IPOs in Focus as the Fed Holds the Line | 5 Jun 2026 | On Investing | Charles Schwab

1. The IPO Market & Index Dynamics

• The Valuation Hype: There is intense market focus and speculation surrounding an upcoming "Big Three" cluster of mega-cap technology IPOs. Early estimates place their collective market capitalization at a staggering $4 trillion [00:01:13].
• Float Adjusted vs. Total Market Cap: Sonders clarifies that total market capitalization figures are highly misleading for equity indexes like the S&P 500, which utilize float-adjusted market capitalization (only counting shares actually available to the public) [00:01:44]. While historical 1990s tech IPOs typically floated 10% to 20% of their total shares, current estimates for these upcoming companies suggest a much smaller initial float of just 4% to 9% [].