US stocks are falling as SpaceX drops sharply after its record IPO, bad news for investors who bought the hype and a warning sign for an overvalued market.

• SpaceX has fallen over 30% from its peak, as investors doubt Elon Musk's plan to build AI data centers in space.
• Engineers say powering, cooling, and repairing orbital data centers is nearly impossible, so the vision looks like more hype than substance.
• A flood of new shares hits the market starting in August as employee lockups expire, threatening to push the price even lower.
• Short sellers are betting heavily against the stock, with more than a quarter of available shares borrowed and sold — more than Nvidia, Apple, or Tesla.
• The Iran conflict is now in its sixth day of US strikes on civilian targets, risking an oil price spike if Iran shuts the Strait of Hormuz.

Outlook: SpaceX could keep falling below $100, and rising borrowing costs and war risks may drag the whole US market and the dollar down with it.