Good Morning! Spirit Airlines will avoid liquidation after striking a deal in its second bankruptcy. JPMorgan CEO Jamie Dimon said AI fears that hit the bank’s stock Monday were overblown. And a Harvard-led study finds AI can predict 71% of active fund trades.

Jane Street was accused of insider trading tied to the collapse of Terraform. Bitcoin is on pace for its worst month since the 2022 crypto crash. And the Pentagon warns it may sideline Anthropic if the company refuses to ease its AI guardrails.

Plus: A top Wall Street regulator says firms that self-report misconduct can avoid prosecution, and is the MBA still worth it?

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SQUEEZ OF THE DAY

NYC’s $1 Coffee Era is Over

In Midtown Manhattan, even the last affordable luxury is getting repriced. The iconic sidewalk carts that once defined the city’s $1 caffeine culture are now charging $1.50 to $2 for a small, and as much as $2.50 for a large. For years, they undercut chains and bodegas, but now they’re simply trying to stay afloat.

Vendors insist that they need to increase prices to stay afloat. A pound of 100% ground roast coffee has climbed from about $4.10 in January 2020 to more than $9 as of January 2026, a 124% increase in six years.

The drivers are global and include droughts in Brazil and Colombia, supply-chain issues, a 10% tariff that still applies to Colombian coffee, and higher labor and permit costs in New York.

One Midtown operator said his three-pound tub of Kirkland Colombian coffee has risen from under $10 in 2020 to more than $22 today. 

Another vendor outside JPMorgan’s Park Avenue tower raised small coffees from $1.50 to $2 last year and says sales have taken a noticeable hit, forcing her to cut into her own take-home pay.

Coffee carts were the anti-Starbucks, the blue-cup alternative to $5 lattes. Even now, at $2, they’re still cheaper than chains charging $4 to $6. But psychologically, crossing from $1 to $2 changes behavior. Some commuters say they’re going back to brewing at home. Others are cutting down to one cup a day.

Several vendors report slipping volumes since the hikes. These are thin-margin businesses with little pricing power to flex. Some operators have held off raising prices further out of fear of losing construction workers and regular office customers who rely on them.

Takeaway: In Midtown, the dollar coffee era is over. New York’s $1 coffee was one of the last everyday inflation holdouts, but it goes to show a sidewalk cart in Times Square is indirectly exposed to South American rainfall and Washington tariff decisions. Inflation has officially reached the blue cup.

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HEADLINES

Top Reads

• Spirit Airlines avoids liquidation after second bankruptcy (Axios)

• Anthropic links AI agent with tools for investment banking, HR (BB)

• Harvard-led study says AI can predict 71% of active fund trades (BB)

• Jane Street accused of insider trading that helped collapse Terraform (WSJ)

• Bitcoin set for worst month since crypto collapse of 2022 (YF)

• Jamie Dimon dismisses fears over how AI will hit JPMorgan (WSJ)

• Pentagon threatens to make Anthropic a pariah if it refuses to drop AI guardrails (CNN)

• Wall Street cop says self-reporting firms can avoid prosecution (BB)

• Trading volumes have surged in leveraged funds, options since the pandemic, data shows (CNBC)

• US software stocks climb as Anthropic announcement sparks relief rally (YF)

• From Jamie Dimon’s ‘cockroaches’ to the Blue Owl freeze: how stress is spreading in private credit (CNBC)

• Deutsche Bank downgrades private credit poster child Blue Owl after recent sell-off (CNBC)

• Goldman Sachs is set to move into Credit Suisse’s iconic Milan HQ (BB)

• How staying small became AI startups’ biggest flex (WSJ)

• Epstein lurked at JPM for years after bank kicked him out (YF)

• AI chip startup MatX raises $500 million to compete with Nvidia (BB)

• Citrini founder shocked his AI prediction spurred stocks selloff (BB)

• How insurance became the lifeblood of private credit (FT)

CAPITAL PULSE

Markets Rundown

Market Update

• Major U.S. indexes finished higher as technology sentiment stabilized

• AMD surged roughly 8% after announcing a multiyear partnership with Meta

• Software stocks rebounded as Anthropic positioned new AI tools as complements rather than replacements

• 10-year Treasury yield held near 4.03%, supported by safe-haven demand

• Oil prices remained near seven-month highs amid rising U.S.–Iran tensions

Sector Trends

• Technology led gains after recent sharp drawdowns

• S&P 500 software remains down roughly 32% from its October peak, despite today’s bounce

• Ongoing AI disruption fears continue to pressure valuations across parts of tech

• Rotation into energy, materials, consumer staples, and industrials continues to support broader market resilience

Macro & Policy Developments

• Supreme Court tariff ruling continues to create policy uncertainty

• U.S. Customs and Border Protection implemented a new 10% global tariff, below the previously pledged 15%

• Administration continues exploring alternative legal paths to reinstate broader tariffs

• Lower effective tariff rates could provide short-term fiscal support, though uncertainty may delay business spending

Earnings

• Focus turns to NVIDIA, reporting today after the close

• Investors watching closely for updates on AI capex, demand trends, and forward guidance

• AI remains the key sentiment driver for both tech leadership and broader market direction

Movers & Shakers

• (+) Keysight ($KEYS) +23% after strong AI infrastructure demand; upgrades by BofA and UBS.

• (+) Advanced Micro Devices ($AMD) +9% because Meta signed an up to $60B AI chip deal.

• (–) Planet Fitness ($PLNT) -9% after the gym chain issued weak outlook.

Prediction Markets

• It’s America’s “Golden Age”, alright.

• Trade on real-world events with Kalshi. Use code OWS to get a $10 bonus when you trade $10.

Private Dealmaking

• CECO Environmental will acquire Thermon Group Holdings for $2.2 billion

• Axelera AI, a Netherlands-based semiconductor company, raised $250 million

• Slate Medicines, a migraine and headache drug developer, raised $130 million

• Profound, a New York-based agentic marketing startup, raised $96 million

• Humand, an HR platform for deskless workforces, raised $66 million

• Entire, an AI coding startup, raised $60 million

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

BOOK OF THE DAY

The Way of Excellence

Description: A thoughtful, evidence-inspired guide to pursuing what matters most in an age of distraction and pressure. Stulberg blends modern science, ancient philosophy, and real-world practice to show that excellence is not hustle and intensity but focused engagement with what aligns with your values. Instead of chasing superficial wins, the book helps you cultivate durable confidence, deep satisfaction, and a life shaped by intentional growth.

Book Length: 288 pages
Release Date: January 27, 2026

Ideal For: Leaders, creators, professionals, and anyone looking to live with purpose, resilience, and meaningful progress in a chaotic world.

“Excellence is not a finish line but the way we show up to the process of becoming our best.”

DAILY VISUAL

The NFL Is a Different Asset Class

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DAILY ACUMEN

Standards

A single exception becomes a pattern faster than you think. You skip one workout because you're tired. Then two. Then skipping becomes the default and going becomes the exception.

You let one meeting run over your protected focus time. Then all of them do. You compromise on one hire. Then mediocrity sets the new standard.

The Stoics called this "the discipline of assent." Every time you accept something you said you wouldn't, you're not just making one decision.

You're revising your identity. Your standards aren't what you write in a journal.

They're the floor you refuse to go below, especially when no one is watching and especially when you're tired. Guard that floor.

ENLIGHTENMENT

Short Squeez Picks

• How engaging with art can improve your health

• How to read people and master your body language at work 

• How to improve your grip strength 

• Steve Jobs on the difference between loving your work and burning out

• Does ROI add up for the MBA?

MEME-A-PALOOZA

Memes of the Day

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