Good Morning! Stocks rallied after April inflation came in cooler than expected, helping the S&P 500 erase all of its 2025 losses. The dollar climbed too, while Trump took to Truth Social to urge ‘Too Late Powell’ to cut rates.

The White House announced a $600 billion Saudi investment during Trump’s visit. Nvidia soared back above a $3 trillion valuation on a new chip deal with Saudi Arabia. JPMorgan is closing in on becoming the first $1 trillion bank, and UnitedHealth’s CEO stepped down unexpectedly.

Plus: Airbnb now lets you book a chef or personal trainer, Starbucks launched a $44 drink, and why money inertia might be the most underrated force in investing.

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SQUEEZ OF THE DAY

Blackstone Seeks $5.6B to Back PE Firms

Blackstone is looking to raise at least $5.6 billion for its latest GP stakes fund, a vehicle that takes minority stakes in private equity firms themselves. The target matches its 2021 predecessor and comes as dealmaking and fundraising remain sluggish across the industry.

With exits still slow and dry powder piling up, some PE firms are turning to GP stake sales to return capital to LPs, expand into new markets, or diversify strategies.

For buyers like Blackstone, it’s a steady stream of management fees and carried interest, without having to source individual deals.

The firm moved its GP stakes strategy under its secondaries platform last year and handed the reins to Josh Blaine. It typically targets managers with $5B+ in AUM and already owns stakes in firms like GTCR, Leonard Green, and Nautic Partners.

As the space heats up, rivals like Blue Owl and Goldman’s Petershill are circling too. A recent McKinsey report found that 43% of PE investors now allocate capital to GP stakes, making it one of the more resilient corners of a still-chilly private markets landscape.

Takeaway: When deal flow dries up, Blackstone starts buying the dealmakers. GP stakes are the perfect “picks and shovels” play, a way to profit from the private equity ecosystem without betting on any one fund or exit. In a market where everyone’s struggling to raise capital, Blackstone’s move says one thing: if you can’t find good deals, invest in the people who always get first dibs.

HEADLINES

Top Reads

• S&P 500 erases 2025 losses (YF)

• Inflation cooler than expected in April, despite tariff hikes (Axios)

• Digital banking startup Chime files for US IPO (YF)

• Microsoft is cutting 3% of workers across the software company (CNBC)

• Trump tariff relief leads to dollar rebound (Axios)

• You can now book a chef or personal trainer with Airbnb (CNN)

• Google backs Saudi AI fund as Trump, MBS tout new investments (YF)

• The most expensive Starbucks drink costs almost $45 (NYP)

• Wells says JPMorgan could become world’s first $1 trillion bank (YF)

• Toyota to launch revamped EV (CNBC)

• Live Nation bets big on Atlanta (WSJ)

• $100M New Jersey deli fraudsters father and son sentenced to prison (CNBC)

• Main Street optimism dropped in April as trade tensions ramped up (Axios)

• Nvidia rejoins $3T club after trade news (YF)

• UnitedHealth CEO steps down, company cuts guidance (CNBC)

• DC’s DOGE recession is fast approaching (Axios)

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CAPITAL PULSE

Markets Rundown

Market Update

• Stocks closed higher Tuesday after April’s CPI inflation report came in cooler than expected, lifting the S&P 500 by 0.7%.

• The index is now flat year-to-date and sits just 4% below its February all-time high.

• Technology and consumer discretionary stocks led, while defensive sectors like health care lagged — the latter pressured by news that UnitedHealth’s CEO will step down.

• Asian and European markets also advanced, aided by improved German sentiment data and easing global inflation fears.

• Bond yields rose modestly, with the 10-year Treasury yield hitting 4.48% and the 2-year edging above 4%.

Economic Data Highlights

• Headline CPI (Apr): +0.2% MoM / +2.3% YoY – below expectations

• Core CPI (Apr): +0.2% MoM / +2.8% YoY – 3-month annualized now at 2.1% (lowest since July 2024)

• Durables inflation: +0.2% – minimal tariff effect observed so far

• Services inflation: +0.4% – largest contributor to the monthly gain

• 10-year breakeven inflation rate: Stable – market inflation expectations remain anchored

• Fed outlook: 2 rate cuts priced in for 2025 – still seen as reasonable baseline

Reported Earnings

• Berkshire Hathaway (BRK.B) – Reported May 13: Earnings met expectations; focus remains on record cash reserves, disciplined buybacks, and solid insurance performance.

• Under Armour (UA) – Reported May 13: Results came in below expectations; guidance lowered amid ongoing restructuring efforts and weaker demand in Asia.

• Nu Holdings (NU) – Reported May 13: Beat expectations on customer growth and revenue; expansion across Latin America remains a key growth driver.

Earnings Today

• Sony Group Corporation (SONY) – Reporting May 14: Sony is set to release its quarterly earnings report today. Investors are anticipating updates on its entertainment and gaming divisions, as well as any impacts from recent tariff changes.

• Cisco Systems, Inc. (CSCO) – Reporting May 14: Cisco will announce its quarterly earnings today. Analysts are looking for insights into the company's performance in networking and security segments, and any developments in AI infrastructure.

Movers & Shakers

• (+) Coinbase ($COIN) +24% after the crypto exchange will be added to S&P 500.

• (+) Nvidia ($NVDA) +6% because the chipmaker reached a deal to sell chips to Saudi Arabia

• (–) UnitedHealth Group ($UNH) -18% after a surprise CEO exit; pulling annual forecast.

Private Dealmaking

• Addepar, a wealth management software provider, raised $230 million

• Stash, an investing and savings platform, raised $146 million 

• PhaseV, a clinical trial startup, raised $50 million

• TSOLife, a senior living operators platform, raised $43 million

• Optimal Dynamics, a decision intelligence platform, raised $40 million 

• Amilia, a software provider, raised $35 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

Who Knew

Writing in his singular voice, Barry Diller delivers an astute business memoir, an unvarnished look at Hollywood, a primer on media, and a surprisingly frank coming-of-age story.

“I want to work in the mail room at William Morris.” So begins Diller’s show business life. Diller did not aspire to be an agent, nor was he a glove fit for William Morris, the legendary talent agency he describes as resembling a “Jewish Vatican.” But he was a good assistant and student and took it all in.

Diller’s media savvy changed the course of American culture. His championing of Alex Haley’s Roots put long-form miniseries on the map.

He was never cowed by the talent—actors, directors, and producers—and worked with them all. Indeed, throughout his career, Diller championed “creative conflict,” encouraging argument in every business he managed (“I’ve never thought decision-making should be peaceful,” he writes).

Diller also recognized our digital future, founding IAC and growing it into a billion-dollar constellation of brands, including Match, Tinder, and Expedia.

Moving beyond business, Diller recounts his family life, personal struggles, and regrets, his joyful marriage to Diane von Furstenburg, and where he has found fulfillment.

Intimate, candid, and moving, Who Knew is a different kind of business memoir, one that holds nothing back.

“Because he is a taskmaster and a visionary and a billionaire, people in Hollywood and Silicon Valley pay close attention when he speaks.”

DAILY VISUAL

Sit Back and Dividend

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DAILY ACUMEN

Legends Series: Paul Tudor Jones

Paul Tudor Jones didn’t predict the 1987 crash by luck—he saw the pattern unfolding.

Studying market cycles, investor psychology, and historical crashes, Jones concluded that October 1987 was shaping up to be a repeat of 1929.

Just before Black Monday, he loaded up on short positions.

When the Dow plummeted 22% in a single day, Jones’ fund didn’t flinch—it tripled.

That trade cemented Jones’ reputation as one of the greatest risk managers alive.

His firm, Tudor Investment Corp, has delivered over 19% annualized returns for more than four decades by combining macro forecasting with technical analysis.

Jones believed in watching the tape. Charts. Momentum. Sentiment shifts. And above all, history.

Paul Tudor Jones would be watching the rhythm beneath the numbers. Not just what moved—but how it moved. 

His lesson for today’s investor? Don’t just ride trends—recognize when they break.

Prepare for reversals. Understand that history doesn’t repeat, but it rhymes.

And when panic arrives—act with clarity while others freeze.

ENLIGHTENMENT

Short Squeez Picks

• How to simplify your to-do list

• How integrity boosts productivity 

• Why money inertia is the most powerful investing force

• Goal setting for productivity

• Why humility is a superpower

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Memes of the Day

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