The S&P 500 will initially exclude SpaceX but Elon Musk is coming for your retirement savings anyway

Good morning. On Fortune’s radar today:

Elon Musk wants your retirement savings for SpaceX.

Markets: Jobs number incoming!

Trump’s new anti-slavery tariffs could be on shaky legal ground.

Hezbollah rejects ceasefire but hope persists.

No, the World Cup does not boost GDP.

What’s crypto actually good for? Buying sketchy vials from “Louise.”

One way or another, your retirement savings are likely to end up being invested in SpaceX

Officials overseeing the S&P 500 have decided NOT to fast-track the inclusion of SpaceX, Anthropic, and other “megacap” IPOs in its blue-chip index of stocks, according to a statement from S&P Dow Jones Indices. 

S&PDJI had considered waiving its standard rules around ownership, profitability, and trading history in order to include the companies. Those rules seek to guarantee that only high-quality companies are included in the S&P, based on their track record of profits and the wide availability of their shares.

But it has held firm. That means it will be a year or more before SpaceX et al are eligible for inclusion in the index that is often favored by people with 401(k)s or other standard retirement saving plans.

But, as the FT points out, Russell, Morningstar and Nasdaq have all changed their rules to include the megacaps. Retail investors seeking to exclude these companies from their portfolios will have to avoid all those indexes and stick with S&P, in other words. While there is a lot of excitement around the SpaceX and Anthropic IPOs, many investors are wary that they are asking for valuations that are far in excess of their underlying businesses (not to mention that SpaceX isn’t profitable).

In addition, SpaceX will set aside up to 30% of its share offering for retail investors. Typically, companies going public limit their retail offering to between 5% and 10%. The implication is that Elon Musk is hoping his vast army of fans will buy in, regardless of the quality of his financial statements. 

Bottom line: SpaceX has gone to lengths to get exposure to retail investors’ money. So don’t fool yourself into thinking that you can easily avoid investing in SpaceX—if you’re using mutual funds or indexes to save for retirement, you’ll have to pick and choose carefully if you want to avoid funding Elon Musk’s rocket dreams.

SpaceX and Anthropic are about to go public—and your 401(k) may be forced to buy in - Catherina Gioino

Musk Leaves Investors Starstruck at Dimon’s SpaceX Extravaganza - Bloomberg

Anthropic Urges Global Pause in AI Development, Flags ‘Self-Improvement’ Risk - WSJ

It's all about the jobs 

Nonfarm payrolls: The U.S. Bureau of Labor Statistics will release a new jobs number for May at 8.30 a.m. this morning. The Dow Jones survey expectation is for 80,000. However, the range of estimates is very wide: Goldman Sachs is forecasting 60,000 and Vanguard expects only 20,000. A high number could pressure the Fed into raising interest rates this year. Expect volatility in U.S. stocks regardless of the number.

S&P 500 futures were down 0.45% this morning. The index rose 0.41% yesterday and remains just under its record high. 

In Europe,........

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