Good morning. Hope you all have an exciting Saturday planned. If you're hanging out with some folks who don't already get the Brew, you might want to slide them your referral code. Readers who share the newsletter with three people before 11:59pm tonight will have a chance to win $1,000 in cash. We say "readers" because five people will win $1k each. Share to win—Neal Freyman, Jamie Wilde | | | |  | Nasdaq | 13,768.92 | | | | | S&P | 4,397.94 | | | | | Dow | 34,265.37 | | | | | 10-Year | 1.763% | | | | | Bitcoin | $36,735.32 | | |  | Peloton | $27.06 | | | | *Stock data as of market close, cryptocurrency data as of 7:00pm ET. Here's what these numbers mean. | - Markets: The S&P and Nasdaq suffered their worst week since the pandemic began, tumbling 5.7% and 7.55%, respectively. But whad'ya know, Peloton bounced back after Thursday's wipeout when CEO John Foley assured employees that execs "feel good about right-sizing our production."
- Covid: A third dose of either Moderna or Pfizer-BioNTech's Covid vaccine provided significant protection against severe disease in the US, according to three real-world reports that dropped yesterday. One analysis showed that the boosters were 90% effective at preventing hospitalization.
| | ![Kermit staring out a window with the caption]() Neal Freyman / Imgflip / Jim Henson Company Not sure if you've looked at your investment portfolio recently, but…don't. It's been a brutal couple of weeks in the markets, particularly for riskier assets like tech and crypto that have been spooked by the Fed's pivot to hike interest rates. Let's survey the damage. Tech The tech-heavy Nasdaq has fallen deeper into "correction" territory, indicating it's dropped at least 10% from its peak last November. - More than 70% of Nasdaq stocks have fallen at least 20% from a recent high, which means they're technically in a "bear" market.
- More than half of Nasdaq stocks are down 40% or more, which is so egregious they don't even have an animal name for it.
Weighing down the Nasdaq yesterday was Netflix, whose 21.8% drop was its worst day since 2012 (investors are squeamish about the company's slower subscriber growth). But it's not like everyone else was in a position to brag: Big Tech names like Meta and Tesla also dipped; Amazon had its worst week since 2018. Crypto It's been an especially cold winter out on the blockchain. $1.17 trillion has been wiped off cryptocurrencies' market value since bitcoin's peak in November. The token itself has fallen 40% from its all-time high and hit a six-month low yesterday. As always, blame Matt Damon. As for the meme coins that became popular last year…they stopped being funny when everyone started losing money. Dogecoin, for instance, is down 80% from the record high it set before Elon Musk hosted SNL. SPACs In this inhospitable market, companies that were preparing to list on stock exchanges via SPACs are thinking twice. Seven SPACs, or blank-check companies that hunt for acquisition targets and take them public, have canceled their IPOs since Jan 1. - Compare that to the SPAC frenzy of 2021, when just three SPACs pulled their IPO plans in the first 11 months of the year.
What's going on? This heavy selling of expensive, riskier assets appears to be linked to rising bond yields and the Fed's decision to wind down its pandemic-era stimulus measures to combat spiraling inflation. Next week could bring even more volatility to markets: Apple and Tesla will hope to avoid becoming Netflix 2.0 when they report earnings. And the Fed will give an update on its interest rate hike timeline at the conclusion of its meeting on Wednesday.—NF | | A rendering of the Ohio plant. Source: Intel. Intel is doing what LeBron James didn't and making a long-term commitment to Ohio. The semiconductor giant said it's building a massive chip complex just east of Columbus. How massive? Well, the company will initially spend at least $20 billion on two plants, which Ohio Gov. Mike DeWine said is the largest private-sector investment in the state's history. But if things go well for Intel, that investment could balloon to up to $100 billion for eight fabrication plants. In that case, it would likely be the largest chipmaking complex in the world. Big picture: Because of semiconductors' crucial role in so many products, from smartphones to cars, these days a chip plant isn't just a chip plant—it's a geopolitical flex. The debilitating chip shortage during the pandemic has highlighted the strategic importance of being able to make your own chips as a country, something the US has done much less of in the past few decades. In 1990, the US accounted for 37% of all semiconductor manufacturing. Last year it was down to 12%, after losing out to Asian countries like Taiwan and China. Intel's investment, plus Samsung's recent plan to build a $17 billion plant in Taylor, TX, shows the US is on its way to clawing back market share.—NF | | Brooks Kraft LLC/Corbis via Getty Images The Biden administration rolled out new immigration policies that will make it a little easier for international science, technology, engineering, and math (STEM) students to study and work in the US. The loosening of rules was cheered on by business groups, which have argued that more immigration could help cool inflation and address the severe worker shortage. The biggest change made yesterday adds 22 new fields—including data science and financial analytics—under the STEM umbrella, a designation that lets students work in the US for three years after they graduate rather than the one afforded to other international students. Zoom out: Over the last five years, international student enrollment at US colleges has declined, in part because those students are choosing to study in other English-speaking countries like the UK and Canada—where a degree costs less, the path to becoming a citizen is clearer, and your queen rocks cool hats. That's a concerning trend since immigrants, specifically in the sciences, well…they get the job done. - International students on temporary visas account for more than 50% of US doctoral degrees in economics, computer sciences, engineering, and math and statistics, per the National Science Board.
- But China is gaining fast and is set to pass the US as the country that generates the most STEM doctorate graduates.
Looking ahead…the most impactful changes to immigration policy, such as making more visas available or expanding eligibility, are up to Congress to make.—JW | | | Your morning routine is immaculate. You say yes to exercise and breakfast, and no to predawn doomscrolling. So why are you still tired, foggy, and stressed? You need a boost, and organifi's green juice is here to give it to you. Specifics? We gotchu. Green Juice contains KSM-66 ashwagandha, an extract that's proved effective in lowering cortisol levels. High cortisol levels lead to vibe killers such as brain fog, fatigue, and poor sleep. Green Juice is packed with adaptogenic superfoods—ingredients that fight the harmful effects of stress and keep you at a cool 10/10. Best of all, Green Juice is delicious. Just mix with water and let the "minty matcha" flavor launch you into a clearer, calmer, more energized day. No residue, no creepy ingredients. Just Mother Nature's goodness in a glass. Order today for 25% off plus free shipping. | | NOAA/NASA Stat: It's been one week since an undersea volcano erupted near the Pacific nation of Tonga, and we're still learning more about how remarkably huge it was. - An organization that monitors atomic testing said it was bigger than the largest nuclear detonation ever conducted.
- It sparked nearly 400,000 lightning events in the hours following the eruption.
- It was quite literally a "once-in-a-millennium" event because it takes that volcano 900–1,000 years to fill up with magma.
Quote: "I'm so sorry but my show ain't ready." An emotional Adele announced on social media that she had to cancel her entire 24-show Las Vegas residency that was set to begin last night. She said half her team was out with Covid. Watch: An argument that TikTok is dramatically underpaying creators. (Hank Green) | | Illustration: Dianna "Mick" McDougall, Photos: Getty Images On Nifty Gateway, a leading NFT platform, male artists account for 77% of primary and secondary NFT sales. Just one woman, the pop artist Grimes, cracked the top 10 bestseller list for her whimsical NFTs. But a growing cohort of women NFT artists is breaking into the space and laying the foundation for a more equitable metaverse. Brew writer Amanda Hoover talked to those female artists—read what they said here. | | - A federal judge blocked President Biden from enforcing a vaccine mandate for federal workers (the vast majority are already vaccinated).
- 34 Activision Blizzard employees formed the first ever union at a publicly traded video game company.
- Treasury Secretary Janet Yellen branded Biden's economic priorities of infrastructure, research, and education as "modern supply-side economics." It's a play on the Republican idea of "supply-side economics," which advocated for tax cuts and deregulation.
- The NFL will be playing four divisional playoff games this weekend.
| | The world's best innovators are calling Ohio home. Yet another tech giant is making its move to the state: Intel. Ohio offers business leaders and employees with resources to thrive, so naturally, companies are puttin' down roots. See how businesses grow in OH here.* Spend less money on your money. Wealthfront's Tax-Loss Harvesting tool means it's working to lower the taxes you owe—which means more money to invest. Plus, their software automatically handles trading and regularly rebalancing your portfolio. Get started with Wealthfront here.* Two interesting videos: 1) 24 hours of trains in the Netherlands 2) Why do grocery stores still have ethnic aisles? Weekend conversation starters: *This is sponsored advertising content | | So don't miss your chance to win $1,000 in cash and do something crazy like turn your living room into an epic home gym. Here's how it works: Get just three referrals to the Brew before 11:59pm tonight and you'll be entered into a raffle to win $1,000. There will be five winners, so your chances aren't as slim as you think. Don't let this opportunity slide. Share the Brew now*Only readers with a US address are eligible to participate. Here are the terms and conditions. | | | ✤ A Note From Wealthfront Morning Brew receives cash compensation from Wealthfront Advisers LLC for sponsored advertising materials. Morning Brew is not a client and this is a paid endorsement. Please click here for further details. | | | Written by Neal Freyman and Jamie Wilde Was this email forwarded to you? Sign up here. | ADVERTISE // CAREERS // SHOP // FAQ
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