Good Morning! Stocks got rekt yesterday, S&P 500 posted its largest single-day drop since last month’s August 5th meltdown. Apollo’s co-founder Josh Harris made his first private equity investment at his new firm, 26North. Canva says its AI features are worth the 300% price increase. Meanwhile, DirecTV will offer customers impacted by the ESPN outage a $20 credit. But HP wasn’t feeling as generous and will pursue Mike Lynch’s grieving family (billionaire whose yacht sank in Italy last month) for $4 billion. Plus, the best Whole Foods prepared items, and how to write the perfect resignation letter.

Looking for niche private market opportunities led by a Wall Street veteran with skin in the game? Check out today’s sponsor, 10 East.

_{SQUEEZ OF THE DAY}

Nvidia’s Terrible Day

Nvidia keeps breaking records in 2024. But yesterday, it was for all the wrong reasons. 

If you checked your brokerage account this morning, you're probably not too thrilled with how the market performed yesterday. Stocks had one of their worst days in two years with the S&P 500 alone falling 2%.

But the biggest loser of the day? AI-darling Nvidia. Nvidia fell 9.5% yesterday (and another 3% after hours), erasing over $270 billion in market cap. It was the largest single-day loss in market cap for any U.S. company in history. To put into perspective, that's larger than the market cap of some of the world's largest companies like AstraZeneca, Adobe, Salesforce, and T-Mobile.

Investor optimism about AI is softening. Economic data, particularly Tuesday's manufacturing report was weak. And Nvidia bore the grunt. The chipmaker is still up over 124% YTD.

Making matters worse, after the bell closed, Nvidia got subpoenaed by the DOJ. The Justice Department accuses Nvidia of violating antitrust laws, which could be even more bad news for the chipmaker.

Takeaway: Historically, a market sell-off in September is nothing out of the ordinary. On average, the S&P has fallen an average of -2.1% since 1928, and the Nasdaq has dropped an average of -3.3% since 1971. Some investors are cautioning that there may be a September storm - and short sellers are targeting the AI boom with more frequency. We’ll see what September has in store - but it might be time to buckle up - or even buy the dip.

_{PRESENTED BY 10 EAST}

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_HEADLINES

Top Reads

• Weak manufacturing measures raise specter of U.S. economic slowdown (CNBC)

• Why investors turn to ETFs during times of market stress (YF)

• Apollo co-founder Josh Harris makes first private equity deal at 26North (YF)

• DirecTV subscribers can receive a $20 credit for ESPN (CBS)

• HP confirms it will pursue Mike Lynch’s grieving family for $4 billion (YF)

• Goldman cuts copper forecast by $5,000 (YF)

• Canva says its AI features are worth the 300 percent price increase (Verge)

• NYC’s Airbnb ban one year later (Skift)

• Former Moelis, Barclays activism defense bankers to build Jasper Street team (Reuters)

• The threat to OpenAI is growing (WSJ)

• Soaring sports team values create new pressure for owners (CNBC)

• Crucial jobs report kicks off a new month (YF)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed lower after slowdown fears emerge.

Movers & Shakers

• (+) MicroStrategy ($MSTR) +36% after Leerink raised its price target to $153, suggesting a 40% upside.

• (–) Boeing ($BA) -7% after a downgrade by Wells Fargo.

• (–) Nvidia ($NVDA) -10% after a sell-off in AI stocks.

Private Dealmaking

• Blackstone nears $13.5 billion deal to acquire AirTrunk

• Josh Harris' 26North bought ArchKey for over $1 billion

• Zepto, an Indian grocery delivery company, raised $340 million

• Adani Ports paid $185 million for an 80% stake in Astro

• Samsung Medison bought Sonio for $93 million

• Verlinvest invested $35 million into Blue Tokai

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

_{BOOK OF THE DAY}

It Starts With Us

Lily and her ex-husband, Ryle, have just settled into a civil coparenting rhythm when she suddenly bumps into her first love, Atlas, again. After nearly two years separated, she is elated that for once, time is on their side, and she immediately says yes when Atlas asks her on a date.

But her excitement is quickly hampered by the knowledge that, though they are no longer married, Ryle is still very much a part of her life—and Atlas Corrigan is the one man he will hate being in his ex-wife and daughter’s life.

Switching between the perspectives of Lily and Atlas, It Starts with Us picks up right where the epilogue for the “gripping, pulse-pounding” bestselling phenomenon It Ends with Us left off.

Revealing more about Atlas’s past and following Lily as she embraces a second chance at true love while navigating a jealous ex-husband, it proves that “no one delivers an emotional read like Colleen Hoover”

“My choice helped me realize that sometimes the hardest decisions a person can make will most likely lead to the best outcomes.”

_{DAILY VISUAL}

$3 Billion Per Day in Interest Expenses

_{PRESENTED BY SURE DIVIDEND}

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_{DAILY ACUMEN}

EQ

IQ might get you hired, but EQ gets you promoted.

Emotional intelligence - the ability to understand and manage your own emotions and those of others - is crucial for success in work and life.

How emotionally intelligent are you?

Leaders with high EQ are more effective, and companies that value EQ outperform those that don't.

Develop self-awareness.

Practice empathy.

Manage your emotions.

Remember, emotions are data, not directives.

_{ENLIGHTENMENT}

Short Squeez Picks

• The pros and cons of invest, borrow against it, and die

• 10 Whole Foods prepared food items, ranked

• Does remote work really make more time for work-life balance?

• 5 stages every successful relationship must navigate

• How to write the perfect resignation letter

_{MEME-A-PALOOZA}

Memes of the Day