Inflation's 4.2% Shock, SpaceX's $900B Gap, and AI Kills Its First Software Category!

Money Masters' Market Pulse Week 24

June 12, 2026

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Dear Money Master,

Inflation just crossed 4% for the first time in three years, and the Fed is running out of room to stay quiet. Energy prices are doing the heavy lifting, but the squeeze is spreading and the interest rate decision coming next week just got a lot more complicated.

Then SpaceX finally hits Wall Street on Friday with a $75 billion offering and a valuation its own bankers put at nearly $1.8 trillion. Two independent analysts say that number is fiction. We break down why the gap exists, and what it tells you about how rocket companies get priced like tech companies.

📰 Your Daily Financial Digest - June 12th, 2026

🌍 Economics:

Inflation Just Hit a 3-Year High. Here's the Number That Actually Matters.🔥 READ MORE

Consumer prices rose 4.2% annually in May, the highest reading since April 2023 and well above last month's 3.8%. Energy costs surged 23.5% over the past year, driving most of the move. The Fed meets next week, and markets now expect rates to stay put, with some pricing in a hike before year-end.

Here's the concept to understand: CPI, the Consumer Price Index, is the economy's official price tag. The government tracks a basket of everything Americans buy, gas, food, rent, healthcare, and measures how much that basket costs compared to a year ago. When the number rises, your purchasing power falls.

But the smarter number to watch is core CPI, which strips out food and energy because those prices swing wildly with things like weather and war. Core came in at 2.9% annually, still elevated, but actually cooling on a monthly basis. That gap between the headline number (4.2%) and the core (2.9%) tells you something important: most of this inflation is coming from oil, not from the broad economy running hot.

Why it matters: the Fed targets 2% inflation. At 4.2%, they have a problem. But if core stays contained, they have an argument for patience. Investors are watching the June 17 decision like a pressure gauge, one wrong signal and rate expectations reset fast.

💻 Technology:

SpaceX's $75B IPO Is Either the Deal of the Decade or the Most Overvalued Stock in History. 🚀 READ MORE

SpaceX hits public markets Friday in a $75 billion offering that's reportedly four times oversubscribed. The company's bankers are pricing it at nearly $1.8 trillion. Two independent analysts, Morningstar and NYU's Aswath Damodaran, say the real number is somewhere between $825 billion and $1.2 trillion. That's a gap of up to $1 trillion, depending on who you believe.

The concept at the center of this is valuation, what a company is actually worth today based on what it's expected to earn in the future. For profitable, predictable businesses, valuation is relatively straightforward. SpaceX's rocket launch and Starlink internet businesses are exactly that: high margins, recurring revenue, growing fast. Both analysts agree those are genuinely valuable.

The problem is the AI business bolted on top. SpaceX wants to build orbital data centers, satellites loaded with chips, powered by solar panels, running AI in space. Musk believes this gets to a gigawatt of compute by end of next year. Industry experts say space data centers at scale are a decade away. Morningstar's analyst described the difference between their $63 fair value per share and the $135 offering price as essentially a $72 call option on Musk delivering the impossible on schedule.

That's the bet investors are making. The rockets and Starlink are worth buying. The rest is a wager on one man's ability to do three near-impossible things simultaneously.

💹Earnings:

The European AI Startup That's Quietly Killing Enterprise Software.📈 READ MORE

Lovable, a two-and-a-half-year-old European startup, just crossed $500 million in annualized revenue, up from $400 million just months ago. Its users are building 1 million new software projects per week. Most of them are non-technical founders, designers, and salespeople replacing software they used to buy.

The concept here is SaaS disruption, and it's worth understanding because it affects some of the most valuable companies in the world. SaaS stands for Software as a Service: the model where businesses pay monthly or annual subscriptions to use tools like CRMs, HR platforms, or analytics dashboards. It's been one of the most profitable business models in tech for 20 years.

Lovable lets users build those same tools themselves using AI, in hours, with no coding. Its survey data shows users are doing exactly that, replacing purchased software with things they built. The threat to SaaS margins is real: when a customer can vibe-code their own CRM for free, the pricing power that made SaaS so valuable starts to erode.

The unresolved question is maintenance. Software breaks constantly as the systems beneath it change. Buying SaaS means someone else deals with that. Building your own means you own the problem. If Lovable can solve the maintenance layer, the SaaS business model has a serious problem. If it can't, this is a fast-burning trend with a hard ceiling.

Either way, investors in legacy software companies are paying close attention.

A Senior Analyst Sees Half a Billion Dollar Potential.

Kingscrowd Capital's senior analyst reviewed RISE Robotics and projected potential growth to a $500 million valuation. The community round is open now on Wefunder. You don't have to be an institutional investor to get in at today's price.

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DISCLAIMER: This information is for educational purposes only and does not constitute financial advice. The publisher does not accept any responsibility for any losses incurred as a result of actions taken based on the information provided. Always conduct your own research or consult with a financial advisor before making any investment decisions.