Good Afternoon. While the heat index is rising, so is the temperature in D.C. over Fed drama, tariffs, and meme stocks. If your group chat is talking about Powell or why Kohl’s is suddenly cool again, we’ve got you covered. Let’s get into the headlines that are hotter than your neighbor’s grill.

—Rosie, Wyatt, Evan & Conor

🔥 What’s Hot: 🔥

🥶 What’s Not: 🥶

1. Kohl's stock doubles as retail traders launch short squeeze

The News: Kohl’s stock more than doubled Tuesday morning before triggering multiple trading halts, as retail traders on platforms like Reddit and Stocktwits orchestrated a short squeeze targeting the company’s high short interest. At its peak, shares surged over 100% and finished midday up 30% at $13.32. Trading volume exploded as coordinated social media buying forced hedge funds to cover losing bets, mirroring the “meme stock” mania of 2021.

Why It Matters: Look out for RoaringKitty & r/wallstreetbets to be mentioned in your group chat as this dramatic rally underscores the power of coordinated retail investors in today’s market. While fundamentals at Kohl’s remain shaky, momentum and meme status can temporarily trump analyst skepticism, creating volatility and big opportunities (and risks) for traders. With echoes of GameStop and AMC, today’s action highlights the ongoing influence of online communities on Wall Street’s biggest moves.
Source: finance.yahoo.com

2. Musk Allies to Raise Up to $12 Billion for xAI Chips as Startup Burns Through Cash

The News: Elon Musk’s AI startup xAI is seeking up to $12 billion in private credit funding to supercharge its AI ambitions, according to the Wall Street Journal. The raise coordinated by Valor Equity Partners would finance the purchase of advanced Nvidia chips for a new data center, enabling xAI to expand its Grok AI chatbot operations and scale up its Memphis “Colossus” supercomputer site to one million GPUs.

Why It Matters: Keep in mind, this is on the back of SpaceX’s recent $2 Billion investment in xAI. This bigger raise highlights just how expensive and competitive the AI arms race has become. As rivals like OpenAI and Meta spend tens of billions on infrastructure, Musk’s latest funding push shows the scale needed to compete. If successful, it would cement xAI as a serious contender in the global AI landscape and accelerate the rollout of next-generation AI tools for businesses and consumers alike.
Source: wsj.com

3. Trump administration targets 60+ workplace safety rules

The News: The Trump administration has proposed rewriting or repealing more than 60 federal workplace safety and wage regulations, targeting protections for home health aides, construction workers, miners, and farmworkers. The Labor Department says the goal is to cut red tape and reduce costs for employers, but critics warn that rolling back rules on minimum wages, job safety, and anti-retaliation protections could leave millions of workers, especially women and minorities, at greater risk.

Why It Matters: This deregulation push marks one of the largest overhauls of workplace rules in decades, affecting everything from overtime pay and seat belt requirements for farmworkers to safety standards in mines and construction sites. While industry groups say it will ease compliance burdens, labor advocates argue the changes could put vulnerable workers in harm’s way and undermine basic job protections across multiple sectors. If this deregulation goes through, look for workers comp cases to increase.
Source: abcnews.com

4. Trump says Fed's Powell will be out in 8 months, calls him a 'numbskull'

The News: President Trump publicly blasted Federal Reserve Chair Jerome Powell as a “numbskull” for keeping rates too high and declared Powell will be out in eight months. The administration is ramping up pressure on the Fed, with Treasury Secretary Scott Bessent also demanding an internal investigation into the central bank’s non-monetary operations. Trump continues to insist the Fed’s policy rate should be slashed by three percentage points, even as Powell has said he won’t leave early and the Fed is widely expected to hold rates steady at next week’s meeting.

Why It Matters: Trump’s attacks on Powell and threats to Fed independence are fueling market fears about political interference in monetary policy. Economists warn that pressuring the Fed to cut rates could actually raise long-term interest rates and inflation expectations, making it harder to control inflation and potentially forcing the central bank to tighten even more. gasp.
Source: reuters.com

5. Lockheed Martin shares plunge 9% after big earnings collapse

The News: Lockheed Martin shares plunged 9% after reporting a staggering 79% drop in quarterly earnings, one of the sharpest collapses in company history. The defense giant took over $1.6 billion in program-related charges from setbacks in three major projects, slashing net earnings to just $342 million. Revenue also fell short, and Lockheed cut its full-year profit outlook by nearly 20%.

Why It Matters: Lockheed’s meltdown sent shockwaves across the defense sector, pulling down related ETFs and raising concerns about execution risks on big military contracts. With free cash flow turning negative and investors spooked by the losses, Lockheed’s stumble stands out in an otherwise strong year for defense stocks—signaling the risks of chasing performance in a sector known for complex, costly projects.
Source: investors.com

1. China's Walker S2 robot changes its own battery in under 3 minutes

The News: China’s UBTech has unveiled the Walker S2, the world’s first humanoid robot that can autonomously swap its own battery in under three minutes. The 5-foot-3 robot can now work around the clock, bypassing one of the biggest limitations in robotics: downtime for recharging. Walker S2’s “hot-swapping” dual-battery system, already in use at factories for automakers like BYD and Nio, enables continuous operation without human help.

Why It Matters: This breakthrough marks a major leap for industrial automation. As China ramps up efforts to lead in robotics, the Walker S2’s self-sufficiency could speed up adoption of humanoid robots in factories, and eventually households, worldwide. The move signals China’s growing dominance in robotics innovation and could reshape labor and supply chains, with robots that literally never need to take a break.
Source: iotworldtoday.com

2. AstraZeneca Plans to Invest $50 Billion in U.S. Amid Tariff Threat

The News: AstraZeneca, the UK drugmaker, has pledged to invest $50 billion in the United States by 2030, joining a surge of global pharmaceutical companies funneling money into U.S. manufacturing and R&D. The move comes as President Trump threatens to impose a 200% tariff on imported drugs to force more domestic production. Other drug giants like Roche, Novartis, Johnson & Johnson, and Eli Lilly have made similar billion-dollar commitments in recent months.

Why It Matters: The wave of pharma investment signals how tariffs, love em or hate em, are reshaping global supply chains, with companies rushing to avoid steep levies that could raise drug costs or trigger shortages. The U.S. push to “onshore” medicine production aims to reduce reliance on foreign supply, but industry leaders warn that rapid tariff rollouts could disrupt access to critical drugs and strain the system. For patients, the outcome could mean more jobs and innovation in the U.S.—but also higher prices or delays if trade tensions escalate.
Source: nytimes.com

3. EU appears set to approve Apple's App Store changes, avoiding €50M fines

The News: Apple is expected to win EU approval for its latest round of App Store changes, likely sparing the company from daily fines of up to €50 million. The European Commission has signaled it will accept Apple’s updated developer fee structure and relaxed rules around alternative payment links, following a €500 million penalty for violating the Digital Markets Act. Under the new policies, developers face multi-tiered fees and can now steer users to outside payment options more freely.

Why It Matters: Like a big aspirin, the pending approval eases Apple’s immediate regulatory headaches in Europe. Developers will get more flexibility and lower fees in some cases, yet critics argue Apple’s complex new system still makes it hard to bypass the App Store’s commissions. With Apple appealing the original fine and industry rivals like Epic Games and Spotify pushing for more sweeping reforms, the EU’s move sets the stage for ongoing legal and policy battles that could reshape how app stores work globally.
Source: appleinsider.com

Q: How do you organize a space party?

A: You planet.

✅ Say good-bye to Mosquitos: Two proven ways to keep mosquitos from sucking your blood. Adios mosquitos.
✅ Reverse Bucket List: Write down 5 amazing things you’ve already accomplished—celebrate what you’ve done, not just what’s next.
✅ No “Yes” Day: Say “no” to one unnecessary request or invite—protect your time!
✅ No Excuses: Stashing cash for emergencies? Make every dollar count with a high-yield savings account that outpaces your old bank. It takes five minutes to open.* Compare your options now.

*A message from our sponsor or affiliate link.

An Individual Retirement Account used as an intermediary for rolling over funds from an employer-sponsored retirement plan, preserving the tax-deferred status.

“He used a conduit IRA to temporarily hold his 401(k) distribution before moving it to a new employer’s plan.”