Good Afternoon. Markets hit record highs on cooler inflation and a 90-day China tariff pause. Meanwhile, Texas A&M unveiled self-healing plastic stronger than steel, and scientists everywhere proved that sometimes the best breakthroughs come from looking outside your own lane. Let’s get into it.

—Rosie, Wyatt, Evan & Conor

🔥 What’s Hot: 🔥

🥶 What’s Not: 🥶

1. S&P 500, Nasdaq at record highs as moderate inflation lifts rate hopes

The News: The S&P 500 and Nasdaq hit record highs Tuesday after July inflation data came in broadly as expected, boosting odds of a Federal Reserve rate cut in September. The Consumer Price Index rose 0.2% month-over-month, with annual inflation slightly below forecasts. Traders now price in an 88.8% chance of a 25-basis-point cut next month. A U.S.–China tariff truce extension also lifted sentiment, while mega-cap tech, bank, and airline stocks led gains.

Why It Matters: Moderate inflation plus a likely rate cut is Wall Street’s version of a two-for-one happy hour, cheap money ahead and no nasty inflation surprise in sight. The Fed’s potential pivot could keep the market’s record run alive, but tariff-related price bumps later this year could complicate the party. For now, investors are in “buy first, ask questions later” mode.
Source: reuters.com

2. Kodak Warns of $500M Debt Crisis, Survival in Question

The News: Eastman Kodak issued a “going concern” warning after a $26M Q2 loss and just $155M in cash against $500M in debt due within a year. Revenue slipped 1.5% to $263M, while borrowings jumped as loan maturities were accelerated. Survival hinges on ending its overfunded U.S. pension plan to free $500M by year-end, alongside up to $100M in stock sales. Kodak is also pivoting to pharmaceuticals, with an FDA-certified Rochester plant set to produce lab-grade saline this year. Shares fell 12% after hours.

Why It Matters: Kodak went from being the 4th most valuable company in the world in 1996 to a cautionary tale and a text book case for index fund investing. As it fights for survival, Kodak’s iconic brand may not be enough to save it from a cash crunch that could end 133 years of history. The pension reversion could give it breathing room, but its long-term challenge is clear, revenue, margins, and relevance in a crowded market. Kodak is pivoting now to pharmaceutical manufacturing, backed by a newly FDA-registered and certified facility, starting with low-margin lab saline and aiming to scale into more lucrative injectable IV products. But even with regulatory clearance, it’s still a long road from test tubes to sustainable profitability.
Source: rbj.net

3. Trump grants 90-day extension on harshest China tariffs

The News: President Trump has signed a 90-day extension delaying the harshest tariffs on Chinese imports, pushing the deadline to Nov. 10 as trade talks continue. The pause keeps headline rates at 30% on Chinese goods and 10% on U.S. goods, avoiding a snapback to triple-digit levels and follows recent negotiations in Geneva, London, and Stockholm. The talks have centered on sensitive areas like semiconductor exports and rare earth minerals, including last week’s deal allowing Nvidia and AMD to resume limited chip sales to China in exchange for a 15% revenue cut to the U.S. government.

Why It Matters: Tariff truce = market boost. By sidestepping an immediate escalation in the U.S.–China trade war, the move eased investor nerves, helping the S&P 500 and Nasdaq hit fresh record highs today. Traders see the extension as a tailwind for global growth-sensitive sectors, especially tech, while also raising odds for a Trump–Xi meeting at October’s APEC summit in South Korea. But with the new deadline landing right before U.S. elections, the tariff cliff is now a timed political fuse.
Source: finance.yahoo.com

4. Texas A&M creates self-healing plastic stronger than steel

The News: Texas A&M researchers have unveiled a carbon-fiber reinforced plastic, Aromatic Thermosetting Copolyester (ATSP), that’s lighter than aluminum, several times stronger than steel, and capable of healing itself from damage. The material can “remember” its shape and recover up to 80% of its strength after multiple stress-and-repair cycles using heat. Funded by the U.S. Department of Defense, the breakthrough opens applications for aerospace, defense, and automotive industries, from on-demand aircraft repairs to restoring vehicle safety after collisions, all while remaining recyclable.

Why It Matters: A material that can crack, heal, and get back to work could transform industries where failure isn’t an option. In defense and aerospace, ATSP could mean fewer grounded aircraft and lower maintenance costs; in autos, it could make cars safer and more sustainable. By combining self-healing, shape-memory, and extreme strength, Texas A&M’s plastic breakthrough edges us closer to machines and vehicles that last longer, cost less to maintain, and are easier on the planet. Now if only your phone screen could do the same.
Source: stories.tamu.edu

5. Solar panel costs plunged 99% thanks to other industries

The News: An MIT study finds that the 99% plunge in solar panel costs since the 1970s owes as much to outside industries as to solar itself. Researchers traced 81 innovations from semiconductor wafer techniques and advanced metallurgy to glass manufacturing and even oil-and-gas drilling methods, that slashed both panel and installation costs. One standout, wire sawing, saved $5 per watt by reducing silicon waste. The study suggests future gains could come from AI, robotics, and automated permitting, showing that solar’s success has been powered by a global network of knowledge spillovers.

Why It Matters: Solar’s spectacular cost crash didn’t happen in a vacuum, it came from borrowing brilliance from chips, metals, manufacturing, and even the fine art of cutting red tape. It’s proof that sometimes the best ideas for your field come from looking over someone else’s shoulder. That same cross-industry playbook could spark the next leap in renewables, from lightning-fast permitting to AI-optimized designs. Call it what you want, daydreaming at work or “seeking external inspiration” but clean tech shows it pays off when other sectors get smarter too.
Source: news.mit.edu

1. Mercedes CEO warns EU car ban could cause market 'collapse'

The News: Mercedes-Benz CEO Ola Källenius warned that the EU’s planned 2035 ban on new combustion engine car sales could trigger a “collapse” of Europe’s automotive market. Speaking to Handelsblatt, the ACEA president urged a “reality check” on the policy, citing falling EV sales, intense competition from cheaper Chinese imports, and new U.S. tariffs on European cars. Källenius is pushing for tax incentives and cheaper charging, rather than an outright ban, and cautioned that consumers might panic-buy combustion vehicles ahead of the deadline, spiking emissions. Germany, Italy, and the Czech Republic have also called for a softer 90% emissions reduction target instead of a full ban.

Why It Matters: This isn’t just corporate whining, it’s the head of Europe’s most storied carmaker hinting that the industry’s green transition could skid off the road. With EV sales slipping and Chinese rivals revving up, the risk is a policy pile-up: ambitious climate targets colliding with economic reality. A sudden market shock could cost jobs, stall innovation, and ironically, make Europe more dependent on foreign automakers. Let’s see if the EU follows the U.S. playbook of insisting foreign automakers manufacture their cars within the EU.
Source: motor1.com

2. Crypto Entrepreneur Who Caused 2022 Market Crash Pleads Guilty to Fraud

The News: Do Kwon, the South Korean co-founder of Terraform Labs, pleaded guilty in a New York federal court to conspiracy and wire fraud over the $40 billion collapse of the TerraUSD and Luna cryptocurrencies. The 33-year-old agreed to forfeit $19.3 million and faces up to 25 years in prison, though prosecutors will seek a sentence under 12 years. The plea marks a sharp reversal from his earlier not-guilty stance and follows his extradition from Montenegro after a months-long legal tug-of-war between the U.S. and South Korea.

Why It Matters: One of crypto’s most infamous fugitives is now one of its biggest cautionary tales. Kwon’s admission closes a chapter in a saga that rattled global markets, bankrupted firms, and sparked regulatory crackdowns from Seoul to Singapore. For investors, it’s a reminder that flashy whitepapers and billion-dollar valuations can vanish faster than you can say “algorithmic stablecoin.”
Source: nytimes.com

3. China tells firms to shun Nvidia H20 chips despite trade truce

The News: Beijing has urged Chinese firms, especially those linked to government or national security projects, to avoid Nvidia’s H20 AI chips, even after the Trump administration reversed its ban and allowed sales in exchange for a 15% U.S. government cut of related revenue. While not an outright ban, the guidance is seen as part of China’s broader push to replace foreign semiconductors with domestic alternatives, boosting local players like Cambricon Technologies, whose shares jumped 20% on the news. The H20, designed to skirt earlier U.S. export controls, remains attractive for AI inference work, but faces new scrutiny from Chinese regulators over alleged security risks, which Nvidia denies. The move could limit Washington’s hoped-for revenue windfall from resumed chip exports.

Why It Matters: This is a geopolitical chess match in silicon. The U.S. says “sell them the slow chips and take their money,” while Beijing says “thanks, but we’ll build our own.” For Nvidia and AMD, China is both the biggest growth opportunity and a customer under political pressure to walk away. For Washington, the episode underscores the limits of transactional trade-offs—especially when national security and tech self-sufficiency are at stake. Singapore- and South Korea–based AI developers will be watching closely, as any widening of China’s guidance could accelerate demand shifts in the broader Asian semiconductor market.
Source: bloomberg.com

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