Technology stocks fell Tuesday, pushing the Nasdaq 100 to lose more than $1 trillion in market value and sending SpaceX below $2 trillion for the first time since it went public.

SpaceX, set to enter the Nasdaq 100, has fallen $600 billion in market value in three trading days. The firm’s market cap would be under $1.95 trillion if losses are held constant.

Shares of aerospace and technology companies were down more than 3.6% at $149.1 in premarket trading on Tuesday. Shares were currently 9% higher than $135, where it debuted as a public company.

The futures of the Nasdaq 100 were down 2.5%, indicating an opening drop of more than 700 points. This 2.79% fall would result in a $1.15 trillion loss in the market cap for the index as per calculations. 

Chipmakers Lead Market Declines

Many of the hardest hit were semiconductor stocks, which had been among the biggest beneficiaries of this year’s artificial intelligence boom. Intel was down 5.2% and Advanced Micro Devices dropped 5.2%,

Memory chipmakers were under pressure too. Micron Technology lost 8%. SanDisk dropped 9.2%, and Western Digital gave up 7.5%. South Korean memory chip stocks also fell sharply, including a sharp decline.

Fears Over AI Spending Plague Big Tech

The selloff also hit six of the seven stocks in Wall Street’s “Magnificent Seven” group, as investors questioned whether enormous outlay on AI infrastructure will pay off soon enough to justify the prices.

Shares of Alphabet fell 2.1%, Amazon 1%, Tesla 3%, Nvidia 3% and Apple 0.4%. Collectively these companies were on track to wipe out roughly $345 billion in market value if the losses held. 

Investor sentiment was also pressured because of the worry that the US Federal Reserve may continue with interest rate hikes. Traders are now expecting a 50-bp rate hike from the Fed by December according to CME Group’s FedWatch Tool.

The bets have shifted significantly higher from the view just two weeks ago of a single 25-basis-point-rate hike, as markets adjust to a hawkish policy outlook under new Federal Reserve Chair Kevin Warsh.

Source: Reuters 

---

Follow Inspirepreneur Magazine for daily global business news.

NatPower and Tesla have signed an exclusive agreement to develop the first phase of a utility-scale battery storage programme worth up to $5b billion for Italy and Britain.

As part of the agreement, Tesla will deliver 25 GWh of battery storage capacity using its Megapack systems to help European nations develop their energy storage capabilities, growing dependence on renewable power.

The deal, which spans multiple years, also includes Tesla’s energy trading software in order to help operators know when they should store, purchase and sell electricity depending on market conditions.

Long Term Expansion

Five initial projects in Italy and the UK make up the initial phase of the programme. In the future, the companies plan to expand this program to more than 100 GWh of storage capacity. The construction cost is estimated at $4 billion-$5 billion.

The projects are expected to make more than $15 billion in revenues over two decades, according to the estimates given.

NatPower Chief Executive Officer Fabrizio Zago stated the energy storage industry has been able to secure necessary technology and funding, but faces many challenges getting projects over the line on time. The collaboration with Tesla sets an alignment between financing and execution, he said, so new projects such as this one are easier to take on in other regions.

Source: Reuters 

---

Follow Inspirepreneur Magazine for daily global business news.

Key Highlights 

• Iluka Resources was awarded a A$1.65 billion loan by the Australian government for its Eneabba rare earths refinery.
• The refinery is completed 50% and over 70% would be completed by the end of 2026
• Iluka has also signed a rare earth oxide supply agreement with a global automotive company for four years.

Iluka Resources has received a A$1.65 billion ($1.15 billion) non-recourse loan for the construction of Iluka Resources Ltd.’s Eneabba rare earths refinery project in Western Australia.

Export Finance Australia confirmed access to the funds as part of its normal due diligence process, the company said.

Eneabba Refinery Construction Moves Forward

Western countries are stepping up efforts to secure scarce supplies of rare earth as China is currently the largest producer of those needed for electric vehicles and other technologies.

Iluka stated the first tranche of funding, which totals A$1.25 billion ($823 million), will be fully drawn down by end-September 2026. At that point the Eneabba refinery is anticipated to be approximately 75% finished. The company further stated that the refinery is more than 50% complete now. Iluka said Eneabba would be Australia’s first fully integrated rare earths refinery.

Civmec Awarded Refinery Contract

Iluka said Cimvec has been awarded a contract for structural, mechanical, piping, electrical and instrumentation works at the refinery. This contract is a continuation of the development work on the Eneabba project.

Iluka Scores Rare Earth Supply Deal

Iluka confirmed it has signed a binding agreement to supply magnet rare earth oxides to an undisclosed global automotive company. It agreed on an initial four year deal, which is approximately 10% of Iluka’s expected production. The firm is predicting revenue from the deal to be between a minimum of $155 million and as high as $172 million, given industry price forecasts.

Source: Reuters

---

Follow Inspirepreneur Magazine for daily global business news.

Key Highlights

• Investors request withdrawal of 16.8% of Apollo’s fund assets
• Apollo Debt Solutions only permitted 5% withdrawals
• Its fund has had $700 million in outflows this year.

Apollo Global Management has restricted investor withdrawals from its $26 billion private credit fund, Apollo Debt Solutions (ADS), after requests to withdraw money soared.

Investors requested to redeem approximately 16.8% of the fund’s total shares, but the fund only permitted withdrawal requests of up to 5%.

The withdrawals will lead to gross outflows of $700 million outpacing inflows of $300 million. As a result, the fund has net outflows of approximately 3% relative to its total asset value for the year.

Withdrawal Requests Jump Higher

These latest withdrawal requests were a jump from the 11.2% of investors in Q3 wanting to withdraw. Apollo Debt Solutions primarily helps affluent investors and typically provides them with an opportunity to redeem some of their capital once every three months.

Offshore Investors Lead Withdrawals

Private credit demand from large institutional investors remains solid, Apollo said.

The fund also showed a gap between US and overseas investors. US investor requests to withdraw were down to roughly 4.3% and offshore the reverse, a rise of 12.5%. Apollo anticipates that fundraising this year will outpace inflows from institutional investors compared to wealth-management clients.

Fund Returns Remain Positive

Last month, Apollo President Jim Zelter said that additional withdrawals were probable and market volatility was far from over.

The fund gained 1.5% so far this year through May 31, compared with a 1.2% return for the Morningstar LSTA Index of publicly traded leveraged loans. Apollo Debt Solutions, which launched in January 2022, generated returns of 8.13% this year till May.

Source: Reuters

---

Follow Inspirepreneur Magazine for daily global business news.

Former federal reserve chairman Allen Greenspan died at 100 at his home from complications of Parkinson’s disease.

He served as Fed chairman of the US Federal reserve from 1987 to January 2006, making him the second longest serving chairman in history. He became a leading figure in global finance, as well as greatly influencing the course of US monetary history during his 19 year tenure.

Guiding the Fed Through Some Serious Events

Greenspan was named federal chair by former president Ronald Reagan in 1987. He presided over the longest uninterrupted expansion, lasting from March 1991 to 2001, a decade without any GDP decline.

He also helped the economy through the 1987 stock market crash, 1990 recession period and a series of financial crisis in Asia and Russia. He also navigated through dot com collapse and the fallout from attacks of September 11. 

His management of the market crash in October 1987 won grudging media praise, and helped pin down his status as one of the world’s great central bankers.

Known as the US Fed ‘Maestro’

The 1990s were a time of vigorous growth and low inflation in the US economy, and Greenspan was named the Federal Reserve’s “maestro.”

In 1996 he famously coined the term “irrational exuberance” in financial markets. Investors and economists, people around the world, backed him and his speeches and congressional testimony. Before switching to economics and public policy, Greenspan studied music at the Juilliard School.

The legacy of Greenspan and the Financial Crisis

Debates over the role of Alan Greenspan in the 2008 financial crisis remain central to how historians evaluate his career today. Although he received universal praise during his Fed years, his record began to be questioned after the 2007-2009 global financial crisis.

His support for financial deregulation and low interest rates was seen as contributing factors in the housing bubble and financial crisis. Greenspan told lawmakers in 2008 that he was “shocked” that banks had engaged in what seemed to be a practice of taking risks that endangered their own survival. Even so, Greenspan remains one of the most influential people in modern economic history. 

Source: Reuters 

---

Follow Inspirepreneur Magazine for daily global business news.

IBM joined the OpenAI Daybreak Cyber Partner Program and is collaborating with the start-up integrated AI powered security tools into business operations, helping companies identify and introduce cyber security risk. 

As part of the partnership, IBM launched a new application security service that uses OpenAI’s capabilities to help organisations identify and validate software abilities with the greatest speed and precision. 

The partnership centres on boosting 2026 enterprise AI security, noted the leading global technology corporation as cyber threats evolve.

“The OpenAI Daybreak Cyber Partner Program expands our access to a broader set of advanced AI capabilities, which we deploy within our clients’ environments to help surface the most relevant risks faster and help them act with confidence,” said Mark Hughes, global managing partner for cybersecurity services at IBM Consulting.

New Application Security Service Launched

IBM also announced a new standalone IBM AppScan application security service powered by OpenAI machine learning that helps organisations more quickly and accurately find and validate software vulnerabilities.

The service is intended to enhance how companies identify and fix vulnerabilities in their software running systems, the company said.

Lightwell: A New Project for Finding Vulnerabilities

The new service was built on Project Lightwell IBM, a program released last month that helps engineers and AI tools in organisations to protect open-source software.

IBM and Red Hat have committed $5 billion for Project Lightwell which will harness OpenAI’s cyber capabilities in conjunction with various other AI models at the frontier for code review and remediation.

The OpenAI Daybreak Cyber Partner Program extends IBM’s access to world-class AI capabilities that will help our clients better identify risk promptly and with more confidence in responding. IBM stock gained 3.6% in extended trading after the announcement. 

Source: Reuters

---

Follow Inspirepreneur Magazine for daily global business news.

Key Highlights

• SpaceX has made its first foray into the bond market.
• The offering is being used by the company to switch from short-term bridging financing to longer-term debt.
• After going public, SpaceX reported $100.8 billion in cash reserves.
• Last year, revenue increased by 33% to $18.67 billion.
• The business is still making significant investments in the development of next-generation rockets and artificial intelligence.

Fresh off its NASDAQ debut, SpaceX has entered the bond market for the first time as it looks to finance investments in artificial intelligence infrastructure and next gen rockets.

Following its public debut, the business declared cash reserves of $100 billion, providing it with substantial financial accessibility as it pursues growth plans. 

Bond Offering for SpaceX Focuses on Refinancing Debt

SpaceX is using the bond sale to switch from short-term bridging funding to longer-term debt after going public on June 12.

The offering’s proceeds, along with associated fees and expenses, will be utilized for general corporate purposes and to replace money borrowed under its bridge loan arrangement, according to the company.

The offering’s size and cost have not been made public. For the third day in a row, SpaceX shares dropped 9% on Monday. 

AI & Rocket Investments Drive Spending

The bond issue coincides with spaceX’s in increased investment in the construction of next generation starship rocket and  AI infrastructure, 

Its revenue increased 33% over the previous year, at $18.67 billion. Nonetheless, the business declared a financial loss as it kept making large investments in expansion projects.

Elon Musk keeps 82% of SpaceX’s voting power after the IPO according to the company’s dual-class share structure. SpaceX can obtain more funding by raising debt without diluting current stockholders.

Good credit ratings and cash position

As per its IPO filing, SpaceX had $15.9 billion cash and cash equivalent at the end of March 

Also, last week, the company was given investment great ratings: Fitch give it a BBB+ plus reading and Moddy’s gave it a Baa1 rating. The ratings show sufficient ability to fulfill financial obligations and could reduce borrowing rates.

As it raises investment in artificial intelligence technology, SpaceX has also made deals to improve its computer capacity.

Source: Reuters 

---

Follow Inspirepreneur Magazine for daily global business news.

Key Highlights

• WhatsApp founder Will Cathcart is stepping down from the role after over seven years.
• Meta has named a new head for WhatsApp, the founder of CRED, Kunal Shah.
• Cathcart will continue to work on new products at Meta.
• Meta is investing $900 million in CRED.
• The investment has increased the valuation of CRED to $4.5 billion.

Seven Years of Will Cathcart

Meta announced that WhatsApp founder Will Cathcart will leave the role after leading the messaging platform for over seven years

Meta CEO, Mark Zuckerberg said that Cathcart will take on an unspecified role at the company in which he will build new products from scratch for meta. In a Facebook post, Zuckerberg also said that he was excited to work with Cathcart,

Meta did not immediately provide further details about the job. Cathcart also confirmed the move in a post on X, stating that WhatsApp is in the best possible place it has ever been and felt now was the right time to step down.

WhatsApp to be led by CRED Founder Kunal Shah

Kunal Shah, founder of Indian startup CRED (a fintech) has been chosen by Meta as the new head of WhatsApp. Shah founded CRED in 2018. It is a platform that rewards credit card holders for making their payments on time.

Given the importance of WhatsApp in constructing a global communication platform, Shah’s builder mentality also made him the right fit to lead its continued expansion, Zuckerberg said. Meta is also investing $900 million in CRED. Investment in the company post-money places CRED’s valuation at $4.5 billion, the company said.

WhatsApp grew after meta acquisition

Meta bought WhatsApp for $19 million in 2014. Since then, WhatsApp has reached about 3 million active users worldwide.

Meta began launching subscription plans on WhatsApp, Facebook and Instagram last month. The firm added that it will experiment with new subscription options for its artificial intelligence services. Meta sees these subscription plans helping to diversify its business away from ads while also strengthening its rising investments in AI.

Source: CNBC

---

Follow Inspirepreneur Magazine for daily global business news.

China has added 10 U.S. entities to its export control list. It says they are connected to the U.S. military, including two rare earth companies because Washington added several Chinese firms to its restriction earlier in October. The action will freeze Chinese dual-use exports to the firms affected and represents another step up in US-China trade tensions.

Rare Earth Companies impacted by China Export Controls

Included in the export control list are durable magnetic semiconductor maker MP Materials, USA Rare Earth and mission-critical motor manufacturer Aveox.

MP Materials, which partners with the Pentagon, is the only company that still operates an active rare earth mine in the U.S. Saint George at the mine-tree magnet supply chain for both MP Materials and USA Rare Earth.

The Chinese Commerce Ministry called China’s measures a countermeasure to what it described as the U.S. government’s “malicious practice” and aimed at protecting national security and interests, while realizing international obligations like non-proliferation.

Dual-Use Exports Must Stop Immediately

The Ministry of Commerce (MOFCOM) stated that organisations and individuals from any country or region may not transfer or supply items manufactured in China that are dual-use items to entities listed on the list.

The ministry also said all related export activities must end immediately. The new measures have the effect of a de facto embargo on dual-use exports to the entities listed. Until now, such exports needed permits, the latest step applies even tougher conditions.

China The Other Limits 46 Given That U. S. Companies

China’s Finance Ministry was quoted in a separate notice as taking measures against 46 more U.S. firms. The new rules prevent Chinese buyers from buying products made by those companies. Notably, U.S. owned enterprises in China would continue to be permitted to source.

Two weeks ago, the United States list of companies it allegedly believes helped Beijing’s military includes Alibaba, Baidu, BYD and NIO.

Source: Reuters

---

Follow Inspirepreneur Magazine for daily global business news.

Australia will sell advanced long-range radar to Canada under a A$2.5 billion ($1.75 billion) deal, Australia’s largest defence export agreement by value.

It is the first overseas sale of that Over-the-Horizon Radar capability for Australia and will help enable Canada to enhance surveillance across its northern Arctic while also providing savings through enhanced air control.

Over-the-Horizon Radar for Enhancing Arctic Security

It will include Australia’s Over-the-Horizon Radar technology, an over-the-horizon radar system that can detect and track aircraft, ships and missiles at long range. At a stretch, Australia’s Jindalee Operational Radar Network can identify targets at 3,000 kilometres (1,864 kilometres over land).

Canadian officials noted that the technology will be in support of the Canadian Arctic Over-the-Horizon Radar project, expanding Canada’s ability to monitor activity across its Arctic region. About 40% of Canada’s landmass falls within its Arctic territory, but it is infrequently populated and infrastructure goes further than the communities.

Australia, Canada Strengthen Defence Ties

The agreement marks a landmark in Aussie defence trade and opens doors for deeper-level defence industry collaboration between the two nations, according to Australian Prime Minister Anthony Albanese.

The radar project fits into a larger system of an overall Arctic surveillance and communications network, said Canada’s Secretary of State for Defence Procurement, Stephen Fuhr. Australia says the deal is the first stage of a broader partnership between both nations on radar technology.

Jobs to be Created in Australia with this Deal

According to the Australian government, the radar agreement is expected to support some 300 jobs nationwide. The agreement, which is the first time that the Over-the-Horizon Radar technology has been sold internationally, is also the largest defence export deal to date between both countries.

Source: Reuters

---

Follow Inspirepreneur Magazine for daily global business news.