US finance seems on another planet

US financial markets appear disconnected from global economic realities, reaching historic highs even as concerns about oil crises, inflation, and recession risks loom. This rally is largely fueled by fervent optimism surrounding generative artificial intelligence, with semiconductor companies, including Nvidia and Intel, seeing significant gains.

The excitement around AI has propelled companies like Alphabet and Nvidia to record stock prices. Intel, once facing survival concerns in 2024, has also experienced a dramatic stock increase. The potential for further market surges exists with upcoming IPOs from major AI players.

OpenAI has officially announced its intention to go public, filing the necessary legal documents with US financial regulators. This follows a similar move by Anthropic. While neither company has provided a timeline, their valuations are estimated at over $850 billion and $960 billion, respectively. These figures are staggering for companies that were virtually unknown just four years ago and far exceed the market capitalization of top European companies.

Attention is also turning to Elon Musk's SpaceX, which is expected to make its stock market debut on June 12 with a valuation target exceeding $1.75 trillion. Demand for SpaceX shares reportedly outstrips supply. However, significant doubts persist. A successful IPO could send a positive signal to other tech giants, but a significant drop in SpaceX's stock price could trigger a market shockwave with long-lasting global repercussions.

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A long term, geopolitical crises matter less to financial markets than expected.