From the Schwab Network desk in Chicago, Marley Kayden opens Tuesday's Market on Close by previewing a session packed with market-moving headlines. She signals immediately that SpaceX, AI policy out of Washington, and upcoming Magnificent Seven earnings will dominate the final takeaways. The brief opening sets a brisk, information-dense tone for the four-minute episode.

SpaceX finally catches a bid after seven consecutive down sessions, powered by the announcement of its first post-IPO earnings report on August 4th. The date matters far beyond the headline numbers: it activates the company's unique, accelerated lockup expiration mechanism. Insiders will be permitted to sell 20% of their eligible locked-up shares — totaling up to 911.5 million shares — on August 6th, just the second full trading day after results drop. ^{[1] — Marley Kayden "SpaceX reports its first post-IPO earnings on August 4th — and the clock immediately starts on a massive insider unlock. Up to 911.5 millio…" 00:15 Play} There's also an additional sweetener: another 10% of locked-up stock could be freed if SpaceX shares close at least 30% above the IPO price for five of the ten trading days leading into the report. The mechanics are unusually complex for a recently public company, and the sheer volume of potentially available supply sets the stage for dramatic post-earnings price action.

The numbers behind SpaceX's short-selling frenzy are staggering. According to S3 Advisors, approximately 260.6 million shares are now sold short — about 32% of the company's publicly tradable float, representing roughly $25 billion in notional bearish bets. ^{[1] — Marley Kayden "Short interest in SpaceX has surged from roughly 6% of the public float just a month ago to 32% today, representing $25 billion in notional…" 01:25 Play} Just a month ago, that figure stood at around 40 million shares, or about 6% of float. The speed of the buildup is extraordinary by any measure. Despite CEO Elon Musk's publicly issued warning that short sellers 'won't survive,' the bearish positioning has only accelerated. Adding to the pressure, SpaceX shares have now fallen close to half from the company's intraday peak of $225.64 on June 16th, and nearly 40% from the all-time closing price of $211.39 on that same date — a brutal drawdown for a company that only recently went public.

Washington's focus shifted to artificial intelligence as Treasury Secretary Scott Bessant put Chinese AI companies on notice: the U.S. is prepared to impose sanctions if officials determine that American AI models have been improperly appropriated. The statement signals the administration is moving beyond rhetorical concern about AI intellectual property toward concrete enforcement threats. ^{[1] — Marley Kayden "Treasury Secretary Scott Bessant has warned the U.S. could sanction Chinese AI companies for improperly using American AI models. The warni…" 02:38 Play} The policy posture is directly informed by a bombshell letter Anthropic sent to the Senate Committee on Banking, Housing and Urban Affairs, in which the company alleged that Alibaba had carried out what it described as the largest known distillation attack against it to date — a technique where a competitor trains its model on the outputs of another's without consent. The combination of a senior Treasury warning and a named corporate victim marks a meaningful escalation in the U.S.-China AI rivalry.

The tariff calendar is about to flip. U.S. Trade Representative Jameson Grier told markets that new trade actions could be announced imminently as the administration finalises its strategy before temporary Section 122 tariffs under the 1974 Trade Act lapse at 12:01 a.m. Eastern on Friday. ^{[1] — Marley Kayden "Temporary U.S. tariffs under Section 122 of the 1974 Trade Act expire at 12:01 a.m. Friday with no congressional action expected. New dutie…" 03:23 Play} Congress has shown no appetite to intervene, meaning the expiration is effectively certain. The administration's next move appears to be a pivot to Section 301 — a separate provision of the same 1974 trade law that allows for retaliatory measures against alleged unfair foreign trade practices, in this case forced labor. Separately, President Trump has already imposed a 50% tariff on most Canadian goods, citing what he characterised as discriminatory trade barriers affecting American auto, dairy, and alcohol sectors — ratcheting up pressure on a long-standing trade relationship.