SpaceX, Alphabet, and SK Hynix Are Sending a Big Signal to the Market, and No One Is Talking About It

Despite a growing number of headwinds, the S&P 500 (^GSPC +0.00%) has continued its march higher in 2026. The benchmark index was up 9.6% through the first half of the year, even amid an ongoing war in Iran that sent oil prices spiking. While we expected the Fed to lower interest rates in 2026, it's now more likely we'll see one or two interest rate hikes before the end of the year. Meanwhile, stock valuations have climbed to their highest level in history, outside the dot-com bubble, according to certain measures.

But the biggest warning signal that the bull market may be closer to the end than the start is coming from three companies: Space Exploration Technologies (SPCX +2.69%), better known as SpaceX, Alphabet (GOOG 0.37%) (GOOGL 0.23%), Google's parent company, and SK Hynix, one of the leading memory chipmakers.

Here's what investors need to know.

Setting new records on Wall Street

The above three companies all made history in recent weeks.

• Alphabet issued $85 billion worth of stock on June 2, the largest public equity raise in Wall Street history.
• SpaceX outdid Alphabet with its initial public offering on June 12, which ultimately raised $86 billion after the underwriters exercised their option to buy additional shares, making it the biggest IPO in history.
• SK Hynix, a Korean company, is set to list American depository receipts on the Nasdaq in a few weeks, raising up to $29 billion. That would be a record amount for an ADR.

These companies are seeking substantial capital from investors. And not only are they receiving it, but they're getting even more than they initially asked for. Alphabet initially planned to raise $80 billion, and SpaceX's IPO was meant to raise $75 billion. Combined, the three companies will raise about $200 billion.

$200 billion in cash doesn't just appear out of nowhere. Investors have to sell other assets to put up that money. Most likely, they're selling other securities, which will put pressure on the rest of the stock market. With more giant IPOs coming down the pipeline and more SpaceX shares entering the market post-lockup, there's still a huge amount of money that will shift in the market.

But these equity raises may signal something that could have a much bigger impact on long-term stock returns from here.

Why are these companies using equity to raise capital?

It's worth noting that all three companies are well-positioned to raise capital in the bond market rather than the stock market. Alphabet and SK Hynix, in particular, are immensely profitable companies with strong balance sheets that could take on more debt at relatively low interest rates.

To be sure, Alphabet added $31 billion in long-term debt to its balance sheet in the first quarter, but ultimately raised much more using equity. Even the unprofitable SpaceX has had no challenges raising capital via the bond market. It recently issued $25 billion in debt, more than its original plan to raise $20 billion from the market, after receiving $90 billion worth of orders.

The fact that these companies are tapping their equity for cash suggests they see the stock market as willing to pay premium prices for equity right now. That's certainly true, as the equity risk premium (the difference between the earnings yield and the yield on Treasury bonds) has shrunk to nearly nothing. In other words, it may be cheaper for these businesses to give up a portion of future earnings than to take on debt at their current valuations. After all, they can retire shares through buybacks in the future when their cash needs aren't as substantial.

But everyday investors should heed the warning that these companies are sending. Stocks are expensive right now, and it's a seller's market. That doesn't mean a market crash is imminent, but it does mean investors need to carefully consider a business's long-term value creation relative to its current market price and its cost of capital.