An imminent wave of large AI financing, such as SpaceX, tests the ability of the US stock market to absorb new stocks flood.

As companies raise funds to advance their artificial intelligence strategies, a flood of new stock supply is causing Wall Street to start questioning: whether the market has enough funds to absorb these stocks, and how the increase in equity supply will affect broader stock price performance. Risks began to emerge last Friday - there were reports that Meta Platforms Inc. is considering raising billions of dollars through a stock offering, and after the news was released, its stock price fell by 5.5%. The Nasdaq 100 index plummeted by 4.8%, marking the largest single-day drop in over a year; the S&P 500 index fell by 2.6%, its worst performance since October last year. The issue is that Meta is just the tip of the iceberg. According to compiled media data, the future IPOs of SpaceX, Anthropic, and OpenAI could add nearly $4 trillion in market value to the US stock market in the coming months. Currently, there is already oversubscription in the demand for SpaceX's issuance. Meanwhile, Alphabet Inc. plans to raise $85 billion in the next quarter, mainly through selling stocks on the public market, and other tech giants needing funds for AI data centers may follow suit. "This is something we have never seen before, such a massive supply event in such a short time," said Ano Kuhanathan, director of corporate research at Allianz Global Investors. "It is a huge supply shock."