SpaceX, OpenAI IPOs; Nvidia Earnings; Fed Rate Hikes

This Bloomberg News Now segment provides a rapid-fire update on significant developments across the tech and financial sectors. The broadcast covers potential IPOs from SpaceX and OpenAI, earnings reports from Nvidia and Anthropic, and the Federal Reserve's outlook on interest rates, along with other notable news items.

Nvidia's Sales Forecast and Market Reaction

Nvidia has projected sales of $91 billion for the three months ending in July. Despite this significant forecast, the market's reaction was described as tepid. Paul Meeks, head of technology research at Freedom Capital Markets, offered a more optimistic perspective, suggesting that the guidance might be even better than anticipated if certain business segments, like those in China, meet expectations. Meeks believes that additional revenue from these areas would be "icing on the cake," indicating confidence in the company's overall performance.

SpaceX and OpenAI Eye Public Markets

In major startup news, SpaceX has taken a concrete step towards a public debut by filing for an Initial Public Offering (IPO). The space exploration company is reportedly targeting a valuation exceeding $2 trillion for its listing, a move that would signify one of the largest ever. Concurrently, OpenAI is also preparing for its own IPO, with plans to file confidentially in the coming weeks and aiming for a public debut in the fall. The AI research firm is reportedly working with investment banks Goldman Sachs and Morgan Stanley for this endeavor, with expectations that its valuation could surpass $1 trillion.

The full discussion can be found on Bloomberg Podcast's YouTube channel.

Anthropic's Strong Revenue Growth

The AI safety and research company Anthropic is showing robust financial growth, with its revenue reportedly set to double in the second quarter. According to The Wall Street Journal, Anthropic has shared these figures with investors as part of an ongoing funding round. This growth trajectory could potentially place its valuation above that of OpenAI.

Federal Reserve Signals Potential Rate Hikes

Regarding monetary policy, minutes from the Federal Reserve's April meeting suggest that officials are considering interest rate increases. A majority of participants indicated that policy tightening might become appropriate if inflation continues to exceed the Fed's 2% target. This outlook stems from the belief that inflation could persist longer than previously anticipated. The minutes reveal a sentiment among many officials to move away from an easing bias and signal a potential rate hike as the next step.

Intuit Faces Stock Drop Amid Restructuring

Intuit's shares experienced a significant decline, dropping 11% in after-hours trading. This downturn followed the company's release of third-quarter results, which exceeded estimates and included an upward revision of its full-year revenue guidance. However, the company also announced plans to cut approximately 17% of its workforce.

US Charges Former Cuban President with Murder

In international news, the U.S. has formally charged former Cuban President Raul Castro with murder. Acting U.S. Attorney General Todd Blanche announced the charges, which also include destruction of aircraft and four counts of murder. These accusations are linked to the downing of two civilian aircraft operated by Brothers to the Rescue over international waters in 1996, an incident that resulted in the deaths of four individuals. Cuban President Miguel Diaz-Canel has characterized the U.S. indictment as a politically motivated move without legal basis. Meanwhile, former U.S. President Donald Trump commented that there would be no escalation regarding Cuba, stating that the country is "falling apart" and has "lost control." Trump also indicated that the U.S. would soon announce further actions concerning the oil embargo on Cuba.

Aaron Rodgers Announces Final NFL Season

In sports news, veteran NFL quarterback Aaron Rodgers has announced that the upcoming 2026 season will be his last. Rodgers, who plays for the Pittsburgh Steelers, stated that the hiring of Mike McCarthy as head coach was a significant factor in his decision to return for one more season.