Good Morning! Goldman Sachs ended its IPO diversity pledge, with Trump’s influence scaring execs into retreat. Elon says a Federal Reserve audit is on the cards, while Powell rejected Musk's claims that the Fed is 'absurdly overstaffed.'

JPMorgan employees are petitioning against the 5-day back-to-office rule. Anduril takes over Microsoft’s $22 billion U.S. Army headset program, and SoftBank investments slip into the red.

Plus, major grocers enforce egg limits, and the best Rolexes to invest in right now.

With Elf Labs’ funding round closing tonight, take advantage of this Short Squeez exclusive investment opportunity.

_{SQUEEZ OF THE DAY}

Wall Street’s Next Gold Rush

Wall Street hasn’t always had the greatest relationship with crypto - Warren Buffett infamously called Bitcoin rat poison and even last month Jamie Dimon doubled down that the cryptocurrency has no intrinsic value.

But banks are becoming opportunistic in 2025 - and they’re warming up to crypto after years on the sidelines —this time with an IPO play. 

Firms like Morgan Stanley, Bank of America, and RBC are mapping out strategies to win business in an industry they once gave the cold shoulder to.

The shift is largely attributed to Trump’s crypto-friendly regime, which is expected to unlock a wave of delayed IPOs, stock offerings, and convertible bonds. Since taking office, Trump has already rolled out pro-crypto policies. And with Bitcoin hitting record highs and institutional interest surging, investment banks smell fees. 

Morgan Stanley missed out on Coinbase’s blockbuster 2021 listing, and the bank doesn’t want to make the same mistake again. It served as an advisor to the crypto exchange IREN to explore monetization options and pitch itself for future deals.

Meanwhile, Jefferies, JPMorgan, and Moelis are advising firms like Bullish and Figure Technologies on potential listings. Even RBC, which has traditionally avoided crypto, arranged a convertible bond sale for Core Scientific.

Bank of America’s investment banking division is considering pushing into digital asset deals, and CEO Brian Moynihan says banks will “come in hard on the transactional side” once regulations stabilize.

Takeaway: While it's still early to predict the full impact of these developments, Wall Street is clearly positioning itself to capitalize on the burgeoning crypto market. The main question now isn't whether banks will engage in crypto, it’s which one will build the best crypto advisory business.

And if Bitcoin keeps climbing? Expect every banker on Wall Street to suddenly become a “longtime believer in blockchain technology.”

_{PRESENTED BY ELF LABS}

The Clock is Ticking—Final Hours to Invest in This ‘$2T Fairytale’

Today’s the last day for investors to get a piece of some of the biggest names in entertainment. 

Elf Labs won 100+ historic trademarks to characters like Cinderella, Snow White & The Little Mermaid. Now, they’re giving investors an opportunity to tap into the $2T entertainment & merchandising market.

Not only is Elf Labs signing major toy, apparel & food deals globally—they’re also using patented technology to bring their characters to life with AR/VR and AI—creating a first-of-its-kind, revolutionary entertainment platform.

Time’s running out to join Elf as they completely revamp the entertainment landscape. 

Cinderella’s magic ended at midnight—don’t let yours—Invest Now.

_HEADLINES

Top Reads

• Goldman Sachs IPO diversity pledge with US DEI goals under fire (YF)

• Trump scared Wall Street into abandoning DEI (NYT)

• Musk defends mass DOGE firings, says the US should not ‘live in a bureaucracy’ (NYP)

• Elon Musk warns Federal Reserve may face DOGE audit (Fox)

• Powell says Fed is 'overworked' not 'overstaffed' in Musk pushback (Fox)

• Powell says Fed doesn’t need to rush on rate cuts (CNN)

• Bain may bail on Fuji Soft deal (Axios)

• Elon Musk is waging war on a key check of his business empire (CNN)

• The deals boom seems to be on hold (Axios)

• Meta staff challenge layoff language (LI)

• YouTube's TV viewing passes mobile (HR)

• Family offices are becoming an economic force (Fortune)

• The start of Trump 2.0 is not exactly what Wall Street expected (YF)

• JPMorgan employees start petition to halt 5-day back-to-office rule (Fortune)

• SoftBank explores debt-heavy financing in $500B AI push (YF)

• SoftBank investments go into red (CNBC)

• Trump needs private equity to help lower prices (Slate)

• Goldman Sachs open to acquisitions in asset, wealth management (YF)

• Major grocers enforce egg limits (CNN)

• Anduril to take over Microsoft’s $22 billion U.S. Army program (CNBC)

• Trump, Elon Musk bond over another thing (Fox)

_{CAPITAL PULSE}

Markets Rundown

Markets Mixed as Investors Await Inflation Data

U.S. stocks closed mixed on Tuesday, with the S&P 500 near flat and the Nasdaq slightly lower. Consumer staples and energy led gains, supported by higher oil prices. Bond yields rose, with the 10-year Treasury at 4.54%.

Trade uncertainty lingered as President Trump signed a 25% tariff on steel and aluminum imports, set to begin March 4. Investors are now focused on January CPI data due Wednesday, which could influence Fed policy.

Corporate earnings have been strong, with 65% of S&P 500 companies reporting 16% year-over-year growth so far. Financials and growth sectors like tech and consumer discretionary are leading the way. Analysts expect S&P 500 earnings to grow by 13% in 2025, supporting balanced performance between growth and value stocks.

Small business optimism dipped in January but stayed above the 30-year average. Lower inflation concerns and easing price hikes suggest inflation could moderate in the coming months. 

Economic conditions remain favorable for small businesses, supporting a positive outlook for U.S. mid-cap and small-cap stocks.

Movers & Shakers

• (+) Coca-Cola ($KO) +5% after strong earnings; increased demand.

• (–) Marriott International ($MAR) -5% because of a soft outlook for room growth; profit.

• (–) Astera Labs ($ALAB) -11% after revenue growth decelerated.

Private Dealmaking

• Novartis bought Blackstone's Anthos for $3.1 billion

• Columbus McKinnon bought Kito Crosby for $2.7 billion

• QuEra Computing, a quantum computing startup, raised $170 million

• Tines, a security automation platform, raised $125 million

• Harrison.ai, a medical diagnostic support provider, raised $112 million

• 75F, an HVAC automation company, raised $45 million

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

_{BOOK OF THE DAY}

Waste Land

We are entering a new era of global cataclysm in which the world faces a deadly mix of war, climate change, great power rivalry, rapid technological advancement, the end of both monarchy and empire, and countless other dangers. In Waste Land, Robert D. Kaplan, geopolitical expert and author of more than twenty books on world affairs, incisively explains how we got here and where we are going.

Kaplan makes a novel argument that the current geopolitical landscape must be considered alongside contemporary social phenomena such as urbanization and digital news media, grounding his ideas in foundational modern works of philosophy, politics, and literature, including the poem from which the title is borrowed, and celebrating a canon of traditionally conservative thinkers, including Alexander Solzhenitsyn, Jeane Kirkpatrick, and many others.

As in many of his books, Kaplan looks to history and literature to inform the present, drawing particular comparisons between today's challenges and the Weimar Republic, the post-World War I democratic German government that fell to Nazism in the 1930s. 

Just as in Weimar, which faced myriad crises inextricably bound up with global systems, the singular dilemmas of the twenty-first century—pandemic disease, recession, mass migration, the destabilizing effects of large-scale democracy and great power conflicts, and the intimate bonds created by technology—mean that every disaster in one country has the potential to become a global crisis, too.

According to Kaplan, the solutions lie in prioritizing order in governing systems, arguing that stability and historic liberalism rather than mass democracy per se will save global populations from an anarchic future.

Waste Land is a bracing glimpse into a future defined by the connections afforded by technology but with remarkable parallels to the past. Just as it did in Weimar, Kaplan fears the situation may be spiraling out of our control—unless our leaders act first.

“An urgent exploration of a world in constant crisis, where every regional disaster threatens to become a global conflict, with lessons from history that can stop the spiral.”

_{DAILY VISUAL}

The LinkedInfluence

_{PRESENTED BY KNOPMAN MARKS}

Wall Street’s Top Firms Trust Knopman Marks—You Should Too

Passing a securities exam isn’t just about memorizing facts—it’s about training the way top finance professionals do.

Knopman Marks is the go-to prep provider for aspiring finance professionals, trusted by the biggest firms on Wall Street. Their approach goes beyond the textbook, equipping candidates with the skills to learn faster, retain more, and apply knowledge under pressure.

• A Smarter Way to Study: Learn using science-backed memory techniques designed for long-term retention.

• More Than Just Instructors: Train with industry veterans who know what it takes to succeed.

• Performance-Driven Results: An adaptive learning process tailored to how you absorb information best.

Pass with confidence and set yourself apart in a competitive job market.

_{DAILY ACUMEN}

Date Night

Intentional date nights can transform routine evenings into opportunities for deeper connection and long-term relationship growth.

Research suggests that trying new activities together, like cooking classes or adventurous outings, boosts excitement and emotional bonding by releasing adrenaline and dopamine.

Engaging in eye gazing over a romantic dinner enhances intimacy, fostering a deeper emotional connection.

Watching relationship-focused movies not only entertains but also promotes open communication by encouraging couples to discuss their own experiences in a safe context.

Additionally, taking a walk down memory lane—such as recreating a first date or revisiting meaningful places—evokes romantic nostalgia, increasing relationship commitment, satisfaction, and closeness. 

Making date nights a regular habit—whether weekly, biweekly, or monthly—builds a foundation of trust, intimacy, and mutual support, helping relationships thrive for years to come.

_{ENLIGHTENMENT}

Short Squeez Picks

• The best Rolex watches to invest in

• How to become a more assertive communicator

• When candidates use generative AI for the interview

• Can you breathe stress away?

• How to make your workouts electric to build strength 

_{MEME-A-PALOOZA}

Memes of the Day