Marketplace Morning Report

Memorial Day weekend is here, kicking off the summer travel season. More Americans are expected to hit the roads this year, but it comes at a time when gas prices are the highest they've been in four years — up about a $1.40 since the U.S. and Israel attacked Iran, and Iran effectively closed off the Strait of Hormuz. Also on this morning’s podcast: high-profile concert cancellations and a preview of consumer sentiment.

Some of the biggest names in tech are making moves to go public this week. SpaceX — Elon Musk’s rocket, social media, and AI company — filed for an initial public offering yesterday. And the Wall Street Journal reported that OpenAI, the maker of ChatGPT, could file for an IPO as soon as tomorrow. These companies have raised a lot of private capital over the years. Why go public now? Plus, the pharmaceutical industry is investing billions in finding exotic radioactive isotopes to treat cancers.

About 8,000 Meta employees lost their jobs this week. The company is looking to offset its massive AI spending and “operate with a flatter structure." 'Flatness' has become a common refrain when tech companies shed jobs. It refers to the elimination of layers of middle-management roles, as AI agents take over some coordinating functions. Also on the show: Nvidia faces stiffer competition, and we learn about advancements in radiation cancer therapies.

Investors have been souring on bonds. To entice them back, bond yields have been rising. The yield on the 30-year bond yesterday hit 5.2%, the highest rate since 2007; 10-year yields are about as high as they've been in more than a year. Many people have exposure to bonds in their retirement accounts. Bond yields also impact the rates on mortgages and business loans. We'll explain. Then, Google's search revenue remains strong — thanks in large part to AI.

The number of hot, dry, windy days is increasing, setting the stage for fires. Wildfire season is off to an awful start. In March, Nebraska had its largest wildfire in state history. Right now, a fire outside of LA is forcing evacuations. While the federal government spends about $3 billion on wildfire suppression each year, most of that is being spent, and states are having to fill the gaps. Also: why Google is "leading the way" in the AI race.