Tech IPOs

California anticipates significant tax revenue from upcoming tech IPOs like SpaceX, OpenAI, and Anthropic. However, sophisticated tax planning, evolving stock compensation, and pre-IPO liquidity events may temper the windfall compared to past booms. While the state is poised to collect, the timing and ultimate amount remain uncertain due to employee financial decisions and potential relocation incentives.

Stock futures indicate a positive opening after yesterday’s downturn. Investors are monitoring economic data, legislative actions, and earnings reports. Key developments include a nuanced labor market report, the House voting to repeal Trump’s tariffs, mixed signals from fast-food giants, a surge in tech debt for AI investments, and the reopening of El Paso airspace. Meanwhile, David Einhorn predicts more significant Fed rate cuts than the market anticipates, leading him to invest heavily in gold.