Wall Street’s Summer of Hell

Hello, I’m Matt Turner, Business Editor at Insider. Welcome to Insider Weekly, a roundup of some of our best stories.

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But first: Senior Insider Correspondent Linette Lopez is here with a look at the market’s eventful week.

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Wall Street’s hellish summer is here

Wall Street bull in the sun

Jenny Chang/Insider; Getty Images

A week ago, I wrote that Wall Street was “heading for a hellish summer.” Well, looks like that hellish summer came early.

Since I wrote this article, the market has done almost nothing but fall, posting the worst trading days since the first weeks of the pandemic. And while the sale is lousy, it’s clearly not over.

The market is rapidly falling back to where it was before the start of the pandemic – and the stimulus-infused mega rally. And thanks to more than a decade of incredibly low interest rates, many investors think even the current level is inflated.

In the article, I called out the tech industry, which has been riding the wave of a strong economy for years and is finally facing its first real setbacks and (in some cases) layoffs.

“The kiss of death for tech is when tech starts talking about profitability — then the tide goes out and you find out who swam naked,” Justin Simon, portfolio manager at Jasper Capital, told me.

But that’s not all. Last week, bread and butter retailers Target and Walmart reported earnings that fell short of Wall Street expectations. These consumer giants admitted they were starting to feel the sting of inflation and other economic pressures.

As I said in my story, “This summer the market is melting, and investors big and small are going to get burned before it’s over.”

Read Linette’s full story here:

Airbnb hosts affected by summer slowdown

Florida shore house

Airbnb is home to Brian Morris’ rental in Santa Rosa Beach, Florida, where July revenue is expected to drop $12,000 from a year ago.

Brian Morris

In May 2021, when domestic travel and the short-term rental market were booming, travelers kept Airbnb properties in high demand. Today is a different story.

There is no shortage of theories about slowing down. Some say overseas travel is diverting traffic from domestic travel, while others believe record fuel prices have made customers less inclined to get in the car. One thing is certain: vacation rentals are booming.

While seeing their bookings plummet, many hosts are getting frugal to insulate themselves from the current market climate.

Read the full story here:

Former prosecutor defending Leon Black

Prosecutor Danya Perry next to Leon Black and Ronan Farrow, in front of Andrew Cuomo and Schneiderman 4x3 cork collage

Patrick McMullan/Karwai Tang/Keith Levit/Pool/Platt/Getty Images; Lucy Nicholson/Reuters; Rachel Mendelson / Insider

Former prosecutor Danya Perry stood up to Andrew Cuomo and Eric Schneiderman. She is now defending billionaire Leon Black against rape charges.

Perry’s defense of Black, the former CEO of Apollo Global Management, may seem incongruous with his background. But interviews with several dozen people who know her paint a picture of a woman who has long operated in Black circles — and repeatedly makes controversial choices based on what she thinks is right.

Read the full story here:

Is Miami still the next Silicon Valley?

Miami, Florida

Sylvain Sonnet/Getty Images

During the pandemic, the tech industry has spread across the United States — and the geographically freed workforce has found its way to new places like Miami Beach.

But now the US tech sector is on hot coals. Markets are collapsing, startup valuations are plummeting, and tech companies are announcing layoffs daily.

The industry’s uncertain future begs the question: Can Miami become the new Silicon Valley — or will it become a cautionary tale about placing all your bets on a bubble?

Read the full story here:

35 Under 35: The future of the electric vehicle industry

From left Weimin Wang, Sandhya Srinivas, Esther Unti and Vartan Badalian

Vartan Badalyan; Sila Nanotechnology; Lucid; Sandhya Srinivas; Savanna Durr / Insider

The electric vehicle industry is a competitive space. Cars are essential, of course, but so are batteries, supply chains, fleet management and charging infrastructure. These businesses are complex operations that depend on razor-sharp talent to keep everything running smoothly.

Insider scoured the market and identified 35 people under the age of 35 who we believe are most likely to advance in the industry.

From co-founders and CEOs to engineers and scientists, the rising stars of the electric vehicle industry have a bright future ahead of them.

Read the full story here:

This week’s quote:

“A million dollars may seem like a daunting number, but regardless of your wealth or income, it’s truly achievable if you have the right mindset. Make a solid plan, adjust your budget as your income grows, and always put savings first.”

More of this week’s best reads:

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Organized by Matt Turner. Edited by Lisa Ryan and Hallam Bullock. Sign up for more Insider newsletters here.

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