Smart Investor: Float Woes for SpaceX, Where to Invest in Stocks, and a Revival for Sustainable Strategies

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This week’s highlights:

It was another deflating week for the stock market, thanks to rising oil prices and bond yields. For a time, it looked like stock investors would keep “looking through” the latest oil price jump, but when Brent Crude topped $100 on Thursday, that seemed to get their attention. How high will oil rise? Karen Gilchrist spoke to energy analysts about the situation. Find out why one says that “it’s worse than last time.”

There’s more going on than just ripples from renewed fighting in Iran. Earnings disappointments also weighed on the broader market. Both Alphabet and Tesla slid, partly due to concerns about their massive capex plans. Tesla’s nearly 19% decline was its biggest weekly loss since the pandemic hit in March 2020. Morningstar analysts have a different take than the market, however. You can find their views on Alphabet here and Tesla here.

The IPO for Elon Musk’s SpaceX drew lots of superlatives around its size. Now the same is true for the losses inflicted on investors who bought the stock after it went public. SpaceX is down 43% from the high set in the week after its IPO and 15% below the price at which the record-sized offering hit the market. SpaceX earnings are due on Aug. 4, and they could be critical. But two days later comes another big event: the first lockup expiration date for pre-IPO investors, which could unleash additional shares that would dwarf the IPO. We take a close look at the lockups and explain how they could mean some index funds will end up holding a lot more SpaceX in their portfolios in the coming months.

There are clearly some significant crosswinds buffeting the stock market. This past week, Morningstar chief US strategist Dave Sekera, Morningstar chief economist Preston Caldwell, and investment specialist Susan Dziubinski talked about where the stock market may be heading, the outlook for the economy, and Morningstar’s take on where to invest now.

This past week, Morningstar’s Leslie Norton also checked in with Pimco economic advisor and former Fed Vice Chair Richard Clarida on the firm’s latest secular outlook. Find out what key trends Pimco is watching, and where risks and opportunities may lie in the bond market. One area Pimco flags is private credit; the latest data from PitchBook LCD supports that unease.

Lastly, sustainable investing trends had a rough start to 2026, both in terms of performance and continued political pressure. But things are looking up for returns lately. We explain what’s been driving the revival in sustainable investing strategy performance.

As always, be sure to visit the Markets page for our latest coverage and live stock market updates, along with our full weekly calendar of key upcoming data and events.