Daily Brew // Morning Brew // Update

May 12, 2026

Hey, hey. A new generation is discovering the wisdom of Groucho Marx. Namely, that a fake mustache is an unbeatable disguise. Faced with online safety rules meant to protect them from harmful content, kids in the UK revealed in a recent survey that they’re able to defeat age-verification software by drawing on facial hair. Maybe we don’t need to be scared of the machines taking over after all.

—Dave Lozo, Sam Klebanov, Molly Liebergall, Matty Merritt, Neal Freyman, Abby Rubenstein

In today’s newsletter, we’ll get into:

The housing market’s spring slump
A potential plan for gas prices
Wordle coming to your TV

MARKETS

Nasdaq

26,274.13

+0.10%

S&P

7,412.84

+0.19%

Dow

49,704.47

+0.19%

10-Year

4.410%

+5.0 bps

Bitcoin

$81,725.15

+1.27%

Micron

$795.33

+6.50%

Data is provided by

*Stock data as of market close, cryptocurrency data as of 5:00pm ET. Here's what these numbers mean.

Markets: Like your neighborhood Mexican restaurant, the stock market is relying on chips. The S&P 500 and the Nasdaq both closed at record highs yesterday even as oil rose because chip stocks continued to soar. Micron clinched a record of its own.

NOT BUYING IT

It’s spring but nobody is buying houses

Morning Brew Inc., Photos: Adobe Stock

If you noticed a realtor looking particularly despondent at a recent open house, it’s probably because everyone is eating the free food but nobody is making an offer. Despite expectations for the sluggish housing market to take off during the usually busy spring season, home sales remained flat in April, a sign that a resurgence isn’t likely to happen.

Sales of existing homes rose 0.2% last month—that’s better than the 2.9% they fell in March—but economists surveyed by the Wall Street Journal had anticipated a 3% increase for April after the 30-year mortgage rate dropped below 6% at the end of February. The reasons behind the reluctance to buy property are varied, but they mostly boil down to: “Nobody can afford nice stuff.”

The war in Iran pushed mortgage rates back above 6% and triggered inflation concerns among buyers.
Agents told the WSJ that buyers are also put off by a frozen job market and steep home prices.
The national median existing-home price in April was $417,700, an all-time record high for the month, according to the National Association of Realtors (NAR).

More inventory needed: There were 1.47 million unsold homes on the market last month, the highest number for April since 2019, but still far below the 2 million average that was the norm before the Covid-19 pandemic. Beyond having more people suddenly be able to afford to stop renting, NAR chief economist, Lawrence Yun, told the AP a 30% increase in inventory would help put buyers and sellers on more even terms.

Looking ahead: What happens next may depend on where the current 6.37% mortgage rate goes. WSFS Home Lending president, Jeffrey Ruben, told the WSJ that if the rate falls back below 6%, sales will rise. But if it goes above 6.5%, it could scare away even more potential buyers.—DL

Sponsored By PwC

Mind the AI gap

We bet you can’t go the entire day without hearing about AI. And while that’s all well and dandy, constant presence doesn’t necessarily equal consistent value.

PwC shares that while 43% of CEOs report revenue gains or cost reductions from AI, nearly the same number (42%) say they’re still…stuck.

The gap isn’t about investment. It’s about clarity—knowing where AI can create measurable impact. And PwC has the tools and resources to help you understand where that value can be uncovered in your organization.

Accountability looks like linking initiatives to measurable outcomes, like faster cycle times (up to 60% in software development) or significantly improved operations (e.g., hiring timelines reduced by ~75%).

Forge an approach to AI that fills the gap, not widens it.

WORLD

Tour de headlines

Justin Sullivan/Getty Images

Trump backs gas tax suspension with Iran ceasefire “on massive life support.” President Trump said yesterday he supports suspending the federal gasoline tax “until it’s appropriate” as fuel prices spike amid the Iran war and the closure of the Strait of Hormuz. That suspension would require Congressional approval, but some Republican lawmakers are embracing the idea. The average price of gas has risen 50% since the war began, according to AAA. Meanwhile, the conflict does not appear close to resolution after Trump rejected Iran’s response to the latest US peace proposal. A tenuous ceasefire is in place, but Trump said yesterday, “The ceasefire is on massive life support, where the doctor walks in and says, ‘Sir, your loved one has approximately a 1% chance of living.’”

Elon Musk and Tim Cook among CEOs joining Trump in China. When President Trump arrives in China tomorrow for his high-stakes summit with Xi Jinping—which is expected to cover everything from the war in Iran to AI and Taiwan—he won’t be alone. Instead, he’ll be rolling deep with a crew of business leaders as he works to clinch investment and trade deals. The White House said yesterday that he has invited Tesla’s Musk and Apple’s Cook, as well as executives from other companies, including Boeing, Goldman Sachs, Blackstone, BlackRock, and Meta. One notable absence from the group is Nvidia’s Jensen Huang.

Microsoft CEO testifies in OpenAI trial. The trial in Elon Musk’s lawsuit claiming OpenAI has strayed from its initial nonprofit mission entered its third week yesterday, and it has already had more billionaires speak than any other event taking place outside of a megayacht. Satya Nadella, the CEO of Microsoft, took the stand yesterday. Microsoft is named as a defendant in the case, alongside OpenAI, its CEO, Sam Altman, and its president, Greg Brockman. Nadella testified that his company’s billions in investments in the AI startup were not donations—and that Musk never contacted him to say they violated any special agreements. “We have each other’s phone numbers,” Nadella told the jury. Altman is expected to testify later this week.—AR

SHORT KING IN COURT

The trial that could upend short selling

Andrew Left. Bloomberg Television via YouTube

A landmark fraud trial of legendary short seller Andrew Left began with jury selection yesterday, and the verdict could set an important precedent for pro stock bashers, aka activist short sellers, who publish damaging research about companies and profit from their shares tanking.

Federal prosecutors indicted Left in 2024, claiming he made at least $16 million by weaponizing his massive media reach to manipulate markets with dishonest commentary about stocks like Nvidia and Tesla. Left’s defense will likely argue that he shared sincere stock opinions protected by the First Amendment.

Is Left right?

In the 2010s, Left earned clout by exposing fraud at Valeant Pharmaceuticals and debt issues at China’s real estate giant Evergrande. But prosecutors claim that, in later years, he engaged in chicanery:

They’re accusing him of cashing in on short-term stock swings caused by his viral posts and TV appearances, while misleading investors about his exposure to those stocks.
Left is also charged with concealing his deals with hedge funds affected by the stock moves.

Left maintains that he’s being unfairly targeted due to his influence, and that there’s no clear requirements for prominent market commentators to disclose their trades.

Big picture: A guilty verdict could send Left to prison for up to 25 years and undermine the bread and butter of activist short sellers, a group that’s already hurting due to losses from meme stock rallies.—SK

Nursing trivia

Today is International Nurses Day, held on May 12 to commemorate the birthday of which English woman considered the founder of modern nursing?

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Word of the Day

Today’s Word of the Day is: despondent, meaning “feeling extreme discouragement.” Thanks to Erik from Warren, PA, for giving us some hope with the suggestion. Submit another Word of the Day here.

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