Good morning, you're tuned in to Markets Desk.
Global equity markets are under real pressure this morning, with S&P five hundred futures off more than one percent ahead of the New York open and Nasdaq futures down nearly two percent. The selling is broad-based, spanning Asia and Europe, driven by renewed Middle East tensions after Houthi drone strikes on Saudi airports and a sharp cut to Tesla's capital expenditure guidance from Elon Musk that rattled sentiment across the tech complex.
That Tesla news connects to a broader story around Musk's rumored SpaceX-Tesla merger, which analysts are increasingly calling a dilutive nightmare for SpaceX shareholders. The math simply doesn't favor the deal at current valuations, and institutional investors appear to be pricing in that uncertainty this morning, adding another layer of pressure to an already fragile tape.
Meanwhile, Nvidia's Jensen Huang is offering a rare note of optimism, telling CNBC that demand from neocloud operators is, in his words, off the charts. The catch is capital scarcity. Smaller cloud firms are struggling to finance the buildout needed to absorb that demand, which means Nvidia's order pipeline may be longer than its revenue recognition timeline suggests.
That's the tape. Markets Desk, signing off the floor.
