Is CoreWeave’s Debut an Ill Omen for I.P.O.s? [DealBook]
The company, which rents computing power to the artificial intelligence industry, shrank its I.P.O. far below initial expectations before Friday’s anticipated trading debut. That’s even after Nvidia, which owns a stake in the company, committed to buy more shares as part of the offering…. How much of a litmus test is CoreWeave’s I.P.O.? While the company is the first major A.I. business to go public, it doesn’t represent the true titans of the field, makers of large language models like OpenAI and Anthropic.
Why the American consumer is fed up [CNN]
The Yale Budget Lab earlier this month estimated that Trump’s tariffs could cost the average household $2,000 in inflation-accounted disposable income a year….
Now, if we were only dealing with tariffs, it would be one thing…. The issue is that prices have already gotten much more expensive over the last five years because of heightened inflation.
Jefferies Results Suggest Wall Street Down but Hardly Out [WSJ]
Jefferies Financial Group reported its first-quarter earnings late on Wednesday, showing a nearly 4% year-over-year drop in capital markets and investment-banking revenue. The analysts who follow the company had been expecting a jump of more than 10%…. Still, Wall Street isn’t in hibernation, nor are indicators of corporate risk surging. Jefferies did report a year-on-year jump in debt-underwriting revenue. That suggests that borrowers are still finding a receptive market if, for example, they want to refinance and lock in today’s rates to sidestep whatever might be coming in the next year or two.
Senate Overturns Rule Limiting Bank Overdraft Fees to $5 [NYT]
Democrats are preparing to fight the resolution in the House, where they hope the slim Republican majority will work in their favor…. “Repealing the C.F.P.B.’s overdraft fee limits will hurt working families who are already struggling with high prices and inflation,” said Chuck Bell, the advocacy program director at Consumer Reports.
SEC halts legal defense of climate risk disclosure rule [Reuters via CNBC]
The Commission adopted the rule last year, aiming to give investors information about the buildup of climate risk and associated costs in the financial system. The agency cited strong demand from investors for such disclosures…. The SEC’s lone Democratic member, Caroline Crenshaw, denounced the decision, saying it unlawfully sought to undo valid regulations by ceasing to defend them in court, rather than following procedure to change them or create new ones.
Trump pardons Trevor Milton — one-time Elon Musk rival convicted of fraud [N.Y. Post]
It’s unclear who advocated internally for Milton to receive clemency following his 2022 conviction on three counts of fraud involving Nikola — which like Tesla is named after the pioneering Serbian-American engineer…. Trump has repeatedly and publicly sympathized with businessmen accused of misconduct, citing his own legal woes in New York over the valuation of his assets and claiming prosecutors can make false claims to skewer their target….
