Wolfspeed Gets a $1.5B Jolt ⚡

Welcome to LazyListen. This is The Daily Rip for today. Stocks pulled back Wednesday, ending a four-day winning streak as Treasury yields pushed to levels not seen since 2002.

The Federal Reserve’s September meeting minutes, released mid-afternoon, shifted market expectations on the path of interest rates, sending the S&P 500 and Nasdaq down about two-tenths of a percent, the Dow off seven-tenths, and the Russell 2000 down more than one percent. The 10-year Treasury yield climbed above five point three six percent before a large bond auction helped ease the spike, but the Fed’s message kept the door open for another rate hike by year-end. Only one sector managed a gain—health care, up one percent—while industrials fell sharply, down over two percent.

Oil prices slipped below eighty-eight thirty, and Bitcoin dropped two and a half percent. Retail chatter was lively around names like Applied Digital, Webull, BlackBerry, and Capricor, though none moved the broader market. Looking at the Fed minutes, all nineteen officials unanimously agreed on the September quarter-point rate increase, raising the target range to three point seven five to four percent.

Inflation remains sticky, the labor market firm, and strong investment in artificial intelligence is keeping the economy hotter than expected. Most Fed participants see another hike likely before the end of the year, though timing remains uncertain. Market futures currently price in less than a twenty percent chance of a hike at the October meeting.

-focused data centers, reported a blockbuster revenue jump of over three hundred percent to nearly three hundred and forty-two million dollars. Adjusted revenue came in at just over three hundred million, and the adjusted loss narrowed to a penny per share. However, GAAP results showed a wider loss of two hundred twenty-one million dollars, driven by heavy interest expenses and stock-based compensation.

The company is aggressively expanding, with two hundred fifty megawatts operating now and plans for three hundred megawatts by year-end. Capital spending hit two point one billion dollars last quarter, leaving Applied Digital with over six billion dollars in debt against about three point seven billion in cash. I.

data center buildout is real, but so is the hefty price tag. S. production of silicon carbide materials and power chips.

The initial tranche could be six hundred million dollars, with up to one point five billion dollars available over three years. This funding aims to refinance existing debt and expand capacity in silicon carbide and gallium nitride technologies, critical for electric vehicles and renewable energy. However, the deal is not guaranteed—final agreements, approvals, and at least seven hundred fifty million dollars from outside investors are still needed.

The Pentagon may also receive warrants for up to seven and a half percent of the company’s equity. Wolfspeed’s stock jumped twenty-five percent in after-hours trading, though it closed down slightly in regular hours. Notably, short interest remains high at nearly fifty percent of the float, so the rally could reflect short covering or new optimism about government support.

On the regulatory front, Webull’s stock plunged nineteen percent after a House panel raised concerns about the company’s ties to China. S. customer data or impose operational restrictions, but it put regulators on alert.

S. customer data is stored domestically with controlled access. Still, the news triggered a selloff and led some analysts to suspend buy ratings, citing uncertain regulatory risks.

S. markets. I.

5, a smaller, faster, and significantly cheaper model designed for high-volume tasks like classification and summarization. 1. I.

services. I. models is clear, fueling broader adoption and innovation.

Among quick movers, industrial giants Caterpillar and Strategy stocks took hits amid the broader sector weakness. Energy names saw modest pressure alongside the dip in oil prices. Cryptocurrencies like Bitcoin also retreated, mirroring risk-off sentiment.

Looking ahead to Thursday, keep an eye on weekly jobless claims and unemployment insurance reports early in the morning, which will offer fresh insight into the labor market’s resilience. The GDPNow estimate and wholesale trade data will also drop before the open, providing clues on economic momentum. Consumer sentiment from the University of Michigan arrives mid-morning, rounding out a busy macro day.

Earnings to watch include Tilray Brands and PepsiCo before the bell, with Nurix Therapeutics, Park Aerospace, and Oil-Dri reporting after markets close. Thanks for listening. Catch you next time on LazyListen.