Crypto News: AI trade tested

Good morning. Markets are uneasy about the AI rally but banks are getting hyped about SpaceX. A deadly cattle parasite stalks the US. And how the crackdown on H-1B visas is hurting home prices in Texas. Listen to the day’s top stories.

— Lucy Meakin

Market Snapshot
S&P 500 Futures	7,540.75	-0.4%
Nasdaq 100 Futures	30,289.75	-1.1%
Bloomberg Dollar Spot Index	1,203.99	-0.1%
Market data as of 06:28 AM ET. Data is subject to provider delays.	Your watchlist

Stock futures fell after a disappointing outlook from chipmaker Broadcom raised concerns that the blistering rally in technology shares has gone too far. Adding to the unease, TSMC warned chip supply will lag demand for years.

Excitement around SpaceX’s initial public offering is building, though. JPMorgan CEO Jamie Dimon is stepping up to pitch it himself to thousands of the bank’s ultra-rich clients. Over at Goldman Sachs, sculptures of silver rockets sprouted in the lobby to celebrate their role in the deal, while rival (and ahem, IPO co-lead) Morgan Stanley blanketed its headquarters’ elevators and turnstiles with SpaceX branding.

Odd Lots

Goldman’s Boss Says AI Jobs Apocalypse Isn’t Coming to Wall Street

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The US said Israel and Lebanon agreed to a ceasefire if Hezbollah also stops fighting, the latest attempt by the Trump administration to keep peace talks with Iran on track as political opposition to the war intensifies. But fighting persists, and Iran said there’s been no progress in its own talks with the US.

The deadly new world screwworm was confirmed in the US for the first time in nearly a decade, posing the latest threat to a cattle herd already at its lowest level in 75 years. The USDA is taking measures to contain the parasite and said there’s no reason to believe it will gain a foothold, but the news comes at a dire time for the industry that’s already sent sent beef prices climbing to a record high. Here’s why authorities are worried.

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Deep Dive: Grid Concern

Soaring US power bills are threatening to claim their biggest victim yet—the nation’s largest electric grid operator.

Power prices on PJM Interconnection, which runs the grid from the Illinois prairie to the Jersey Shore, jumped 76% in the first quarter due to rampant demand from data centers.
Federal officials have suggested breaking up PJM. The top US energy regulator said it may be too big to function adequately, and one of the largest electric utilities in its territory—American Electric Power—has threatened to leave.
Even PJM’s own boss has called the current situation “not tenable,” saying his organization can’t ensure ample future electricity supplies while shielding residential consumers from rising bills.
With the midterm elections just months away, the issue of surging energy costs is drawing increasing scrutiny from politicians and voters alike.

The Big Take

Texas housing rode a wave of manufacturing and tech expansion as H-1B visa-fueled hiring brought in thousands of Indian-born software engineers and other skilled workers. Now, tighter rules and AI-driven hiring shifts are cooling home prices, slowing population growth, and threatening the tax base that funds schools and roads. Watch the video here.

Big Take Podcast

Inside Dallas’ High-End Real Estate Bust

Opinion

Everyone is piling in on the bet that AI will make companies more profitable and productive. But the truth is messier, Parmy Olson writes. Companies are being forced to confront the question of whether the technology is useful enough to justify the bill.

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Before You Go

The AI boom minted a swathe of new millionaires last year. Stock rallies driven by the technology helped propel an extra 2 million individuals into the millionaire ranks, with the world’s rich now overseeing almost $100 trillion—only slightly less than global GDP.

One More

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Bloomberg Power Players - New York: Set against the backdrop of the US Open Tennis Championships, Bloomberg Power Players returns on Sept. 10. From athletes and team owners to commissioners and investors, this event will gather the most influential voices for market-moving conversations on the multitrillion-dollar sports economy. Learn more here.