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4 days ago
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Investors were looking for relief from tariffs. Instead, they got more uncertainty.
This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here. Happy Friday! Have you ever watched a documentary and wondered, How did they get that footage? Jake Gabbard, a BI video producer, described spending two weeks filming the Army's grueling mountain warfare school in Vermont. (The end result, which shows soldiers being trained on mountaineering, cold-weather skills, and high-elevation tactics, is worth a watch, too.) In today's big story, a federal court's ruling against President Donald Trump's tariffs doesn't mean the markets are in the clear. What's on deck Markets: An exclusive interview with Wall Street's Dr. Doom about his early success as a money manager. Tech: Take a look at how much Walmart has previously spent on Azure cloud services. Business: Airbnb CEO Brian Chesky explains why understanding the differences between founders and managers is key. But first, it's all still a bit unclear.A federal court halting the tariff strategy that has tortured the market this year isn't a silver bullet for investors. Major indexes jumped Thursday morning thanks to the US Court of International Trade ruling that President Donald Trump didn't have the power to impose some of his wide-reaching tariffs. Whiplash ensued less than 24 hours later when an appeals court reinstated the tariffs while it reviewed the administration's arguments. Even if Trump's tariffs are ultimately ruled illegal, the risk of a trade war remains. After Wednesday's initial ruling, experts told BI's Christine Ji that Trump has other options that could further sow chaos in an already wild trading environment. Importantly, the entire episode demonstrates the ongoing uncertainty around an issue that has weighed heavily on the market. The constant threat and subsequent pullback of tariffs have proved a challenge for investors in recent months. Citadel's Ken Griffin went as far as saying you'd have been better off keeping your money on the sidelines, which is not the type of thing people who manage money for a living often suggest. Donald Trump, as always, is another X factor. One immediate solution for continuing his trade agenda could be the Trade Act of 1974. I'm sure you're well-versed on that US legislation, but if you aren't, it allows the president to impose tariffs up to 15% for 150 days. If Trump continues his tariff fight in the courts, that'll further complicate trade negotiations. Will a trading partner take the president's threat of tariffs seriously if he might not even have the authority to implement them? Stephanie Roth, chief economist at Wolfe Research, also highlighted to Christine the recently popular TACO trade — Trump Always Chickens Out — as another variable. The notion that he won't commit to harder tariffs, along with the court ruling, could push Trump to double down on his agenda. "There's a possibility he attempts to do some sort of surprise," Roth told Christine. 1. Wall Street's Dr. Doom takes on money management. Bearish economist Nouriel Roubini launched America Atlas Fund in November. Since its inception, the fund is up 4%, outperforming the S&P 500. Here's how it resists volatility. 2. Goldman Sachs is on defense as it faces "disruptive policy" shifts. Amid President Trump's trade war and policies, Goldman President and COO John Waldron said the bank is tamping down risk. For him, tariffs are just one piece of the puzzle, though. 3. What top Tesla investors want from Elon Musk. Now that Musk is leaving Washington, a group of the EV maker's investors drafted a list of requests for the tech billionaire. Items include a 40-hour-per-week commitment to the company and a CEO succession plan. 1. Cleaning up "The Everything Store." A document revealed Amazon's plan — discreetly called the "Bend the Curve" program — to purge at least 24 billion unique product listings from its marketplace. Axing underperforming items can save the company millions in server costs. 2. Microsoft and Walmart are cozier than previously thought. Last week, Microsoft's AI security head accidentally leaked details about its partnership with Walmart. Then, a separate document viewed by BI shows Walmart has spent about $580 million on Microsoft Azure's cloud services between June 2023 and May 2024, which could make it one of Microsoft's biggest cloud customers. 3. One of Nvidia's most important numbers doesn't have a $ attached. Token growth lets the chip giant know how much people are actually using AI and, therefore, its chips. It was a big propeller of Nvidia's Q1 earnings beat, but it's also pretty tricky to track. 1. Mark Zuckerberg and Palmer Luckey are cool now. The foes-turned-friends are teaming up for a US military project, building extended reality gear for soldiers. The Meta-Anduril system, Eagle Eye, will use AI and sensors in headsets and other wearables to enhance vision, Luckey said. 2. How is a business like a baby? Founders are like parents, Airbnb CEO Brian Chesky said on a recent podcast appearance. Chesky said founders have the authority to make big changes and know their metaphorical business baby better than anyone. They also run into two big challenges. 3. The Great Flattening isn't confined to Big Tech. As companies face recession fears and tariff uncertainty, middle managers are at risk. Amazon and Google already announced plans to cut thousands of workers, and now retailers like Walmart are aiming to "remove layers and complexity." Costco is taking a page from Sam's Club's playbook to speed up checkout at warehouses. Tiger Global, more than two years removed from its 56% loss in 2022, walks investors through what's changed — and compares the firm to Rory McIlroy. Starbucks is scaling back one of its popular point perks. Reid Hoffman says AI can't be your friend — and pretending it can is harmful. The taboo colon cancer symptom millennials are afraid to tell their doctors about. At Diddy trial, his consensual-sex defense is undercut by a personal assistant's wrenching rape testimony. Elon Musk's right-hand man is leaving DOGE, too. President Trump delivers remarks at US Steel Corporation Irvin Works. US Commerce Department releases Advance Economic Indicators Report. The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago. 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4 days ago
- Business
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Investors were looking for relief from tariffs. Instead, they got more uncertainty.
This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here. Happy Friday! Have you ever watched a documentary and wondered, How did they get that footage? Jake Gabbard, a BI video producer, described spending two weeks filming the Army's grueling mountain warfare school in Vermont. (The end result, which shows soldiers being trained on mountaineering, cold-weather skills, and high-elevation tactics, is worth a watch, too.) In today's big story, a federal court's ruling against President Donald Trump's tariffs doesn't mean the markets are in the clear. What's on deck Markets: An exclusive interview with Wall Street's Dr. Doom about his early success as a money manager. Tech: Take a look at how much Walmart has previously spent on Azure cloud services. Business: Airbnb CEO Brian Chesky explains why understanding the differences between founders and managers is key. But first, it's all still a bit unclear.A federal court halting the tariff strategy that has tortured the market this year isn't a silver bullet for investors. Major indexes jumped Thursday morning thanks to the US Court of International Trade ruling that President Donald Trump didn't have the power to impose some of his wide-reaching tariffs. Whiplash ensued less than 24 hours later when an appeals court reinstated the tariffs while it reviewed the administration's arguments. Even if Trump's tariffs are ultimately ruled illegal, the risk of a trade war remains. After Wednesday's initial ruling, experts told BI's Christine Ji that Trump has other options that could further sow chaos in an already wild trading environment. Importantly, the entire episode demonstrates the ongoing uncertainty around an issue that has weighed heavily on the market. The constant threat and subsequent pullback of tariffs have proved a challenge for investors in recent months. Citadel's Ken Griffin went as far as saying you'd have been better off keeping your money on the sidelines, which is not the type of thing people who manage money for a living often suggest. Donald Trump, as always, is another X factor. One immediate solution for continuing his trade agenda could be the Trade Act of 1974. I'm sure you're well-versed on that US legislation, but if you aren't, it allows the president to impose tariffs up to 15% for 150 days. If Trump continues his tariff fight in the courts, that'll further complicate trade negotiations. Will a trading partner take the president's threat of tariffs seriously if he might not even have the authority to implement them? Stephanie Roth, chief economist at Wolfe Research, also highlighted to Christine the recently popular TACO trade — Trump Always Chickens Out — as another variable. The notion that he won't commit to harder tariffs, along with the court ruling, could push Trump to double down on his agenda. "There's a possibility he attempts to do some sort of surprise," Roth told Christine. 1. Wall Street's Dr. Doom takes on money management. Bearish economist Nouriel Roubini launched America Atlas Fund in November. Since its inception, the fund is up 4%, outperforming the S&P 500. Here's how it resists volatility. 2. Goldman Sachs is on defense as it faces "disruptive policy" shifts. Amid President Trump's trade war and policies, Goldman President and COO John Waldron said the bank is tamping down risk. For him, tariffs are just one piece of the puzzle, though. 3. What top Tesla investors want from Elon Musk. Now that Musk is leaving Washington, a group of the EV maker's investors drafted a list of requests for the tech billionaire. Items include a 40-hour-per-week commitment to the company and a CEO succession plan. 1. Cleaning up "The Everything Store." A document revealed Amazon's plan — discreetly called the "Bend the Curve" program — to purge at least 24 billion unique product listings from its marketplace. Axing underperforming items can save the company millions in server costs. 2. Microsoft and Walmart are cozier than previously thought. Last week, Microsoft's AI security head accidentally leaked details about its partnership with Walmart. Then, a separate document viewed by BI shows Walmart has spent about $580 million on Microsoft Azure's cloud services between June 2023 and May 2024, which could make it one of Microsoft's biggest cloud customers. 3. One of Nvidia's most important numbers doesn't have a $ attached. Token growth lets the chip giant know how much people are actually using AI and, therefore, its chips. It was a big propeller of Nvidia's Q1 earnings beat, but it's also pretty tricky to track. 1. Mark Zuckerberg and Palmer Luckey are cool now. The foes-turned-friends are teaming up for a US military project, building extended reality gear for soldiers. The Meta-Anduril system, Eagle Eye, will use AI and sensors in headsets and other wearables to enhance vision, Luckey said. 2. How is a business like a baby? Founders are like parents, Airbnb CEO Brian Chesky said on a recent podcast appearance. Chesky said founders have the authority to make big changes and know their metaphorical business baby better than anyone. They also run into two big challenges. 3. The Great Flattening isn't confined to Big Tech. As companies face recession fears and tariff uncertainty, middle managers are at risk. Amazon and Google already announced plans to cut thousands of workers, and now retailers like Walmart are aiming to "remove layers and complexity." Costco is taking a page from Sam's Club's playbook to speed up checkout at warehouses. Tiger Global, more than two years removed from its 56% loss in 2022, walks investors through what's changed — and compares the firm to Rory McIlroy. Starbucks is scaling back one of its popular point perks. Reid Hoffman says AI can't be your friend — and pretending it can is harmful. The taboo colon cancer symptom millennials are afraid to tell their doctors about. At Diddy trial, his consensual-sex defense is undercut by a personal assistant's wrenching rape testimony. Elon Musk's right-hand man is leaving DOGE, too. President Trump delivers remarks at US Steel Corporation Irvin Works. US Commerce Department releases Advance Economic Indicators Report. The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago. 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5 days ago
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The CEO of a top AI startup gave a stark warning about the tech's impact on the labor market
This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here. Good morning! A federal court ruled President Donald Trump doesn't have the authority to impose some of his tariffs. The three-judge panel's unanimous ruling declared the tariffs would be vacated, throwing a massive wrench into what has been a key piece of Trump's second term. The federal government has filed a notice of appeal on the court's decision. We're also looking at Anthropic's CEO stark warning about the tech's impact on the labor market. What's on deck Markets: The internet has a new favorite meme trade. Tech: Nvidia shows no signs of slowing down amid tariff uncertainty. Business: Elon Musk says his time as a government employee is coming to an end and thanks Trump. But first, AI in the office.A top AI executive is ringing the alarm bell on … AI. Anthropic CEO Dario Amodei predicted AI could eliminate half of all entry-level white-collar jobs and push unemployment to as high as 20% within the next five years. The above might seem like a coy way of touting a product's power in an ultra-competitive space, but Amodei told Axios he has "a duty and an obligation to be honest about what is coming." Some companies are ready to push the limits of an AI-led workforce. Take Retool, a platform for building AI applications. Its CEO, David Hsu, told BI's Lakshmi Varanasi its clients are asking "How do we get LLMs to actually replace labor?" It wasn't always supposed to be like this. Remember when AI was going to supercharge employees? The tech was going to make us as efficient as possible! Humans and AI — the best collab since peanut butter and jelly. So what happened? AI costs a lot of money to develop, and that's a problem with so much economic uncertainty. Sprinkle in an industry push to increase efficiency and reduce bureaucracy, and robots suddenly look much better than humans. The great AI automation comes with risks, though. (And I'm not talking about entrusting your business to a black box you don't really understand.) As BI's Katie Notopoulos recently detailed, the excitement a CEO (and their investors) has over AI adoption isn't always matched by their customer base. Just ask Duolingo. It's not bad news when it comes to AI. I hate to leave you on such a downer, especially right before a summer Friday. Here are some ways people are making AI work for them. Mark Quinn saw the work he was doing at a startup quickly become irrelevant thanks to the launch of GPT-4. It was a bitter pill to swallow, but Quinn found a silver lining: use AI to help find his next gig. Here's how he did it. AI was supposed to kill ad agencies. (At least, that's what OpenAI's CEO Sam Altman once predicted.) But three creative directors told BI's Lara O'Reilly how AI has helped them win more business. Finally, something for the young developers out there. Plenty of tech executives have said junior coders are an endangered species thanks to AI's programming capabilities. But AWS executive Rory Richardson sees AI giving a big boost to people early in their careers, allowing them to catch up to veteran employees. She's not alone in viewing AI as the great equalizer in the workplace. 1. GameStop made its first-ever crypto investment. Making good on its promise to buy bitcoin, the gaming retailer announced that it purchased 4,710 tokens, which are worth about $510 million. It's the latest company to add bitcoin to its balance sheet. 2. For Wall Street, TACO Tuesday is now every day. Investors are living by a new rule to play the market: TACO, or "Trump Always Chickens Out," the idea that markets can bet on Trump walking back tariff proposals. 3. Wealthy clients wanted. JPMorgan is opening 14 new financial centers across four states, offering highly specialized services to people with at least $750,000 in deposits and investments. It's part of the bank's greater mission to woo the millionaire class. 1. Meta wants to get physical. The tech giant is working on a project to open physical stores and hire retail workers, per an internal communication seen by BI. The plan could boost its hardware products' sales, although it's unclear how many stores Meta might open and when. 2. Apple's playing catch-up in the AI race. Apple has very few of the AI building blocks its competitors enjoy, some of which have been in the making for 25 years. It may need to partner with rivals or make acquisitions to catch up, BI's Alistair Barr writes. 3. Nvidia beat Wall Street's Q1 forecast. The chip giant reported revenue of $44.06 billion, compared to estimates of $43.32 billion, with the stock up 3% in after-hours trading. However, Nvidia's China sales were hit hard by US export restrictions, and it expects to take $8 billion in losses of H20 chips revenue in Q2. 1. Millennial divorce is here, and it's expensive. Divorce isn't as common among millennials as it was among boomers, but it's much more financially disruptive. It can potentially decimate savings and lock divorcees out of the housing market. Often, women pay the steepest price. 2. Elon Musk's exit from the government. The Tesla and SpaceX CEO announced on Wednesday his time as a US government employee is coming to an end, and thanked President Trump for the opportunity to "reduce wasteful spending" at DOGE. His announcement came a day after he criticized Trump's "big beautiful bill," saying it undermined DOGE's work. 3. Trump's Big Law losing streak. Federal judges have blocked the Trump administration's executive orders targeting WilmerHale, Jenner & Block, and Perkins Coie, and they're citing Trump's deal with Paul Weiss as an example. Here are five of the sharpest takedowns from judges so far. A Carta exec's resignation letter accused the CEO of sexism. She says she didn't write it. Wired's editor told BI's Peter Kafka how she got 62,000 new subscribers in two weeks. Marc Benioff-backed influencer agency Whalar Group is buying a creator startup for $20 million as M&A ramps up. 'Lilo & Stitch' is a smash hit. Here are the movies Disney could remake next. A global talent leader at EY shares the three soft skills she looks for in job applicants. A Salesforce exec tells BI there's an even more important skill for employees than coding. McKinsey's staff numbers have dropped by more than 10% in the last 18 months. My name is Chad. Yes, I'm white, work an office job, and sometimes I wear a vest. Bureau of Economic Analysis publishes revised GDP growth figures for Q1 2025. "Manhattanhenge" — when the sunset aligns perfectly with Manhattan's street grid — returns. Costco, Gap, and Best Buy report earnings. The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago. Read the original article on Business Insider
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6 days ago
- Business
- Yahoo
Nvidia's earnings report means another big test for the chip giant
This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here. Hello there! The warmer weather might mean some post-work festivities. But just because you're off the clock doesn't mean anything goes. An etiquette expert offered tips on what not to order when you're out with work people. In today's big story, we're previewing what to expect from Nvidia's big earnings report after the bell. What's on deck Markets: BlackRock's bond chief shared some trades he's eyeing. Tech: General Catalyst's leader is taking the VC down the road less traveled. Business: Gen Z saw sex work as a shortcut to the American dream. Now they are in a nightmare. But first, reporting for reports earnings today from unfamiliar territory. In previous quarters, the biggest question asked of the chip giant wasn't if it would beat analyst estimates; it was how much it could surpass them. Things are different now, as 2025 hasn't been kind to Nvidia. The tech giant is up just 0.9% this year, trailing the Nasdaq 100 index, which is up nearly 2%. BI's Jennifer Sor has a rundown on what analysts are saying about Nvidia before it reports after the bell. Unsurprisingly, what's got Wall Street concerned about Nvidia is what's top of mind for almost every company these days: tariffs. With so much of Nvidia's business tied to China — CEO Jensen Huang recently said its market share there was roughly 50% — the threat of a trade war weighs heavily on the tech giant. Tariffs' uncertainty and volatility haven't always been bad for Nvidia. After taking a serious tumble following President Donald Trump's "Liberation Day," the stock is up 44% from recent lows. Today, all eyes will be on Nvidia's guidance and how confident, or pessimistic, the company will be about its future projects while dealing with an unknown trade policy. Despite the uncertainty, Wall Street still seems mostly positive on Nvidia's future. Bank of America said Nvidia's second-quarter guidance could be "messy," and Piper Sandler even expects the company to miss on revenue. Both firms, however, still believe the stock has upside. Betting on Nvidia's resilience might be the best move. After all, the tech giant has successfully responded to what some have previously positioned as major threats to its business model. This February, there were concerns over the Chinese startup DeepSeek. In November, all the talk was about demand for its new Blackwell chip. And last August, Nvidia had to address whether tech companies were rethinking the ROI they were getting from their AI bets. Each time, Nvidia answered the bell. Which raises the question: Why should tariffs be any different? 1. Goldman Sachs thinks tariff-induced inflation could be a one-time thing. Companies are raising prices amid tariff news, but Goldman thinks an inflation blip is only fleeting, the bank said in a note. Here are its three reasons. 2. BlackRock's bond chief weighs in on the market swings. Rick Rieder spoke to BI about the investing opportunities that have arisen in the bond market during a wild few months. Among his favorite current bets is short-duration Treasurys. "One of the great things about investing in this environment is it's not static," Rieder told BI. 3. Trump Media stock swings on plans to raise $2.5 billion for crypto. The stock surged 15% in premarket trading before tumbling as much as 12% on Tuesday. The company's announcement is President Trump's latest move into crypto. 1. General Catalyst is not like the other VCs. Under Hemant Taneja, GC has acquired stakes in unusual venture-capital assets like hospitals and accounting firms. Taneja is pushing the firm beyond the typical VC playbook, laying the groundwork to go public and baffling the rest of the industry in the process. 2. For tech CEOs, it's win-some/lose-some with Trump. Tech billionaires from Jeff Bezos to Mark Zuckerberg lined up to support Trump at his inauguration. For their time and money, Trump is helping them on some things, but fighting them on others. 3. Europe's EV boom is leaving Tesla behind. Tesla's European sales collapsed by 49% last month, even as the overall EV market in Europe grew by nearly 28% in the same period, data from the European Automobile Manufacturers' Association shows. 1. The Gen Zers feeling stuck in sex work. For some graduates, sex work was a shortcut to financial freedom in the face of a brutal job market. But now that their clients are pinching pennies, sex workers are making far less than they used to — and some don't see a way out. 2. What really happened at an "anti-woke" crypto conference? Solana's Accelerate conference took a strong position on the culture war in a trailer for the event. The vibe of the actual conference was much different, though. It also lacked the spectacle of past crypto conferences. That's probably a good thing, BI's Katie Notopoulos writes. 3. Trump wants to make it easier to dump government employees. The administration revived a push to reclassify federal workers as at-will employees, making it much easier to fire them with little to no notice. Critics say it could undermine apolitical government jobs and face legal challenges. DOGE's '5 things' emails are dying a slow, quiet death. You need a 'resentment audit' to help set healthy boundaries at work, says this executive coach. No, AOC is not worth millions of dollars. Read the memos The Washington Post sent staff offering voluntary buyouts as the Bezos-owned paper restructures. Elon Musk says Trump's spending bill 'undermines' DOGE's work. Google CEO reacts to OpenAI's big hire: 'Jony Ive is one of a kind.' AI hallucinations in court documents are a growing problem, and lawyers are responsible for many of them. Trump says it would cost Canada $61 billion to get protection from his 'Golden Dome.' Vice President JD Vance speaks at Bitcoin 2025 in Las Vegas. Macy's reports earnings. Federal Open Market Committee meeting minutes published. The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago. Read the original article on Business Insider Sign in to access your portfolio
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22-05-2025
- Business
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A key recruiting cycle for Wall Street is showing signs of kicking off earlier than ever
This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here. Good morning! President Donald Trump officially accepted a gifted Boeing 747-8 from Qatar. The plane has been controversial over the potential conflict of interest it poses. But what's it like inside? Look at what's set to be the new Air Force One. In today's big story, talk is swirling that private equity's recruiting cycle is ramping up, and recent grads are on edge. What's on deck Markets: A US recession could be a self-fulfilling prophecy. Tech: Internal memos from one of Microsoft's AI leaders show how he plans to transform the tech giant. Business: Things are not going great for Target. But first, may the odds be ever in your most recent college graduates are getting ready for their new jobs, a select group is considering their one. Some private-equity firms are setting up informal, introductory meetings with soon-to-be junior investment bankers before their caps even hit the ground. These so-called "coffee chats" are the precursor to interviews for jobs that won't start for another two years. The process kicking off so early has hopeful financiers on edge, BI's Emmalyse Brownstein, Reed Alexander, and Alex Nicoll write. Welcome to Wall Street's "Hunger Games." If the above sounds confusing, I don't blame you. PE's recruiting cycle doesn't make much sense. Before you start working at your first job (investment banking analyst), you're already interviewing for your second job (private-equity associate). Take a minute to read the last sentence again if you need to. Still, that's how things often work on Wall Street: always thinking two steps ahead. The summer internship that leads to the junior-banker job offer is often secured well over a year before it starts. And your best shot at getting one of those is your university's finance club, which you need to start thinking about the second you get on campus. Speaking of college, you'd better plan on getting into a target school if … well, you get the idea. PE firms might eventually find themselves flying too close to the sun. The junior-banker-to-PE pipeline has been mutually beneficial. Banks don't have to worry about competing with PE firms for young talent. PE firms don't have to worry about training associates on the basics of dealmaking. But the ever-earlier timeline hasn't gone unnoticed, and at least one high-profile banker has called PE firms on it. Speaking at Georgetown University last fall, JPMorgan CEO Jamie Dimon said junior bankers taking PE jobs before starting as analysts was "unethical." "I don't like it, and I may eliminate it regardless of what the private-equity guys say," he added. To be fair, some PE headhunters tried slowing things down with an industry pact. It didn't take long for one headhunter to break it. Banks are in a similar conundrum. If they ban analysts from pursuing PE jobs too early, they risk losing out on talent. After all, plenty of aspiring Wall Streeters just view banks as a stepping stone to getting a job in PE. If they start actively preventing that, what purpose do they serve them? 1. Could America be inadvertently pushing itself into a recession? Doug Ramsey, CIO of The Leuthold Group, thinks it might. In a note to clients, Ramsey pointed to a deteriorating consumer sentiment, which poses a major risk to the recession outlook. He's keeping an eye on a handful of sentiment indicators. 2. The bond market is flipping out, but Morgan Stanley isn't fazed. Though US deficit fears triggered a sell-off in the bond market, strategists at the bank warned against hopping on the "Sell America" train. "TINA — 'there is no alternative' — remains a theme for now," they wrote. 3. The stock market is flashing signals that another dip is coming — and investors should buy it, analysts at BoA say. A technical indicator suggests a near-term drop in stock prices is coming, but BoA says the market is still in a broader uptrend. 1. Meta's performance reviews are about to get harder. Managers are being told to put more employees in their "below expectations" rank — the lowest performer bucket — in the coming midyear performance reviews, per an internal memo seen by BI. The move could set the stage for more performance-based layoffs, despite 4,000 low performers being cut months ago. 2. OpenAI just bagged a $6.5 billion acquisition. Sam Altman's company is buying IO, a hardware startup from former Apple exec Jony Ive — the guy who designed the iPhone. It shows the generative AI competition is now about distribution, not technology, writes BI's Alistair Barr. 3. How Microsoft is bringing its "age of AI agents" to reality. In January, CEO Satya Nadella tapped Jay Parikh, the ex-head of engineering at Facebook, to lead a new unit called CoreAI, which is crucial to Microsoft's AI ambition. Internal memos from Parikh, and viewed by BI, reveal his plan to get Microsoft focused on the macro, CoreAI's early accomplishments, and more. 1. Target reports tumbling sales. In an earnings call, Target said the backlash from reframing its DEI program was one of the many headwinds that had an adverse impact on sales, but the exact amount wasn't quantifiable. Some DEI supporters have claimed partial victory, but many say they're not satisfied — and more protests are coming. 2. Is Musk what Tesla needs right now? BI asked four people who have worked with him, as the CEO steps back from DOGE to focus on Tesla amid falling sales and growing competition. One said Musk was Tesla's "product manager," but questioned whether he's the right person to lead the embattled EV maker. 3. Big Law firms say they're not being bribed by Trump. Nine white-shoe firms doubled down on their deals to provide a collective $940 million in pro- bono work for the Trump administration. In letters to Congress, they flatly rejected allegations that the deals were unethical. Remote workers flocked to jobs overseas. Now they're being ordered home. Walmart says it's cutting roles to 'remove layers and complexity.' What we know about Trump's secretive private dinner for top holders of his memecoin. Goldman Sachs shares 20 'rising star' stocks that a growing number of hedge funds are betting on. Tesla is now accepting Cybertruck trade-ins. Two owners showed BI how much their vehicles have depreciated. Fortnite is the No. 1 game after Apple let it back on the App Store. Epic CEO Tim Sweeney tells BI it's a 'priceless' win. Founder of AI tool for cheating in interviews predicts everyone will do it — and technical job interviews are on their way out. Disney could get a surprise win from Universal's big bet on Epic Universe. Trump hosts a gala for the top 220 holders of his memecoin. Immigration court hearing on ICE detention of Mahmoud Khalil, the Columbia University student who led pro-Palestine protests on campus. Universal Orlando Resort opens new theme park, Universal Epic Universe. The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago. Read the original article on Business Insider
