Good Morning! Cybersecurity stocks tanked after Anthropic unveiled Claude Code Security, with CrowdStrike and Cloudflare down 8%+. Equinox’s chairman says its $40K annual membership has a 1,000+ person waitlist. Goldman launched an S&P ex-AI index, SPXXAI, for investors who want the benchmark without AI exposure.

Evercore’s Rich Ross is dropping hip-hop-infused research notes like “CapEx Gon’ Give IT to Ya” and “30 Yr Mortgage: Shawty Get LOW LOW LOW.” JPMorgan closed Trump’s accounts a month after Jan. 6. And KKR and a16z-backed Cross River Bank is eyeing an IPO.

Plus: Centerview settled its suit over junior banker hours. OpenAI is targeting $600B in compute spend by 2030, and how to overcome public speaking fears.

Don’t let your model get in the way of a snow day. Build your model quickly and thoroughly with Endex. 

SQUEEZ OF THE DAY

The Tariff Machine Broke

The Supreme Court dealt a 6–3 blow to President Donald Trump’s tariff regime on Friday. And, within 24 hours, Trump responded by raising a new global tariff to 15%.

In a majority opinion written by Chief Justice John Roberts, the Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. IEEPA allows presidents to regulate certain economic transactions after declaring a national emergency, but it does not explicitly mention tariffs, and before Trump, no administration had used it that way.

The Court’s logic was straightforward: the Constitution gives Congress the power to tax, tariffs are taxes, and if the president wants sweeping tariff authority, Congress must clearly grant it. 

Markets initially cheered the ruling as a step toward predictability, with import-heavy sectors hopeful tariff policy will be constrained by statute rather than executive action.

But the legal fallout has enormous fiscal implications: estimates from the Penn-Wharton Budget Model suggest that up to $175 billion in tariffs collected under IEEPA could now be subject to refund claims, creating one of the largest potential repayment exposures in U.S. trade history. Hundreds of companies have already signaled intentions to sue for refunds.

Trump didn’t retreat and, after the ruling, he reinstated a 10% global tariff under Section 122 of the Trade Act of 1974, then raised it to 15% the next day. Section 122 allows tariffs of up to 15% for 150 days to address balance-of-payments concerns,  after which the administration says it will pivot to Section 301, a more durable pathway that requires formal investigations into unfair trade practices.

Takeaway: The Supreme Court has drawn a clear line limiting the president’s ability to impose tariffs on his own, pushing the administration to rely on temporary laws passed by Congress. For markets, the issue is no longer whether tariffs will exist, but how stable the legal framework behind them will be.

PRESENTED BY ENDEX

Snow Day with Endex

This weekend’s storm put 35+ million people under blizzard warnings and grounded 6,000+ flights.

Your model still has to be complete.

Endex, OpenAI’s Excel agent, executes day-to-day workflows such as DCFs, comps, and sensitivity analysis alongside your team. You are always running at full capacity, whatever the day looks like.

HEADLINES

Top Reads

• Cyber stocks slide as Anthropic unveils Claude security tool (BB)

• Equinox's $40,000-a-year membership has a waiting list (CNBC)

• Goldman Sachs launches an AI-free index (Axios)

• Wall Street analyst spins hip-hop infused notes (Axios)

• VC-backed Cross River Bank eyes IPO (Axios)

• Jun 2028 - S&P down 38% from highs - AI exceeded every expectation (Citrini)

• JPMorgan says it closed Trump's accounts a month after Jan. 6 attack (YF)

• Centerview settles suit over young banker hours (WSJ)

• OpenAI targets $600B in total compute spend by 2030 (CNBC)

• Q4 U.S. GDP up just 1.4%, badly missing estimate; inflation firms at 3% (CNBC)

• The bond market’s ‘quiet stabilizer’ is fading, and Treasurys face the most risk (CNBC)

• Bath & Body Works starts selling on Amazon (CNBC)

• Blue Owl sold private loans to pension giants and own insurer (BB)

• Ex-Googlers charged with stealing phone processor secrets (BB)

• Oil prices jump and gold hits $5k as tensions ramp up between Iran and the US (CNN)

• Big Tech’s soaring spending on AI is eating into stock buybacks (BB)

• NJ Transit riders see simple commutes turn into crowded slogs (BB)

• World’s biggest PE houses struggle to exit China deals (FT)

CAPITAL PULSE

Markets Rundown

Market Update

• U.S. equities reversed early losses and closed higher after the Supreme Court struck down President Trump’s global tariffs

• Retail and technology stocks led gains

• Treasury yields moved modestly higher; the U.S. dollar declined

• Court ruled 6–3 that emergency powers were exceeded; refund question, potentially $170B, sent to lower courts

• Administration announced a temporary 10% global tariff under Section 122, with potential action under Sections 301 and 232, then raised it to 15% over the weekend

Economic Data Highlights

• Q4 GDP rose 1.4% annualized, below expectations for 2.8%, partly impacted by the shutdown

• Full-year 2025 GDP still grew a solid 2.2%

• Core PCE (Dec) rose 0.4% MoM, 3.0% YoY, highlighting lingering inflation pressure

Geopolitical Developments

• Reports suggest the U.S. may consider limited action against Iran if nuclear negotiations stall

• WTI crude near $66, recently at six-month highs, but still near the low end of its five-year range

• EIA indicates global oil oversupply expected to persist through 2026

• Historically, geopolitical flare-ups have produced limited and short-lived market effects

Sector Trends

• Technology sentiment stabilized ahead of Nvidia’s earnings (Feb 25)

• Software sector weight in the S&P 500 has fallen sharply from ~12% to just above 8% amid AI disruption concerns

• Valuations in parts of software may now reflect significant pessimism

• Broader 2026 theme remains pro-cyclical rotation, though tech rebounded today

Movers & Shakers

• (+) Celsius ($CELH) +9% after the energy drink company provided upbeat commentary to investors.

• (+) Opendoor ($OPEN) +8% because the real estate company beat earnings.

• (–) CoreWeave ($CRWV) -8% after its AI data center deal with Blue Owl fell through.

Prediction Markets

• Isn’t ICE taking care of the aliens already?

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

Private Dealmaking

• Taalas, a chipmaker, raised $169 million

• Code Metal, a code translation startup for defense industries, raised $125 million 

• Render, a cloud infrastructure platform, raised $100 million

• Jump, an AI meeting assistant for financial advisors, raised $80 million

• Freeform, a 3D-printing metal manufacturing company, raised $67 million

• TRex Bio, a biotechnology company developing precision immunoregulatory medicines, raised $50 million

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

BOOK OF THE DAY

Master Your Money, Secure Your Future

Description: A grounded, practical personal finance guide that speaks to everyday money challenges without all the jargon. Butler and Butow walk readers through budgeting that works, smart debt management, understanding insurance and investing options, and planning for major life stages like home buying, family growth, and retirement. Each chapter ends with clear action steps so readers can turn insight into financial progress.

Book Length: 272 pages
Release Date: November 18, 2025

Ideal For: Anyone seeking a realistic, step-by-step roadmap to financial confidence, security, and long-term well-being.

“You don’t need to be wealthy to master your finances, you just need a plan that works.”

DAILY VISUAL

Peanut Butter Leads the Sauce Rally

PRESENTED BY STELRIX

The Financial Tool Family Offices Have Used for Decades

Wealth doesn't liquidate to cover expenses. It borrows against itself.

Family offices and private banking clients have accessed capital this way for generations, using their portfolios as collateral while keeping investments intact and compounding. Traditional securities-backed lines require $100,000 minimums and weeks of underwriting, keeping this approach exclusive to institutional relationships.

Stelrix built that same infrastructure into a sleek gold card that connects directly to your existing brokerage. Your holdings stay exactly where they are, generating returns while you access spending power in real time. Limits adjust automatically based on your portfolio value, and pricing reflects actual risk rather than arbitrary credit scoring.

Reserve your gold card today.

DAILY ACUMEN

Inaction

Daniel Kahneman spent decades studying what makes people miserable. His conclusion surprised him: it's not failure. It's inaction.

The things we did wrong fade. The things we never did haunt us. People regret the business they didn't start far more than the one that failed. The conversation they never had more than the awkward one they did.

This asymmetry changes the math on risk. Action has two outcomes: success or a story. Inaction has one outcome: a quiet, persistent ache that follows you to the end.

The fear of failing is loudest right before you start and almost silent a year later. The regret of never trying starts quiet and grows louder every year.

Do the math and then make the call.

ENLIGHTENMENT

Short Squeez Picks

• How to get 100% cashback

• Why are people starting to sound like ChatGPT?

• 3 small changes that turn your calendar into a killer productivity tool

• 7 kinds of rest other than sleep

• The pros and cons of workplace protectionism

• How to overcome common public speaking challenges

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.