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The Wall Street Journal reported that a coalition of state attorneys general have opened an investigation into OpenAI. View More

OpenAI Ceo Sam Altman speaks to journalists after meeting with US House Minority Leader Hakeem Jeffries on Capitol Hill in Washington, DC, on June 3, 2026. Brendan Smialowski | AFP | Getty Images OpenAI on Friday said it intends to "engage constructively" with state attorneys general and will take their concerns "seriously," a spokesperson told CNBC. The company's statement landed after The Wall Street Journal reported that a coalition of state attorneys general opened an investigation into the artificial intelligence company. OpenAI was reportedly served with a subpoena seeking information about its approach to advertising, consumer and health data, minor and senior users and models, among other activities. "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way," the spokesperson said. OpenAI rocketed into the mainstream in 2022 following the launch of its chatbot ChatGPT, which now supports more than 1 billion monthly active users. The company has ballooned into one of the most valuable private companies on the planet, reaching a valuation of $850 billion earlier this year. OpenAI is now gearing up for an IPO that could land as soon as this year, announcing on Monday that it confidentially filed its prospectus with the Securities and Exchange Commission. But along with the company's meteoric rise has come mounting legal woes over purported harms caused by its technology. Florida Attorney General James Uthmeier sued OpenAI earlier this month, alleging that the company knowingly released an unsafe product, namely ChatGPT, that could harm users. Uthmeier said during a press conference at the time that he expected other states to take similar action. The company is being sued by seven families of the victims of the Tumbler Ridge mass shooting, which took place in Canada in February. The families allege that the attacker used ChatGPT to plan the attack, and that the company did not do anything to stop it.OpenAI is also facing a number of wrongful death lawsuits, which allege that ChatGPT drove users to experience harmful delusions and, in some cases, to commit suicide. "Today's ChatGPT includes a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts," OpenAI's spokesperson said Friday.If you are having suicidal thoughts or are in distress, contact the Suicide & Crisis Lifeline at 988 for support and assistance from a trained counselor.WATCH: OpenAI chairman Bret Taylor: Heartened everyone is taking AI regulation seriously watch nowVIDEO4:5104:51OpenAI chairman Bret Taylor: Heartened everyone is taking AI regulation seriouslyPower Lunch Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

CNBC's Jim Cramer said it's not too late to buy SpaceX if investors view the company as a long-term bet on space exploration. View More

In this articleSPCXFollow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO1:3901:39If SpaceX comes down, you should buy more: Jim CramerMad Money with Jim Cramer CNBC's Jim Cramer said Friday that it's not too late for investors to buy SpaceX after its blockbuster debut— but only if they're willing to view the stock as a long-term bet on the future rather than a traditional investment."Is it too late to get into SpaceX?" the "Mad Money" host said. "If you're willing to look at this as a different kind of stock, not a short or even medium term investment ... then you've got my blessing."SpaceX debuted on the Nasdaq on Friday, opening at $150 per share but surging as high as $176. Elon Musk's rocket company closed the session with a market cap of $2.1 trillion. The powerful rally quickly reignited concerns that the stock's valuation may have outrun its current financial performance. Cramer, however, said that investors are not buying SpaceX solely for what it earns today."This is a long-term call on space exploration," Cramer said.Rather than focusing on current losses and cash outflows, Cramer argued that many investors are buying into Elon Musk's long-term vision and a pipeline of projects that may take years to fully materialize."I think they've considered the risk and recognized that there could be losses as far as the eye can see," he said.That willingness to look beyond near-term financial results helps explain the stock's strong debut, according to Cramer. While skeptics have questioned the company's valuation, he said shareholders are focused on the possibility that SpaceX's future opportunities could be far larger than what is currently reflected in its business.For investors who share that outlook, Cramer said pullbacks should be viewed as opportunities rather than reasons to abandon the stock."If it comes down, then you should buy more because the upside is conceivably unfathomable," he said.Cramer also praised the handling of the IPO by Goldman Sachs and Morgan Stanley, saying the two leading banks on the deal struck a balance between institutional and retail demand, while avoiding the kind of chaotic first-day surge that can create problems later. Cramer's Charitable Trust, the portfolio used by the CNBC Investing Club, owns shares of Goldman."The stock opened at a reasonable price versus the IPO price, not so high that it would encourage flipping but not that low as to foment panic," he said. "That's amazing." VIDEO7:0807:08Media is in secular decline, not going to invest in it: Jim Cramer Jim Cramer's Guide to InvestingClick here to read Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest smarter Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.DisclaimerQuestions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The DOJ approval is an important milestone for the roughly $110 billion deal, though it could still face legal challenges from state attorneys general. View More

In this articlePSKYWBDFollow your favorite stocksCREATE FREE ACCOUNT Paramount Skydance CEO David Ellison speaks on stage during the Paramount Pictures presentation at CinemaCon at The Colosseum at Caesars Palace in Las Vegas, April 16, 2026.Valerie Macon | AFP | Getty Images The U.S. Department of Justice has signed off on Paramount Skydance's proposed acquisition of Warner Bros. Discovery, clearing the merger of federal antitrust concerns. "The Division has completed its analysis of the proposed merger of Paramount and Warner Bros. and determined based on the evidence received in its investigation that the transaction is not likely to result in harm to competition or American consumers," the department said in its determination. A Paramount spokesperson said in a statement the company was "grateful for the Department of Justice's thorough review of this transaction, as well as the work of the other agencies that have completed their reviews and provided clearance to date. "This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment," the spokesperson said. "We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators and the entertainment industry as a whole."It's an important milestone for the roughly $110 billion deal, though it could still face legal challenges from state attorneys general. California Attorney General Rob Bonta has been among the officials reviewing the proposal, and the deal "remains under investigation by the California Department of Justice," his office said in a statement Friday.Paramount's stock was up about 3% in after-hours trading. Politico first reported the government approval. Paramount CEO David Ellison told investors during the company's April earnings call that the deal was on track to close by September, after which point a so-called ticking fee kicks in, making the deal more expensive. The proposed merger has already received WBD shareholder approval. In late February, Paramount offered $31 per share to acquire all of WBD's assets, which includes cable TV networks like CNN and TBS, the Warner Bros. film studio and streaming platform HBO Max. The proposal came following multiple offers and upended a deal with Netflix for that company to acquire WBD's streaming and film assets. Paramount is still awaiting regulatory approval from European officials. Earlier this week the European Union's regulator arm began reviewing the proposed deal and set a July 14 deadline for vetting, according to a notice on its website. On Wednesday Paramount said in a regulatory filing that the deal received approval from the Australian Competition and Consumer Commission. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Wealth advisors say SpaceXers have unique ways of addressing their financial challenges, including whiteboarding, troubleshooting and AI. View More

SpaceX executives and employees ring the opening bell at the Nasdaq MarketSite to celebrate the launch of SpaceX's initial public offering in New York on June 12, 2026.Adam Jeffery | CNBC Thousands of SpaceX employees who have suddenly become millionaires are redefining the wealth management business with their combined fortunes.As CNBC reported earlier this week, more than 100 SpaceX employees with between $1 billion and $5 billion in combined assets have joined forces to negotiate better terms with wealth management firms. In anticipation of their massive windfall from Friday's initial public offering, the group has signed a deal with the registered investment advisor Choreo for wealth management services at a fee that's lower than industry standard. The deal, with a fee that starts at 0.5% and falls as the group's assets grow, represents a watershed moment in the wealth management industry, which traditionally charges clients based on their individual assets. Choreo's CEO, Jason Van de Loo, said the SpaceX IPO is a rare opportunity to build lasting relationships with a large group of clients whose wealth is about to skyrocket."This is a unique transformational event," Van de Loo said. "We don't see events like this often. Most investors have decades to build wealth. When you get a moment like this, it's almost more like a large inheritance, or like winning a lottery ticket. It's not easy to wrap your head around the transactional components of that event." Get Inside Wealth directly to your inboxThe Inside Wealth newsletter by Robert Frank is your weekly guide to high-net-worth investors and the industries that serve them.Subscribe here to get access today. The size of the Choreo group will likely grow over time, and the option is being made available to employees of other firms that are about to IPO. Yet the battle to manage the tens of billions of dollars in newly liquid wealth held by SpaceX employees is just getting started. Private banks, wire houses, trust companies and other registered investment advisors are all sending teams and hosting events in California, Texas and Florida is hopes of winning their business.Jamie Battmer, chief investment officer of RIA firm Creative Planning, said the firm has dozens of SpaceX clients. The biggest question they face, he said, is whether to sell any of their stock.SpaceX equity — typically granted in the form of restricted stock — represents up to 90% of many SpaceXers' wealth, Battmer said. With such heavy concentration in what will likely be a volatile stock, advisors typically counsel clients to diversify. SpaceXers, however, tend to be deep believers in the future of the company and rarely want to sell any stock. Battmer said his firm is helping these clients with tax-efficient indexing or other option derivative strategies. They're also seeking help with estate planning and philanthropy, including setting up charitable remainder trusts and donor-advised funds.Most SpaceXers are engineers or technicians by training, so they immerse themselves in the details of how wealth management products work. Yet while they're highly educated, many of them are new to the often complex world of wealth."Because it's a group of engineers, these are individuals who do a better job of dotting every i and crossing every t," Battmer said. "But the vulnerabilities that come with just a seismic shift in your net worth are very dangerous and need to be navigated. Oftentimes highly skilled professionals can make the wrong decisions."SpaceXers also have unique ways of addressing their financial challenges. Like with many aerospace and high-tech companies, the SpaceX culture is built around whiteboarding and troubleshooting.Bill Dramis, a senior banker at J.P. Morgan Private Bank who works with high net worth executives and employees of aerospace and defense companies in Southern California, said that, in general, engineers typically carry the practice of group problem-solving into wealth management."Many of these people that we're meeting are incredibly intelligent and like to whiteboard examples with their peers," he said. "That's how they've grown up and built their knowledge base. So now it's, 'I have this problem set to tackle around wealth creation, tax impacts, charitable planning and giving.' And they want to do that with their peers. They put it on the table and stress test it."SpaceXers are also relying on artificial intelligence for wealth advice. Advisors say SpaceX employees often come to meetings with recommendations from Anthropic's Claude or OpenAI's ChatGPT."What's been interesting to us so far is we're finding creative ways to leverage AI as a part of those conversations," Van de Loo said. "I think naturally for this employee cohort, the first instinct is to go ask Claude, 'What should I do?'"They're bringing that output into conversations with our team, and we're able to say, 'OK, here's where that output is valid, but here's where it might be a product-specific solution, not a planning solution,'" he said. Most of all, however, SpaceXers are looking for wealth advisors who can truly educate them."We are here to advise people who are coming into these circumstances for the first time," Dramis said. "A lot of the questions that we're asked are, 'Help me evaluate the scenarios, the trade-offs.' We have a very long-term history of helping clients manage through and continue to manage concentrations as their wealth." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Kevin Warsh's two immediate predecessors preferred to be called the Fed "chair." For Warsh, it's "chairman" of the Federal Reserve. View More

Kevin Warsh, chairman of the US Federal Reserve nominee for US President Donald Trump, is sworn in during a Senate Banking, Housing, and Urban Affairs Committee confirmation hearing in Washington, DC, US, on Tuesday, April 21, 2026. Graeme Sloan | Bloomberg | Getty Images It's officially "Chairman" Kevin Warsh, not "chair."  The Federal Reserve website now lists Warsh as "chairman," not "chair," reversing the past 12 years when his predecessors Janet Yellen and Jerome Powell both chose to be called "chair."Before Yellen, the term "chairman" was used exclusively.No law or regulation governs what a chair is called, leaving it up to personal preference. The Federal Reserve Act references "chairman" of the Board of Governors and "vice chairman." It even names "vice chairman of supervision," a position not created until the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.The Fed is a body created by Congress, and in 2021, under the leadership of then-House Speaker Nancy Pelosi, the House adopted gender neutral language for its official proceedings. It changed "chairman" to "chair," "seamen" to "seafarers," and gender-specific language such as "daughter" and "sister" to "child" and "sibling."The current House adopted that same gender-neutral language in its rules package. But Republicans have been critical of such changes and the broader diversity, equity and inclusion movement. On House individual and committee websites, which are not governed by the House rules, the word "chairman" looks to be used almost exclusively. The same is true for the Senate. So Chairman Warsh will testify before Chairman Tim Scott in the Senate and Chairman French Hill in the House when he does his semi-annual testimony.A 2024 analysis by Bloomberg found that 185 of the S&P 500 companies used gender-neutral language, triple what it had been just four years earlier. But the biggest banks, including JPMorgan Chase, Goldman Sachs and Morgan Stanley used "chairmen." At Citigroup, Jane Fraser is "chair," but so was her predecessor, John C. Dugan.Alicia Syrett, founder of Chairs & Leads, a network of chairs and directors, and its prior group, Madam Chair, didn't think much of the change."I personally would not read too much into Chairman Warsh's title,'' she said. "I think it's his personal decision to choose between "chair" or "chairman" based on his preference just as much as a female in the role could decide to use "chairwoman" instead of "chair" based on her preference." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The cryptocurrency's latest selloff is forcing investors to revisit what role, if any, bitcoin should play in a portfolio. View More

Bitcoin has lost nearly half its value since reaching a record high above $123,000 in July 2025. After years of bitcoin rewarding those who held through periods of volatility, the selloff is just the latest test of investors' mettle.But bitcoin's recent decline doesn't appear to reflect a fundamental change in the investment, says Daniel Sotiroff, associate director of ETF and Passive Strategies Research at Morningstar."I think a lot of this is crypto being crypto," he says.Bitcoin's selloff comes amid weakness across a range of assets, as investors reassess risk and where to put their money. The Nasdaq Composite and gold have both pulled back from recent highs, falling roughly 4% and 8%, respectively. As of Friday, bitcoin traded around $63,900. The recent decline likely reflects several factors, Sotiroff says, including investors taking profits after bitcoin's run to record highs. Expectations that interest rates could remain higher for longer may also be making investors more cautious about riskier assets, including bitcoin, he says. Other investors may be shifting money into different high-upside opportunities, including artificial intelligence-related investments.While previous bitcoin selloffs were often followed by large rebounds in price, the latest decline may prompt some investors to revisit why they own bitcoin in the first place, Sotiroff says. Here's what he and other experts have to say about the case for holding crypto, and how much exposure is appropriate for the average investor. Bitcoin's role in investor portfolios Bitcoin is frequently promoted as an investment that complements more traditional assets in a portfolio. Because it doesn't always move in tandem with stocks, bonds or real estate, the thinking goes, a bitcoin holding could boost returns when other assets decline, Sotiroff says. "I've heard it referred to as a diversifier. That seems to be the strongest argument," Sotiroff says.Supporters also argue bitcoin can hold its value during periods of economic uncertainty or protect investors from inflation.Sotiroff is more skeptical of those claims. He says the cryptocurrency's volatility makes it difficult to view as a reliable store of value and notes that investors already have other tools available to hedge against inflation, including Treasury Inflation-Protected Securities, or TIPS.The recent selloff is a reminder that bitcoin's gains can be accompanied by equally dramatic declines, he says. That uncertainty is one reason many financial planners recommend limiting exposure to a small portion of a broader portfolio."You just really can't make a call on what direction it's going to go," says Sotiroff. An 'appropriate rule of thumb' for bitcoin exposure For a high-risk asset like bitcoin, a 1% to 5% allocation of an investor's overall portfolio is an "appropriate rule of thumb to mitigate risk and yet get some upside exposure," says Andrew Herzog, a certified financial planner and enrolled agent with The Watchman Group.Herzog's recommendation is broadly consistent with what other financial planners have suggested for bitcoin, though the appropriate amount depends on an investor's risk tolerance."We're talking about low single digit percentage points," Sotiroff says. "If you went beyond that, you start to see increases in volatility in your portfolio."Even as bitcoin has become easier for mainstream investors to own — including through the launch of spot bitcoin ETFs in 2024 — its dramatic price swings have remained a defining feature of the asset, underscoring why many financial planners continue to recommend modest allocations.For some investors, those risks are part of the bargain. They are willing to hold bitcoin through large selloffs because they believe the cryptocurrency's long-term upside outweighs the volatility. "What a selloff actually does is reveal which investors had a plan and which were riding momentum," says Matt Chancey, a CFP at Tax Alpha Companies. "If you owned bitcoin because it was going up, the case is broken, but the case was never sound."Not all financial professionals agree bitcoin belongs in a portfolio.Bitcoin differs from stocks, bonds and real estate because it doesn't generate earnings, interest payments or rental income that investors can use to estimate its value, says Robert Johnson, a finance professor at Creighton University. Instead, its price is largely determined solely by investor demand."You cannot invest in Bitcoin, you can only speculate," he says.Sotiroff agrees that bitcoin is difficult to value using traditional financial metrics."The best analogy I've heard is that it's more like a collectible, because it's basically worth what other people are going to pay for it," he says.Want to get ahead at work? Then you need to learn how to make effective small talk. In CNBC's new online course, How To Talk To People At Work, expert instructors share practical strategies to help you use everyday conversations to gain visibility, build meaningful relationships and accelerate your career growth. Sign up today! Take control of your money with CNBC Select CNBC Select is editorially independent and may earn a commission from affiliate partners on links.Summer travel costs are up this year. 5 of the best ways to save money on your trip.Here's how you can snag a $200 Amazon gift card ahead of Prime Day 2026Best reverse mortgage companies of June 2026Chase unveils massive Sapphire Preferred overhaul: Enhanced rewards, new perks and a crushing transfer partner change VIDEO9:3609:36I quit my $250K/year tech job–now I make $33K/year selling matchaMillennial Money

Investors will can hold SpaceX stock by virtue of owning shares in certain mutual funds and exchange-traded funds. View More

In this articleSPCXFollow your favorite stocksCREATE FREE ACCOUNT Elon Musk is photographed at SpaceX in Brownsville, Texas. Marvin Joseph | The Washington Post | Getty Images The SpaceX initial public offering on Friday is poised to be the biggest ever — and is generating a lot of buzz. But IPOs can carry dangers for the average investor, according to finance experts. Follow CNBC's live updates on the SpaceX (SPCX) IPOFor starters, stocks are often unprofitable in the early period after an IPO, experts said. And buying individual companies — instead of investment funds with a broadly diversified basket of stocks — can make that volatility more acute for unwary investors due to their concentrated positions. There's good news, though: Investors who want a piece of SpaceX don't have to buy the stock outright. There are ample mutual funds and exchange-traded funds that hold SpaceX positions, or will do so after the company goes public. They would hold the stock as one sliver of a broader investment portfolio. The same is true of other highly anticipated, blockbuster IPOs slated for this year, like those of Anthropic and OpenAI, experts said."There will be other ways investors can access the stock, other than buying the IPO," said Zachary Evens, an analyst of passive strategies at Morningstar. At $135 per share, SpaceX would be valued at nearly $1.8 trillion, making it the seventh-biggest company in the U.S. by market capitalization. The IPO is poised to make CEO Elon Musk the world's first trillionaire. How to get access to SpaceX in index funds Vehicles drive past a SpaceX Falcon 9 rocket displayed outside a Space Exploration Technologies Corp. facility in Hawthorne, California, on June 8, 2026. Patrick T. Fallon | Afp | Getty Images The universe of investment funds for retail investors generally falls into two categories: those that are actively managed and others that are passively managed. The latter, known as index funds, are designed to track the broad performance of the stock market via a specific market index. Data shows that, over the long term, such funds generally outperform those in which money managers actively pick stocks. Many index fund investors will get access to SpaceX within days or weeks following the IPO, experts said. watch nowVIDEO3:5803:58SpaceX impact to indices will be small at first, says Jefferies' Jane GibbonsThe Exchange The timeline depends on the specific criteria established by various index providers — and ranges from a few days to more than a year. For example, the Russell U.S. indexes can add mega-cap companies like SpaceX into their indexes after five days of trading, Evens said. The same timeline applies to indexes provided by FTSE, CRSP and MSCI, according to Vanguard Group. Here's what this means for investors: Those with shares in index mutual funds or ETFs that track these indexes, such as the Russell 1000 or CRSP U.S. Total Stock Market Index, will own a piece of SpaceX after that five-day period, Evens said. Morningstar owns CRSP Market Indexes.Examples of such funds include the iShares Russell 1000 ETF (IWB) and the Vanguard Total Stock Market ETF (VTI), Evens said. Read more CNBC personal finance coverageTrump Accounts create a 'legal backdoor' for Roth IRA wealth, tax attorney saysSocial Security retirement trust fund may be depleted in 2032: Trustees reportCollege sticker prices top $100,000 at 16 schools — but many students pay lessHow to get SpaceX stock — without buying the IPOCNBC's Financial Advisor 100: Best financial advisors, top firms ranked "The inclusion of new entrants after the end of the fifth day of trading, rather than immediately on listing, should help address any immediate post-IPO share price volatility," according to an article by London Stock Exchange Group, which owns the FTSE and Russell indexes. Other index providers have adopted a slightly longer timeline. MSCI has a 10-day timeline, for example. Nasdaq adds a stock to the Nasdaq 100 index 15 trading days after its IPO if it is among the top 40 stocks, as SpaceX will be; otherwise, the timeline elongates to about three months. watch nowVIDEO1:1301:13Sen. Warren sends letter to index providers, questions SpaceX's IPO accommodationsClosing Bell: Overtime Some of the index providers, including Nasdaq and FTSE Russell, relaxed their inclusion policies this year to "fast-track" the adoption of mega-IPOs into their respective indexes. "Index methodologies vary, but historically, most have required new listings to 'season' for several months following their entry into the public market," according to Charles Schwab. "This period gives stocks time to demonstrate their investability before being added to an index."Accelerating the timeline helps the index more closely represent the U.S. stock market as a whole and minimizes deviation from the market's performance, according to LSEG.Sen. Elizabeth Warren, D-Mass., published a letter to index providers on Thursday questioning those fast-track policies. watch nowVIDEO12:4112:41The biggest IPO ever: SpaceXHalftime Report "This wave of changes by your firms raise significant investor protection concerns, particularly amid reports that SpaceX lobbied for 'quicker entry into your indexes,'" Warren wrote. "For the millions of Americans invested in index funds, the changes may lead to the automatic purchase of billions of dollars of SpaceX stock without them having any say in the matter." SpaceX and your 401(k) Retirement savers are among those investors who may gain access to SpaceX through index funds, depending on the specific funds employers make available in their 401(k) plans. About 86% of 401(k) plans had an index U.S. stock fund in 2025, for example, according to the Plan Sponsor Council of America, a trade group. Why it may take years for SpaceX to join the S&P 500 watch nowVIDEO8:3608:36Why Wall Street has never seen a company like SpaceXTech Meanwhile, investors in the S&P 500 — perhaps the best known of the stock indexes — may have to wait years for SpaceX to join the ranks.The provider, S&P Dow Jones, requires companies to be public for at least 12 months to be eligible for inclusion in the S&P 500. Additionally, the company must be profitable — in other words, it must post positive earnings for its most recent quarter, and over the last four quarters combined, Evens said. Tesla (TSLA) notably took about 10 years to be added to the S&P 500 after its IPO, Evens said. "So, SpaceX will not be joining the S&P 500 — and that's by far the index with the most amount of money indexed to it," said Jay Ritter, director of The IPO Initiative at the University of Florida."With SpaceX, the profitability requirement is likely to hold up their inclusion for a number of years," Ritter said. However, this timeline doesn't apply to all S&P indexes — for example, the S&P Total Market Index can include SpaceX after five trading days, according to Vanguard. Ultimately, SpaceX would likely account for a small piece of the overall index mutual funds and ETFs, experts said. For example, it would amount to roughly 0.1% of the Vanguard Total Stock Market fund and about 0.6% of the Invesco QQQ ETF, which tracks the Nasdaq 100, Ritter said.Those weightings can rise organically over time as early investors, founders and employees sell additional shares in the months after an IPO, according to Vanguard. How to get access to SpaceX in active funds SpaceX initial public offering signage is displayed at the Bank of America building in New York, U.S., June 4, 2026. Jeenah Moon | Reuters Investors in actively managed mutual funds and ETFs can get a piece of SpaceX — and other mega-IPOs this year — without a lag. Some of these funds have established large pre-IPO positions that dwarf those of index funds. For example, eight active funds — including mutual funds, ETFs and closed-end funds — held positions in SpaceX that exceeded 10% of their net asset value, according to Morningstar data as of June 1. Those funds, from most to least exposure, are: the Baron Partners Fund, Baron Asset Fund, Baron Focused Growth Fund, Baron Global Opportunity Fund, The Private Shares Fund, Baron Opportunity Fund, ERShares Private-Public Crossover ETF and Ark Venture Fund, according to Morningstar. SpaceX accounted for 37% of assets in the Baron Partners mutual fund, according to Morningstar. watch nowVIDEO4:0704:07Countdown to the SpaceX IPO: Here's what to expectSquawk Box However, those holdings could get diluted if investors crowd into such offerings, experts said. "Paradoxically, the more popular these [funds] become with investors, the greater the possibility that influx of assets will dilute the SpaceX weighting, thereby potentially lessening the very thing it's being so sought for in the first place: its potential to contribute to performance," Jeffrey Ptak, managing director for Morningstar Research Services at Morningstar, wrote last week. Of course, investors who hold active funds with large SpaceX positions are more vulnerable to big swings in stock price, experts said. Active funds also tend to be more expensive than index funds, which is one reason why index funds tend to outperform their actively managed counterparts over the long term, they said. The risk of buying an IPO Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.Spencer Platt | Getty Images The "cheapest and most direct" way of buying SpaceX would be to purchase the stock on an exchange after it lists on Friday, Evens said. But buying individual stocks generally carries greater financial risks than buying a basket of diversified securities — and those risks are heightened in the early days of an IPO, Ritter said. "The most likely outcome with the SpaceX IPO is it will jump on the first day, probably underperform the market during the next year and during the next three years," said Ritter, citing historical precedent. With any stock, there's always a chance of earning a big payoff — but the probability of losing money on an individual security is higher than the probability of gaining money, Ritter said. It's akin to gambling, he said. Additionally, because the SpaceX valuation is already so high, "the probability of a really big gain, in my opinion, just is not there," he said.There could be benefits to holding single stocks, too. Investors who do lose money amid volatility can sell that holding and use the loss to offset any capital gains taxes on their winning investments, a strategy called "tax-loss harvesting." "The ability to harvest tax losses and let your winners ride is one reason why tax-savvy investors might indeed want to own individual stocks rather than funds," Ritter said. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Indian households often see gold as a wealth store, kept untouched for years. Gold leasing allows owners to lend their gold for interest while retaining ownership. Details here. View More

Millions are expected to attend 2026 World Cup matches across North America. For at least one host state, New Jersey, the tournament also brings mounting costs. View More

Millions of soccer fans celebrated the 2026 World Cup kicking off on Thursday, a first step toward the tournament's eventual final match on July 19 at MetLife Stadium in East Rutherford, New Jersey. But the state hosting the final is still squaring off with FIFA, soccer's global governing body, over ticket prices and the massive transportation costs associated with the highly-anticipated tournament.The World Cup is expected to generate significant income for New Jersey and its businesses by drawing millions of tourists to the area. But state officials are balking at the mounting costs of hosting the tournament — costs that could ultimately be passed onto taxpayers and which are already making it more expensive for fans to travel to matches. The state isn't alone: Some other hosts, including Massachusetts and California, have experienced similar uncertainties in recent weeks and months.In short, some U.S. states still don't know if they'll benefit financially from hosting World Cup games. "Our administration inherited an agreement where FIFA is providing $0 for transportation to the World Cup. Zero," New Jersey Governor Mikie Sherrill said in a statement provided to CNBC. "At the same time, FIFA is making $11 billion off of this World Cup and charging fans up to $10,000 for a single ticket for the final."FIFA did not immediately respond to CNBC Make It's request for comment.DON'T MISS: The communication skill that can help you accelerate your career growthNew Jersey anticipates needing to spend $48 million on its transit system, NJ Transit — including expanded rail services, shuttles, traffic management and public messaging efforts to manage the huge upticks in ridership, Sherrill's office announced in April. Heightened security will severely limit parking at matches played in suburban stadiums, where many fans typically drive and park for major events. The governor says she asked FIFA to help offset the costs of transporting as many as 40,000 fans per match, to no avail."They have to have more train conductors [and] a lot more security because it's an international event," says Danielle Zanzalari, an assistant professor of economics at Seton Hall University. "They're fixing potholes on the road. They're putting up barriers and construction for traffic. All of those [measures] cost money."Some of the money will be paid by NJ Transit riders, incurring backlash from some locals. After initially announcing in April that round-trip NJ Transit tickets to MetLife Stadium would cost fans $150 apiece — almost 12 times the normal price — the state later backtracked, lowering the fare to $98 and making up the difference with added advertising revenue, NJ Transit said in May.The higher-than-usual NJ Transit fares add to the already-exorbitant prices for tickets to the World Cup games themselves, with some tickets to the final being advertised for more than $30,000 apiece on resale platforms. Will New Jersey's investments pay off? With eight matches scheduled to be played at MetLife Stadium, including the final, the World Cup is projected to attract more than one million visitors to both New Jersey and nearby New York. That influx is forecasted to generate $3.3 billion for the local economy and support more than 26,000 jobs, according to an economic impact summary published in July 2025 by the states' host committee.Some experts call the committee's forecasts for the World Cup's estimated financial return overly optimistic. Zanzalari calls them "very much overstated," noting that such forecasts are typically inflated by groups looking to win competitive bidding processes to host major events. When New Jersey and other states hosted matches during the 1994 World Cup, the host cities underperformed economic forecasts for that tournament by an average of $712 million, according to a study published by economists Robert Baade and Victor Matheson in 2007.In April, 80% of U.S. hotels saw reservations around the World Cup falling short of forecasts, according to a report from the American Hotel & Lodging Association, feeding concerns that this year's tournament could also come up short of economic expectations.New Jersey has invested millions of dollars preparing to host the World Cup, including providing the local World Cup Host Committee with $35 million to support local infrastructure and community initiatives, according to Sherrill's office. The state has also budgeted $120 million for other related costs, including construction and security costs, such as building a pedestrian bridge for fans near MetLife Stadium.New Jersey currently faces a structural budgetary deficit of $1.5 billion, driven largely by the loss of federal Medicaid funding and the impending expiration of Covid-19 pandemic aid. Contract and funding agreements around the World Cup were approved by the administration of the previous governor, Phil Murphy. Now, Sherrill faces her first budget cycle as governor while reassuring constituents that the tournament won't be a drain on taxpayers.Some economists aren't sold on the World Cup being an overall boon to the state and its taxpayers. "New Jersey's investment into the World Cup is not going to pay off. Fans might have a great time, but taxpayers are not going to see a positive net return," says Zanzalari.However, despite some state officials' complaints, Sherrill's office expresses confidence that the high-profile event will ultimately be a winner for New Jersey. "Since taking office, Governor Sherrill has ... worked to ensure the cost of transporting fans does not fall on the backs of New Jersey taxpayers and commuters, while also investing in initiatives that bring the economic and cultural benefits of the World Cup to communities across our state," a spokesperson for Sherrill's office says.Want to get ahead at work? Then you need to learn how to make effective small talk. In CNBC's new online course, How To Talk To People At Work, expert instructors share practical strategies to help you use everyday conversations to gain visibility, build meaningful relationships and accelerate your career growth. Sign up today! Take control of your money with CNBC Select CNBC Select is editorially independent and may earn a commission from affiliate partners on links.Summer travel costs are up this year. 5 of the best ways to save money on your trip.Here's how you can snag a $200 Amazon gift card ahead of Prime Day 2026Best reverse mortgage companies of June 2026Chase unveils massive Sapphire Preferred overhaul: Enhanced rewards, new perks and a crushing transfer partner change VIDEO12:0412:04143 investors said no to his wearable idea, he says—now Whoop is worth $10BFounder Effect

Here are five key things investors need to know to start the trading day. View More

This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Happy Friday. Follow along with CNBC's reporters throughout the day as we cover SpaceX's record-setting IPO, on air and online.Stock futures are higher this morning after the major averages rallied in Thursday's session.Here are five key things investors need to know to start the trading day: 1. Liftoff SpaceX founder Elon Musk addresses members of the media during a press conference announcing new developments of the Crew Dragon reusable spacecraft, at SpaceX headquarters in Hawthorne, California on October 10, 2019. Philip Pacheco | Afp | Getty Images It's the big day: Elon Musk's SpaceX is set to make its public market debut on the Nasdaq. The long-awaited initial public offering will likely set a new record on Wall Street and should mint thousands of new millionaires.Here's what to know:SpaceX is selling 555.6 million shares at $135 each, according to a filing with the Securities and Exchange Commission, raising a record $75 billion and valuing the company at $1.77 trillion.SpaceX is earmarking a smaller-than-anticipated portion of its IPO for retail traders, a person familiar with the matter told CNBC yesterday.While the IPO isn't expected to break the bull market, it will test how Wall Street values a new cohort of "strategic tech" firms.SpaceX's only profitable arm is Starlink, but investors see roadblocks ahead for the unit and are being asked to put their trust in Musk.With today's IPO, Musk is set to become the world's first trillionaire. The IPO will likely also create thousands of new millionaires and several new billionaires. Here's how they're planning to spend their newfound wealth.In an exclusive interview with CNBC, SpaceX President and COO Gwynne Shotwell said she wasn't sure the company would go public, but that "it actually feels like the right time now."Follow live updates on the historic IPO here. 2. Settling up U.S. President Donald Trump speaks in the Oval Office at the White House in Washington, D.C., U.S., June 11, 2026. Daniel Heuer | Reuters Stocks roared back to life yesterday after President Donald Trump said the U.S. "just made a great settlement of the war," suggesting a U.S.-Iran peace deal could be on the horizon. Trump said the agreement was subject to the "finalization of documents" and that he expects a signing sometime "over the next few days."Iran state media reported that the proposed peace plan includes a commitment from Tehran to reopen the Strait of Hormuz within 30 days and a commitment from the U.S. to lift oil sanctions. Oil prices dropped and stocks rallied in yesterday's session. Gold, meanwhile, fell to a six-month low amid concerns over inflation. Thursday's rally pulled the S&P 500 into positive territory for the week. Follow live market updates here. 3. Expiration date Jay Clayton, former chairman of the US Securities and Exchange Commission (SEC), speaks during the Bloomberg Invest event in New York, US, on Thursday, June 8, 2023. Jeenah Moon | Bloomberg | Getty Images Trump announced yesterday that he would nominate Jay Clayton to be the permanent director of national intelligence. Clayton is currently the U.S. Attorney for the Southern District of New York and a former chairman of the Securities and Exchange Commission.Clayton is expected to take the baton from Bill Pulte, who last week was tapped by Trump to serve as acting director after Tulsi Gabbard resigned. Pulte's lack of experience in intelligence has drawn criticism from Democrats, along with some GOP lawmakers. Democrats have pledged to vote against any short-term extension of Section 702 of the Foreign Intelligence Surveillance Act — a major national security tool — following Pulte's appointment. The program is set to expire today after the House rejected a proposal to extend it yesterday. Get Morning Squawk directly in your inboxCNBC's Morning Squawk recaps the biggest stories investors should know before the stock market opens, every weekday morning.Subscribe here to get access today. 4. Bezos on AI Jeff Bezos, Co-CEO of Project Prometheus, speaking with CNBC in San Francisco on June 11th, 2026.CNBC Jeff Bezos' AI startup Prometheus announced a $12 billion funding round yesterday. That values the company, which was launched late last year, at $41 billion.In his first time speaking at length about the startup, Bezos on Thursday told CNBC's David Faber that Prometheus has done "remarkable" work but it is "premature" to disclose its accomplishments so far. The Amazon founder said the latest funding round will allow Prometheus, which focuses on AI models for physical tasks, to increase its compute.Bezos also shared his views on how AI should be regulated and whether the tech can improve Americans' standard of living. See all the big moments from the interview here. 5. Ad campaign A boy peers out from under a voting booth as his mother marks her ballot during the state’s primary election to choose candidates for the November midterm elections, in Cary, North Carolina, U.S., March 3, 2026. Jonathan Drake | Reuters Your TV ads may soon be getting a lot more political. A new report forecasts that the 2026 midterm elections could see the highest advertising spend of any U.S. election.The 2026 races are expected to generate $11.6 billion in ad spend, according to the report from AdImpact. That's up nearly $800 million from the projection AdImpact made last year and would top the $11.2 billion spent on the 2024 presidential cycle.As CNBC's Laya Neelakandan notes, more than $5 billion of that is expected to go to broadcast. California, Texas, Michigan and Ohio are among the states seeing the largest spending overall. The Daily Dividend Here are some stories you might have missed this week:World Cup travel boost hasn't materialized for U.S. businesses — yetHow screwworm could re-inflate record beef prices this summerTrump might ‘love the inflation,’ but experts say consumers are feeling the painCommercial real estate saw record lending competition in April: JLL51% of U.S. adults say the American Dream is out of reach for most people right now: CNBC surveySam Bankman-Fried files formal request for a pardon from Trump— CNBC's Chris Eudaily, Leslie Picker, Yun Li, Sarah Min, Deena Zaidi, Deirdre Bosa, Jasmine Wu, Lora Kolodny, Hayley Cuccinello, Kevin Breuninger, Spencer Kimball, Sean Conlon, Lisa Kailai Han, Dan Mangan, Justin Papp, Annie Palmer and Laya Neelakandan contributed to this report.CJ Haddad assisted in the production of this newsletter. Josephine Rozzelle edited this edition. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.