likely see even more volatility as fresh readings on consumer inflation on Wednesday and producer inflation on Thursday fuel additional Fed rate hike fears.

Also on Thursday, SpaceX will price its IPO, and shares will begin trading on Friday. While IPOs are often accompanied by volatility, Greg Boutle, head of U.S. equity derivative strategy at BNP Paribas, pointed out in a note that what’s different this time is the largest market cap ever seen in a U.S. IPO.

SpaceX plans to raise at least $75 billion by selling over 555 million shares at $135 a piece, valuing the company at more than $1.75 trillion. If underwriters exercise options for additional allotments to meet high demand, proceeds could grow to $85.7 billion.

“We think many of the standalone SpaceX flows might be digestible. The problem is that many of these flows are potentially same-way and additive,” Boutle explained. “With the SpaceX free float reported to be close to $75bn on IPO, it’s easy to see how $30bn of passive buying, a retail investor chase, and levered ETF and option flows collectively could quickly become challenging for the stock’s liquidity. If all are chasing to buy (or sell) at the same time, the risk of price dislocation becomes much greater.”

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.

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By Jason MaWeekend Editor

Jason Ma is the weekend editor at Fortune, where he covers markets, the economy, finance, and housing.

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