Good Morning and Happy Friday! An appeals court allowed Trump’s tariffs to stay in place… for now. Trump and Powell finally met at the White House. And Home sellers now outnumber buyers by the largest margin in 12 years.

Grammarly raised $1 billion from General Catalyst to expand its AI offerings. Victoria’s Secret took down its website after a cyberattack, and United is offering massive discounts on Newark seats.

Plus: Apollo is teaming up with JPMorgan and Goldman to trade private credit, AI is keeping recent grads out of work, and how to master prioritization at work.

Cytonics is developing a drug to tackle joint pain. Learn about their raise and join them as an investor.

SQUEEZ OF THE DAY

The $5B Lesson in Compliance

Tim Leissner, once the face of Goldman Sachs in Southeast Asia, was sentenced to two years in prison for his starring role in the 1MDB scandal, one of the biggest financial frauds in modern history.

Leissner helped arrange $6.5 billion in bond deals for Malaysia’s sovereign wealth fund, raked in $73 million personally, and helped divert over $1 billion in bribes.

Some of that even funded The Wolf of Wall Street. Art imitating life, or the other way around?

The deals brought Goldman $600 million in fees, but also $5+ billion in global fines and a scathing letter from its own board calling it an “institutional failure.” The bank didn’t pull any punches in court either, saying Leissner’s deception lasted “from the day he brought the transactions to the firm through the day he left.”

He faced up to 25 years, but got a lighter sentence after cooperating with prosecutors and testifying against former colleague Roger Ng, who was sentenced to 10 years.

Takeaway: The 1MDB case remains a cautionary tale for every banker who thinks compliance is optional. For Goldman, it cost billions. For Leissner, it cost his career and his freedom. In finance, it’s not always the deal you close that defines your legacy. Sometimes it’s the email you shouldn’t have sent, or the $600 million fee that ends with a sentencing date…

HEADLINES

Top Reads

• Trump tariffs stay in effect as appeals court overrides trade court decision (Fox)

• Fed chair Powell meets with Trump at White House (YF)

• Grammarly gets $1B for AI platform (Reuters)

• Victoria's Secret goes dark after security breach (NYT)

• Elon Musk says he's leaving Washington and DOGE (BBC) 

• Apollo teams up with JPMorgan, Goldman to trade private credit (BB)

• United to discount Newark seats (WSJ)

• MLB bets on women's pro softball (CNBC)

• Home sellers vastly exceed buyers (CNN)

• Costco tops earnings and revenue estimates as sales jump 8% (CNBC)

• JPMorgan hires former HSBC dealmaker to drive EMEA growth (YF) 

• NY Times inks AI deal with Amazon (Verge)

• Unemployment claims are rising (WSJ)

• AI is keeping recent college grads out of work (Axios)

• Obscure item in Trump tax bill stokes Wall Street angst (YF)

• NYC offers 100+ free workout classes throughout the boroughs (NYP)

PRESENTED BY CYTONICS

This Startup Could Do for Joint Pain What Ozempic Did for Weight Loss

Osteoarthritis affects over 30 million Americans, yet nearly all treatments just mask the pain. Cytonics is doing something different: it’s developing a drug that targets the actual cause of joint damage.

Their therapy, CYT-108, is designed to block the enzymes that eat away at cartilage, potentially stopping osteoarthritis before it gets worse and encouraging cartilage repair.

They’ve already raised $25M+ from “everyday” investors (no VC or Big Pharma). And with early clinical trials now underway, Cytonics could be positioned at the forefront of a new generation of treatments for joint degeneration.

This is your chance to invest* in a startup aiming to rewrite the playbook on pain.

CAPITAL PULSE

Markets Rundown

Market Update

• Stocks rose Thursday after two federal courts ruled against President Trump’s authority to impose tariffs announced in April.

• Technology and communication services led gains, while utilities and health care underperformed.

• Markets now look to today’s PCE inflation report, a key data point for the Fed's next move.

Economic Data Highlights

• Tariff Rulings: Two courts ruled that Trump lacked authority for certain tariffs under the IEEPA. Appeals are underway; one ruling has been stayed.

• Initial Jobless Claims: Increased to 240,000 (vs. 226,000 expected); continued claims rose to 1.92 million.

Reported Earnings

• Best Buy (BBY): Posted slightly better-than-expected results; electronics demand remains soft but improving.

• Costco (COST): Delivered strong membership and traffic trends, though gross margin guidance was conservative.

• Marvell Technology (MRVL): Beat expectations; AI and networking segments showed solid growth.

Earnings Today

• No significant earnings reports scheduled.

Movers & Shakers

• (+) E.l.f. Beauty ($ELF) +24% after the beauty retailer posted strong earnings; announced acquisition of Hailey Bieber’s company.

• (+) C3.ai ($AI) +21% because the AI company announced strong earnings.

• (–) Best Buy ($BBY) -7% after the retailer reduced its outlook on tariff angst.

Private Dealmaking

• CMB Tech acquired Ocean Group for $1.5 billion

• Brookfield Asset Management and CDPQ bought Antylia Scientific for $1.34 billion

• Leidos acquired Kudu Dynamics for $300 million

• Radiant, a nuclear microreactors maker, raised $165 million

• Hex, an SF-based data analytics workspace, raised $70 million

• CloudZero, a cloud cost optimization startup, raised $56 million

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

BOOK OF THE DAY

Undeniable

Endure, Cameron Hanes’ New York Times bestselling book, demonstrated how to push beyond your physical limits to improve yourself. 

In Undeniable, Hanes brings together outliers of today―men and women who are experts in their field―to share their unique and motivating perspectives on reaching the pinnacle of success and remaining there.

From popular neuroscientist Andrew Huberman to ultramarathon runner Courtney Dauwalter, you will hear how undeniable individuals have obtained their winning mindset.

Many books show how to pursue a dream and successfully make it happen, but few spotlight what to do when you’ve reached the pinnacle. After fighting so hard and reaching your goals, how do you stay on top?

In his pursuit for greatness, Cam has trained with and interviewed track athletes, MMA fighters, NFL Super Bowl champions and experts in other disciplines. All of them legends who have earned their names. What makes them tick? How do they remain undeniable?

In Undeniable, Cam reveals the lessons he has learned from truly exceptional people. By examining their unique traits and abilities, you will earn an edge from these greats and add tools on your own journey toward greatness.

“You become the best you can be by learning from others. That is how bowhunter and ultramarathoner Cameron Hanes approaches each day in his pursuit of greatness in this essential guide to finding success.”

DAILY VISUAL

Costco’s Gas Station Empire

PRESENTED BY HEBBIA

“The Rolls Royce of AI”

Finance professionals need tools that work as hard as they do. Hebbia’s Matrix delivers powerful solutions to streamline your workflow and give you a competitive edge. Here’s how top firms use Hebbia:

• Summarize 200+ earnings calls annually without breaking a sweat.

• Review offering memorandums 5x faster to keep pace with changing markets.

• Identify red flags, compare risks, and extract critical terms in minutes.

• Turn diligence notes into IC-ready investment memos.

Whether you’re tracking opportunities, managing risk, or drafting IC memos, Hebbia helps finance, real estate, and legal teams get more done in less time, without sacrificing quality.

DAILY ACUMEN

Habits

Habits aren’t just buzz—they’re a neuroscience-backed path to lasting change.

A habit follows a simple loop: a cue (like bedtime) triggers an action (brushing your teeth), followed by a reward (feeling fresh).

At work, consistent habits—like a regular sleep schedule or daily check-ins with your boss—build the foundation for big achievements, like landing a promotion.

But habits aren’t magic; they need purpose and discipline, not just repetition, to align with your goals.

Forming good habits leverages neuroplasticity, making routines automatic over time, while breaking bad ones involves adding friction and finding better alternatives, like swapping phone scrolling for journaling.

In the markets—and in life—tiny behaviors compound.

Investors automate contributions.

Athletes trust their routines.

Builders win not by bursts of brilliance, but by stacking small, smart decisions.

The takeaway?

You don’t rise to the level of your goals.

You fall to the level of your systems.

Make sure yours are built to last.

ENLIGHTENMENT

Short Squeez Picks

• The 4-word sleep trick that stops 3am overthinking

• Is your brain biased to negativity?

• The psychology of getting passed

• How vagus nerve simulation reverses PTSD

• How to master prioritization at work 

MEME-A-PALOOZA

Memes of the Day

📣 Partner With Us: Get in front of an audience of over 1 million finance professionals, business leaders, and policy influencers. Submit a partnership inquiry.

📈 Grow With Us: Work directly with the Overheard on Wall Street team to scale your finance brand. Schedule your free consult.

🔒 Short Squeez Premium – Insiders: Access exclusive content, including investment analysis, wellness features, career tools, and our full recruiting resource library. Upgrade to Premium. 

🧢 Wall Street Shop: Explore our collection of finance-themed apparel and merchandise. Visit the shop.

📬 Deals Newsletter – Buysiders: A curated roundup of major M&A, private equity, and VC activity. Plus access to private deal flow. Subscribe here.

🏠 Real Estate Newsletter – City Squeez: Latest news and exclusive listings for those looking to buy, rent, or invest in real estate around the world. Sign up here.

📚 Courses: Level up with our excel, modeling, and private equity courses. View offerings.