WHCD gunmen appeared in court today; after 12 consecutive gains in the Nasdaq, the Mag 7 companies all reported this week, and Microsoft issued buyout checks to employees for the first time in its 51-year history.
1｜WHCD gunman appeared in court today; suicide letter reveals action plan “in order of official rank from highest to lowest”
CBS obtained the full text of Cole Allen’s suicide note. He sent the document to his family about 10 minutes before shooting, identifying himself as the "Friendly Federal Assassin," and listed targets ranked by official rank from highest to lowest, stating he would only attack law enforcement "when necessary." The note did not name Trump, but cited federal operations against suspected drug vessels in the Pacific as one of its motivations.
Allen, 31, graduated in mechanical engineering from Caltech in 2017 and is set to earn his master’s in computer science from Cal State Dominguez Hills in 2025. He traveled by train from California across multiple states carrying a shotgun, a handgun, and multiple knives, arriving in Washington. One law enforcement officer was struck in a bulletproof vest and is expected to recover. U.S. Attorney Jeanine Pirro confirmed that Allen will be charged with three counts and appeared in court today. On the same day as the shooting, King Charles III of the United Kingdom arrived in Washington to begin a four-day state visit—the first visit by a British monarch to the U.S. since 2007—adding unprecedented levels of security pressure. (Continued from yesterday’s report)
(Source: CBS / Fortune / NPR / Fox News / Washington Post / White House)
2｜ Nasdaq posts 12 consecutive gains, setting a record since 2009; this week, five of the Mag 7 companies report results
The S&P 500 closed at 7,165 last Friday, and the Nasdaq closed at 24,837, both setting new all-time highs. The Nasdaq has now risen for 12 consecutive trading days, marking its longest winning streak since 2009. This rally was driven by Tesla’s better-than-expected earnings, the extension of the ceasefire in Iran, and continued strength in AI chip stocks. Since April, the S&P has risen over 9%, the Nasdaq over 15%, and the Dow over 6%.
This week is the real test. Meta, Apple, Amazon, Alphabet, and Microsoft will release their Q1 earnings concentrated on Wednesday and Thursday, accounting for a quarter of the total market cap of the S&P 500. Wall Street expects these five companies to post 24% earnings growth, while the remaining 493 companies are projected at just 7%. The combined AI infrastructure budgets of the four major cloud providers have exceeded $200 billion, and the central question in every earnings call is the same: Are these massive investments delivering corresponding returns? The Buffett Indicator (total U.S. stock market cap/GDP) has risen to 227%, and he himself has said that anything above 200% is “playing with fire.” Overnight futures declined as stalled Iran negotiations and renewed escalation in the Strait of Hormuz pushed oil prices higher. Historical highs and fear are appearing on the same screen.
(Source: CNBC / Yahoo Finance / Fortune / S&P Global)
3｜Microsoft makes its first voluntary buyout in 51 years; after cutting 16% of its workforce, Snap used AI to write 65% of the code
Last Wednesday, Microsoft announced a voluntary buyout offer to approximately 7% of its U.S. employees (about 8,750 people), with eligibility based on a combined age and years of service totaling 70. This is the first time in Microsoft’s 51-year history that a voluntary exit program has been initiated. Notifications were sent to eligible employees on May 7. Last summer, Microsoft laid off 9,000 people; this time, it is achieving the same outcome without generating headlines about mass layoffs.
Snap took a different path. On April 16, it laid off approximately 1,000 employees, or 16% of its full-time workforce. CEO Spiegel directly cited the reason in an internal memo: AI now generates over 65% of Snap’s new code. The company expects this restructuring to save more than $500 million annually by the second half of the year, and its stock rose 8% on the news. Alongside Meta’s layoff of 8,000 employees and its $135 billion investment in AI, over 92,000 people have been laid off in the U.S. tech industry this year. The decisions to cut jobs and invest money stem from the same budget sheet.
(Source: CNBC / Bloomberg / TechCrunch / Fortune / Fox Business)
4｜Cohere merges with Aleph Alpha for $20 billion; Lidl’s parent company invests $600 million in sovereign AI
Last Thursday, Canadian AI company Cohere announced its merger with Germany’s Aleph Alpha, resulting in a combined valuation of approximately $20 billion. The Schwarz Group (parent company of Lidl supermarkets) led a $600 million Series E round, with its cloud service STACKIT set to host the merged entity’s sovereign AI products. Cohere shareholders will hold approximately 90% of the combined company. Both the Canadian and German governments have endorsed the transaction.
Sovereign AI is the core logic behind this transaction. An increasing number of governments and regulated industries require data to remain within national borders, models to be auditable, and vendors to be outside U.S. jurisdiction. A McKinsey report from March estimates this market size at approximately $600 billion. Cohere’s customers are already primarily focused on enterprises and governments, while Aleph Alpha has deeply cultivated flagship clients such as the German federal government in Europe. This merger is not about catching up with OpenAI ($25 billion in annualized revenue) and Anthropic ($19 billion), but rather carving out a segment they cannot access.
(Source: Axios / BusinessWire / TipRanks / IT Pro / The Next Web)
It's also worth knowing ↓
Oil prices: Brent at $105.33 / WTI at $94.40; shipping through the Strait of Hormuz has not resumed during the ceasefire. A UN report confirms the ceasefire has not substantially lifted the blockade, with vessels still being intercepted and even fired upon. Trump canceled plans to send Witkoff and Kushner to Pakistan for negotiations, saying talks over the phone would suffice. Iran’s Foreign Minister Alireza Araghchi, after stopping in Pakistan, traveled to Moscow to meet with senior Russian officials. (Sources: UN News / Al Jazeera / CNBC / Washington Post)
Apple’s CEO transition is entering its final countdown. John Ternus will assume the role on September 1, while Cook steps into the role of Executive Chairman. Ternus, head of hardware engineering, inherits two major challenges outside his expertise: Apple’s AI strategy lags competitors by one to two years, and while the Chinese market is recovering, supply chain diversification is undermining the “China-defined” model of Cook’s era. (Source: Apple / Fortune / CNBC)
Tesla's capital expenditure has increased to $25 billion, compared to $8.5 billion in the same period last year. During the Q1 earnings call, it was confirmed that the Fremont factory will cease production of the Model S and Model X to shift toward manufacturing Optimus humanoid robots. Autonomous taxi services are already operational in four cities, and free cash flow will turn negative in the second half of the year. (Source: CNBC / TNW / Seeking Alpha)
Adyen acquires Talon.One for €750 million, its first acquisition since inception. Talon.One provides loyalty infrastructure for over 300 brands, including Nordstrom and H&M, with annualized revenue of approximately €60 million. The payment company is evolving from transaction processing to a full-stack commerce platform. (Source: Finextra / American Banker / PYMNTS)
PwC: 75% of AI economic gains are captured by 20% of companies. Leading companies use AI for growth, while most use it for cost reduction. The concentration of gains is higher than during the internet era. (Source: PwC)
Bitcoin 2026 opens today in Las Vegas, with SEC Chair Atkins participating in a fireside chat. This is the first time a sitting SEC Chair has attended the Bitcoin Conference, and CFTC Chair Selig will also join on stage. In the same week, the Wisconsin DOJ sued five platforms, including Kalshi, Polymarket, and Coinbase, alleging that prediction markets constitute unlicensed gambling. (Source: SEC.gov / Bitcoin 2026 / CoinDesk / Crypto Times)
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