Greetings,

Wall Street is doing some big contortions to prepare for SpaceX's mega-IPO and all of the investors who want to get in on it. And there will surely be more adjustments ahead of Anthropic's big debut, now, too. More on that below.

Also in this edition:

• Anthropic files for IPO
• US appeals order for broad tariff refund
• SEC proposes ending Biden-era climate disclosure rules
• Bain: AI cost savings fall short of projections

SpaceX's planned Nasdaq listing on June 12 is expected to raise $86.5 billion at a roughly $2 trillion valuation, making it the largest US IPO on record and a major test for equity markets. Investors are already seeking exposure, with $14 billion flowing into funds that hold stakes in the company and ETF providers preparing new products tied to the listing. The offering could also force significant portfolio adjustments, with passive funds tracking major benchmarks expected to absorb a large share of SpaceX's public float, potentially affecting liquidity and existing holdings.

Anthropic has confidentially filed for an initial public offering, although details regarding the size and timing of the IPO have not been disclosed. The move comes as interest in AI technology continues to surge, with Anthropic being a key player in the development of advanced AI systems.

The White House is appealing a judge's authority to order nationwide refunds of tariffs ruled illegal by the Supreme Court, potentially disrupting the refund process. The Justice Department argues that only importers who sue should receive refunds, while the judge has ordered refunds for all importers. The legal battle could create confusion and delay the refund process.

The Securities and Exchange Commission issued a proposal to formally rescind Biden-era rules that set climate-related disclosure requirements for companies. "The final rules were a dramatic overreach of the commission's statutory authority and, independently, unsound as a matter of policy," the SEC said. The agency approved the regulations in March 2024, but the rules were placed on hold one month later amid litigation.

During a confirmation hearing, Federal Reserve Chair Kevin Warsh expressed support for a measure known as "trimmed mean" inflation, which filters out certain price moves and suggests that inflation is lower than other gauges would indicate. However, debate continues about which methods of measuring inflation are most accurate and instructive in the long run.

Corporations are increasingly seeking cheaper AI models as rising costs strain IT budgets and returns on investment remain uncertain. This trend could impact the valuations of major AI labs like Anthropic, which recently reached a $965 billion valuation after a $65 billion funding round. Companies like Factory and Convergint are closely monitoring AI usage, switching to open-source models, and avoiding reliance on a single vendor to mitigate potential price gouging.

Cost savings from AI and automation initiatives have not met expectations, according to Bain & Co.'s 2026 survey of executives at large global companies. Forty percent of companies measuring their AI savings saw cost reductions of 10% or less, far below the projections that justified many of their investments. Despite increased spending on AI, Bain warns that the savings realized so far are much smaller than anticipated, raising concerns about the sustainability of funding future AI efforts from prior returns.