NASDAQ:FRTT 25 June 2026

June 25, 2026, 1:17 PM EDT. Wall Street analyst Mark Hulbert forecasts a 40% stock market crash driven by mega-IPOs from SpaceX and AI firms like OpenAI. Citing Harvard economist Xavier Gabaix, Hulbert says massive IPOs funnel cash from existing stock holdings into new issues, draining market liquidity. Experts highlight that funds to buy these IPO shares come from selling blue-chip stocks like Apple and Microsoft. This capital shift could reduce the money circulating in the secondary market, potentially sparking a severe bear market within a year. The combined IPO fundraising may exceed $200 billion, posing a structural liquidity drain. Market watchers caution that big IPOs risk destabilizing the broader stock ecosystem, with major investors reallocating assets toward new public offerings.