Good morning and welcome to Markets Desk, your midday read on what's moving markets right now.
SpaceX's long-awaited public debut is generating serious heat across the broader market. Options volumes are surging in any equity with a SpaceX connection as investors scramble for exposure ahead of Friday's historic listing. It's a classic adjacency trade — when the primary asset is out of reach, capital finds the nearest proxy.
That SpaceX momentum is also reshaping how analysts think about Wall Street's biggest banks. JPMorgan is flagging Goldman Sachs and Morgan Stanley as near-term beneficiaries, arguing investors are underpricing the trading and underwriting revenue that bumper IPO issuance — combined with elevated volatility — should deliver in the second quarter. It's a straightforward fee story, and JPMorgan thinks the street is sleeping on it.
Meanwhile, in the energy complex, oil is extending its slide after reports surfaced of a potential United States-Iran agreement that could reopen the Strait of Hormuz. West Texas Intermediate and Brent are both lower on the session as traders price in the possibility of Iranian barrels returning to global supply. A sanctions relief deal would meaningfully shift the supply picture, and crude is reflecting that uncertainty in real time.
That's the tape. Markets Desk, signing off the floor.
