Good Morning! Apple is investing another $100 billion in the U.S. as Trump ramps up pressure to bring supply chains stateside. A 100% tariff on semiconductors is coming, though Apple and Nvidia are exempt after pledging to manufacture domestically.

Duolingo soared 19% after hours, crushing Q2 estimates with 46% growth as AI tools drive user engagement. Spotify jumped on news of international price hikes, while Carlyle saw a 12x jump in exits and +26% in distributable earnings.

Plus: OpenAI is offering ChatGPT access to the federal government for $1, Google is spending $1 billion to teach college students AI, and Gowanus is quietly turning into the next Williamsburg.

There's a new wave of luxury vacation home ownership coming. The leader? Pacaso and their tech for property ownership and management. Learn more.

And, lastly, Endex just raised $14 million from OpenAI’s Startup Fund to bring AI superpowers to Excel. See what they’re building.

SQUEEZ OF THE DAY

Point72’s Party Culture

Steve Cohen’s $40 billion hedge fund is being sued by a former intern who says he was punished for asking for mental health accommodations. 

Andrew Pardo, part of Point72’s 2023 summer intern class, claims he was fired shortly after requesting to be moved to a quieter desk due to PTSD. He says sitting with his back to a busy corridor triggered flashbacks and panic symptoms that impaired his ability to function.

The lawsuit alleges that once Pardo disclosed his diagnosis, the firm viewed him as a liability and moved to terminate him. A spokesperson for Point72 dismissed the claims as “ridiculous and without merit.”

Pardo also claims the firm's culture was very fratty and full of alcohol and pressure to conform. After suffering an episode on his first day, he skipped the intern happy hour, only to find out that "these events were not merely social gatherings. They were informal rites of passage, where interns were expected to consume large quantities of alcohol in the presence of Point72 staff and recruitment personnel.” He also alleges a full-time employee smoked weed with interns during the program.

And one of the more surprising claims accuses Point72 of recruiting “exclusively” through Michigan Interactive Investments," a student-run investing club at the University of Michigan. He claims this leads to a pipeline of “white, wealthy, well-connected students.”

Pardo is reportedly seeking $20 million in damages, though his attorney has clarified that figure is currently a procedural placeholder. On LinkedIn, Pardo described the lawsuit as “one of the most important steps in my life.”

Takeaway: Pardo says he wants the lawsuit to expose Point72’s fratty culture. While some of the claims, such as heavy drinking culture, strong Michigan pipeline, just seem like any other finance firm, New York law is very sensitive to any perceived disability. Let’s see if this ends in a settlement... or just another HR training module.

HEADLINES

Top Reads

• Trump plans 100% semiconductor tariff with certain exemptions (YF)

• Apple to invest another $100B in U.S. as Trump applies pressure (Axios)

• Apple set to dodge bulk of India tariffs (YF)

• Duolingo delivers a blowout quarter (YF)

• Spotify shares jump after company announces price hikes (BB)

• Carlyle revved up buyout exits last quarter, boosting profits (BB)

• US targets Swiss, Indian imports (BB)

• Apollo to buy builder of large scale U.S. data centers (BB)

• OpenAI is giving ChatGPT to the government for $1 (CNBC)

• How Gowanus became the next Williamsburg (6sqft)

• Colorado becomes second state to require pre-merger notifications (Axios)

• Citi boss meets with Trump to pitch Fannie Mae, Freddie Mac offerings (BB)

• Google commits $1B to train US college students in AI over three years (Fox)

• Hulu, Disney+ to merge in 2026 (CNBC)

• Nvidia's 'most underappreciated' business is taking off (YF)

• E.l.f. Beauty’s profits fall 30% as China tariffs weigh on bottom line (CNBC)

• For AI and stock bubbles, the party has to stop sometime (Axios) 

• Truth Social's Perplexity search comes with Trump-friendly sources (Axios)

• Figma had a dazzling IPO. It could have been $3 billion better (WSJ)

• Why Trump doesn't trust jobs revisions, but economists do (WSJ)

• What is wrong with chip stocks this earnings season? (CNBC)

• How to reason with OpenAI’s spiraling valuation (FT)

• Two rate cuts this year would be reasonable: Fed's Kashkari (YF)

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CAPITAL PULSE

Markets Rundown

Market Update

• Markets closed higher, led by strong results from consumer giants, pushing the Nasdaq to record highs.

• Discretionary and staples sectors outperformed; health care and energy lagged.

• Asia rallied, buoyed by India holding rates steady; European retail sales beat expectations.

• The U.S. dollar weakened, while WTI oil slid to its lowest level since early June amid evolving sanctions dynamics.

Economic Data Highlights

• The 10‑year Treasury yield rose to 4.23% following a weaker Treasury auction, though still below its July highs.

• Market pricing now reflects 2–3 rate cuts in 2025—more than what the Fed projects.

• Corporate earnings remain robust: 82% of S&P 500 firms have beaten estimates, average surprise stands at 7.6%, and 2025 earnings growth forecasts have climbed to 10%.

Reported Earnings

• Uber beat expectations with strong earnings, revenue growth, and a massive new stock buyback authorization.

• Shopify delivered another solid quarter—31% revenue growth and maintained free cash flow margins, signaling structural strength across geographies.

• Disney posted rising revenue and EPS, driven by streaming and park performance—highlighting its strategic pivot’s success.

Earnings Today

• Datadog (DDOG) – Monitoring for cloud software adoption trends and profitability outlook.

• Pinterest (PINS) – Key watchpoints include user engagement and ad monetization status.

• Twilio (TWLO) – Investors will focus on communication API demand and operational leverage during H2.

Movers & Shakers

• (+) Match Group ($MTCH) +11% after the dating parent company posted strong earnings.

• (+) Apple ($AAPL) +5% because of a $100B investment in the U.S., and exemptions from Trump tariffs in India.

• (–) Super Micro Computer ($SMCI) -18% after the chipmaker missed earnings.

Private Dealmaking

• Clay, a marketing services startup, raised $100 million

• Rillet, an accounting automation startup, raised $70 million

• Uzum, a food delivery startup, raised $65.5 million

• Alaan, a spend management platform, raised $48 million

• Lyric, a supply chain intelligence platform, raised $43.5 million

• Lumana, a video-security platform for enterprises, raised $40 million

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

BOOK OF THE DAY

The Unexpected Leader

Description: A refreshingly inclusive take on leadership, this book argues that leadership isn’t reserved for the obvious traits or titles—but exists within everyday actions and unassuming people. Baker offers practical strategies and real-world examples to help you spot, develop, and amplify your own leadership in diverse scenarios and unpredictable times.

Rating: Amazon 4.8 / 5

Book Length: 224 pages
Audible Length: Approx. 4 hours

Ideal For: Anyone stepping into new roles—especially individuals overlooked by traditional leadership models—new managers, accidental leaders, and those aiming to lead from the heart rather than the hierarchy.

“Leadership is not a place on a chart—it’s a way of showing up in the world ready to contribute, to serve, to impact.”

DAILY VISUAL

Palantir’s $1 Billion Quarter

Want more? Visualize the markets with Carbon Finance

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“Soon, financial professionals’ work will fundamentally shift from execution to orchestration,” says CEO Tarun Amasa.

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The days of manual Excel work may be numbered. Check out Endex today.

DAILY ACUMEN

Personal Alpha

Markets move in sync. Most people do too.

But alpha—the edge—is found in divergence.

When everyone’s chasing trends, you sit still.
When everyone’s fearful, you lean in.
When the crowd zigs, you zag—with discipline, not contrarian cosplay.

This applies outside the market, too.

The best careers, relationships, and ideas don’t follow indexes.
They follow conviction.

Find your edge. Then keep compounding it.

ENLIGHTENMENT

Short Squeez Picks

• Why rest is the biggest productivity hack for your brain

• How to be the manager employees want to work for

• Your brain speaks three languages

• Ditching “I’m sorry” helps you sound more assertive

• The best time to go to the bathroom on an airplane

MEME-A-PALOOZA

Memes of the Day

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