Good Morning! Retail traders went on a record dip buying spree on Monday, purchasing $4.1 billion of stocks in the first three hours of trading, and reversing a 1% decline in the S&P 500 triggered by Moody’s downgrade.

Blackstone bet big on solar and bought TXNM Energy for $11.5 billion, while Regeneron bought 23andMe out of bankruptcy for $256 million. Jamie Dimon is reversing his course on Bitcoin, and the pros and cons of private equity's 401(k) push.

Plus: AI could end the ETF boom, Costco is limiting gold bar purchases, where Harvard’s private equity will likely end up, and 3 tough questions to ask your boss to boost your career.

Own a piece of the $1.3T vacation home boom–invest in Pacaso before prices rise on May 29.

SQUEEZ OF THE DAY

Lutnick Exits Cantor

The brains behind “Liberation Day,” Commerce Secretary Howard Lutnick has officially cashed out of the Wall Street empire he built over three decades. 

The longtime CEO of Cantor Fitzgerald and newly confirmed U.S. Commerce Secretary just sold his stakes in Cantor, BGC Group, and Newmark Group for a total haul north of $360 million.

The divestment was required under federal ethics rules following his Cabinet appointment. And in classic Wall Street fashion, the move was structured to be tax-efficient: Lutnick reinvested the proceeds into Treasuries and broad-based mutual funds, sidestepping capital gains taxes entirely.

So, who inherits the empire? His sons (who are probably still getting ID’d at bars): Brandon (27) is now chairman of Cantor Fitzgerald, while Kyle (28) serves as executive vice chairman.

Together, they’re running the 14,000-person empire, with three senior deputies helping steer the ship. The rest of Lutnick’s holdings went to private investors led by Josh Harris’ 26North Partners, alongside Oak Hill’s Glenn August.

The younger Lutnicks have their work cut out for them. Cantor is eyeing a bigger push into crypto (partnering with Tether and SoftBank) and is reportedly in talks to acquire UBS’s hedge fund arm, O’Connor. The firm’s also been dangling fat comp packages to lure elite bankers.

Takeaway: A $360M exit, no taxes, a Cabinet seat, and his sons running the shop? Say what you will, but it’s a masterclass in succession, legacy-building, and political maneuvering. Only on Wall Street can you resign and still run the place… just a “few laps” removed.

HEADLINES

Top Reads

• Retail traders go on record dip buying spree (BB)

• 30-year Treasury yield tops 5% Moody's credit rating downgrade (CNBC)

• Blackstone bets on soaring power demand with $11.5 billion TXNM Energy deal (YF)

• Regeneron to buy bankrupt DNA testing firm 23andMe for $256M (CNN)

• JPMorgan changes course on bitcoin (CNBC)

• JPMorgan’s Dimon sees 'extraordinary amount of complacency' in markets (YF)

• NYC leads the pack in post-pandemic return to office (NYP)

• Something 'deeper' is going on in financial markets right now: Citi CEO (YF)

• Risks and rewards for private equity's 401(k) push (Axios) 

• Ray Dalio says the risk to Treasurys is greater than what Moody’s is saying (CNBC)

• How AI could end the ETF boom (Axios)

• Fed’s Bostic says he’s ‘leaning’ toward just one rate cut this year (CNBC)

• China tariffs are no longer 145%, but for small businesses ‘it’s still awful’ (CNN)

• Costco enforces strict limit on gold bar purchases as value increases (Fox)

• Guess where Harvard’s private equity will likely end up (BB)

PRESENTED BY PACASO

Zillow’s Co-Founders’ Next Big Play? Luxury Vacation Home Co-Ownership

After building Zillow into a $16.3B household name, its co-founders quietly launched Pacaso to target their next Golden Goose: The $1.3T vacation home market.

How? By helping wealthy individuals co-own luxury vacation homes, white-gloving the purchase, scheduling, management, and eventual sale. The results are stellar:

• Over 2,000 homeowners so far and $100M+ in gross profits

• $164.5M in 2024 transactions = 18% YoY growth

• Investments from Softbank, Maveron, Greycroft, and others

Now, Pacaso is expanding into global markets, adding new homes in Paris, London, and Cabo.

Don’t miss your chance–get in early and invest today before the price changes on May 29.

CAPITAL PULSE

Markets Rundown

Market Update

• Stocks closed mostly flat Monday after Moody’s downgraded the U.S. credit rating, making it the third major agency to strip the U.S. of its triple-A status.

• The S&P 500 and Nasdaq were little changed, while the Dow rose 0.3%, as defensive sectors like health care and consumer staples led.

• Technology, consumer discretionary, and energy lagged, while bond yields initially spiked but settled, with the 10-year Treasury yield closing near 4.45%.

• Asian markets were mixed, weighed down by Japan’s negative GDP surprise, while Europe closed higher, led by Germany’s record-setting DAX.

• The U.S. dollar strengthened, and WTI oil extended gains, supported by easing trade tensions.

Economic Data Highlights

• Moody’s Downgrade: U.S. long-term rating cut from Aaa to Aa1; outlook revised to stable

• Deficit Warning: Moody’s cited rising debt and interest payments, with limited expectations for fiscal improvement

• Historical comparison: After prior downgrades in 2011 and 2023, bond yields were volatile but eventually declined; equities initially dipped but recovered

• Investor guidance: Emphasize diversified portfolios with overweight positions in equities and intermediate-duration bonds to manage term premium risks

Reported Earnings

• ZIM Integrated Shipping (ZIM) – Reported May 19: Results reflected soft pricing trends; management flagged ongoing margin pressure due to tariffs.

• Trip.com Group (TCOM) – Reported May 19: Beat expectations on domestic travel bookings; international recovery continued to build momentum.

Earnings Today

• Home Depot (HD) – Reporting May 20 (Before Market Open): Focus on DIY vs. pro-spending mix, tariff impact on building materials, and 2025 guidance.

• Palo Alto Networks (PANW) – Reporting May 20 (After Market Close): Investors watching AI-driven product demand, customer retention, and margin expansion.

Movers & Shakers

• (+) Novavax ($NVAX) +15% after the biotech announced a new Covid vaccine.

• (–) Reddit ($RDDT) -5% because the social media platform was downgraded by Wells Fargo.

• (–) First Solar ($FSLR) -8% after a new law could end clean energy tax credits.

Private Dealmaking

• Blackstone Infrastructure bought TXNM Energy for $11.5 billion

• Regeneron bought 23andMe for $256 million

• BioMarin Pharmaceutical bought Inozyme Pharma for $270 million

• CellCentric, an oral cancer drugs developer, raised $120 million

• Akido Labs, an AI assistant for doctors developer, raised $60 million

• Sprinter Health, an at-home health services provider, raised $55 million

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

BOOK OF THE DAY

Chatter

Tell a stranger that you talk to yourself, and you're likely to get written off as eccentric. But the truth is that we all have a voice in our head. When we talk to ourselves, we often hope to tap into our inner coach but find our inner critic instead.

When we're facing a tough task, our inner coach can buoy us up: Focus—you can do this. But, just as often, our inner critic sinks us entirely: I'm going to fail. They'll all laugh at me. What's the use?

In Chatter, acclaimed psychologist Ethan Kross explores the silent conversations we have with ourselves.

Interweaving groundbreaking behavioral and brain research from his own lab with real-world case studies—from a pitcher who forgets how to pitch, to a Harvard undergrad negotiating her double life as a spy—Kross explains how these conversations shape our lives, work, and relationships.

He warns that giving in to negative and disorienting self-talk—what he calls "chatter"—can tank our health, sink our moods, strain our social connections, and cause us to fold under pressure.

But the good news is that we're already equipped with the tools we need to make our inner voice work in our favor.

These tools are often hidden in plain sight—in the words we use to think about ourselves, the technologies we embrace, the diaries we keep in our drawers, the conversations we have with our loved ones, and the cultures we create in our schools and workplaces.

Brilliantly argued, expertly researched, and filled with compelling stories, Chatter gives us the power to change the most important conversation we have each day: the one we have with ourselves.

“An award-winning psychologist reveals the hidden power of our inner voice and shows how to harness it to combat anxiety, improve physical and mental health, and deepen our relationships with others.”

DAILY VISUAL

Robinhood AUM Grows to $220 Billion

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Try Hims today and get free shipping, if prescribed (your partner will thank you).

DAILY ACUMEN

Legends Series: Charlie Munger

Charlie Munger didn’t invest with excitement. He invested with discipline, skepticism, and delay.

As Warren Buffett’s right hand for over 60 years, Munger’s contribution to Berkshire Hathaway wasn’t just financial—it was philosophical.

He taught Buffett to buy wonderful businesses at fair prices, not just fair businesses at wonderful prices.

Munger believed in worldly wisdom—applying mental models from multiple disciplines: psychology, biology, engineering.

He thought deeply, acted rarely, and compounded relentlessly.

In a market chasing AI, IPOs, and speculative turnarounds, Munger would raise an eyebrow.

With consumer confidence falling and earnings beating expectations but with thinner margins, he would ask: Is this sustainable? Or just fashionable?

His famous quote rings loudly in 2025: “It’s not supposed to be easy. Anyone who finds it easy is stupid.”

Munger reminds us that investing isn’t about activity—it’s about clarity. Sometimes, the best move is no move at all.

ENLIGHTENMENT

Short Squeez Picks

• 6 steps to read the room and boost team engagement

• 3 tough questions to ask your boss to boost your career

• How to get your workforce excited about work

• The secret breathing method to boost workouts

• Marijuana hospital visits linked to dementia diagnosis within 5 years

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Memes of the Day

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