Forbes Daily: Earnings Optimism Drives S&P 500 To New Heights

Moving out of poverty and achieving financial success is a core tenet of the American Dream—but has become increasingly difficult to achieve. A group of billionaires wants to reverse that trend.

The charitable foundations of Bill Gates, Charles Koch, Steve Ballmer, Intuit founder Scott Cook and hedge fund investor John Overdeck pledged more than $1 billion Thursday to a new philanthropic entity that, in partnership with AI giant Anthropic, will support organizations focused on using AI and other emerging technologies to help low-income Americans.

The organization, NextLadder Ventures, hasn’t made any funding commitments yet, but there are a number of organizations that fit the mission—from a nonprofit that has developed a platform to connect people in need with groups that provide a variety of resources, to a startup that can expunge criminal records at a much lower cost.

FIRST UP

President Donald Trump said he directed Attorney General Pam Bondi to release grand jury testimony in the Jeffrey Epstein case on Thursday night, shortly after threatening to sue the Wall Street Journal and its owner, Rupert Murdoch, over what he claimed was a “FAKE” report. The Journal report alleged that a sexually suggestive letter gifted to Epstein for his 50th birthday in 2003—with a drawing of a naked woman—bore the president’s name and signature.

Strong earnings and economic data catapulted the S&P 500 to an all-time high Thursday, with companies like PepsiCo, United Airlines, Nvidia and Microsoft fueling the gains. As of Thursday afternoon, about 50 companies listed under the S&P had reported earnings for the second-quarter, and 88% of them surpassed projections, data show.

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BUSINESS + FINANCE

Paid users can now use ChatGPT for more complicated tasks like creating slide decks or purchasing ingredients, thanks to OpenAI’s just-launched “ChatGPT Agent,” which marks the company’s biggest entrance into increasingly popular AI task management applications. The AI behemoth said the new capabilities come with risks, because while it has added safeguards, malicious prompts on webpages could trick the agent into sharing private data.

The $8 billion Facebook privacy trial ended Thursday, as Meta CEO Mark Zuckerberg and other executives reached a settlement with a group of the company’s shareholders. The shareholders had alleged Zuckerberg, former COO Sheryl Sandberg and other billionaires tied to the company violated a Federal Trade Commission agreement by sharing user data with third-party apps without their consent.

WEALTH + ENTREPRENEURSHIP

Investor Nasir Qadree is on a mission to disrupt the venture capital world: In June, his firm Zeal Capital Partners closed on an $82 million raise for its third fund, which it will use to invest in 25 early-stage companies building enterprise AI software in education, finance, and healthcare. Out of more than 1,000 women- or minority-owned private equity and venture capital firms in the U.S., just 168 are Black-owned. “Diversity will always be part of our DNA,” Qadree says.

TECH + INNOVATION

As investors pour money into AI code-writing startups, two-year-old firm Lovable has raised $200 million in Sweden’s largest-ever Series A round, earning it a $1.8 billion valuation as it joins the ranks of the country’s unicorns, which include Klarna and Spotify. Lovable and its American competitors Replit and StackBlitz have seen huge growth over the last year, using large language models to turn simple written instructions into websites and apps in minutes.

MONEY + POLITICS

The House approved several crypto bills Thursday, including a regulatory framework for stablecoins, a cryptocurrency often tied to the value of the U.S. dollar or another asset, after a revolt from some conservatives blocked the package during what the GOP is calling “crypto week.” The act establishes guidelines for banks and other entities that issue stablecoins and protections for stablecoin holders, as well as bans the Federal Reserve from issuing a central bank digital currency.

The House voted to approve the White House’s request to scrap $9 billion in previously approved funding for foreign aid and public broadcasting Friday, sending the matter to President Donald Trump’s desk, after a delay caused by a clash in the narrowly divided chamber over the Epstein files. The rescissions package will allow the Trump administration to claw back $1.1 billion in funding from the Corporation for Public Broadcasting, which helps fund public broadcasters like PBS and NPR, and approximately $8 billion from foreign aid programs, including allocations to USAID.

SPORTS + ENTERTAINMENT

Executives at CBS and its parent company, Paramount, announced the cancellation of “The Late Show with Stephen Colbert,” saying it was a “purely a financial decision.” Several Congressional Democrats questioned the timing of the move, which came just days after the comedian criticized the media giant over its decision to pay $16 million to settle a lawsuit brought by President Donald Trump.

DAILY COVER STORY

Inside America’s Top Small Business Bank

If small business is the beating heart of America’s $30 trillion economy, then it might be surprising to find out that the loans that help sustain it come not from Wall Street, but from a tiny branchless bank in Wilmington, North Carolina.

Founded in 2008, Live Oak Bancshares has 1,053 employees, $14 billion in assets, and a $1.5 billion market capitalization. Since 2017, it has issued $15.4 billion in government-backed 7(a) loans, more than any other bank in the country. The 7(a) program is the Small Business Administration’s flagship offering, designed to help small businesses that might not qualify for conventional credit. Live Oak’s average loan is just $1 million, chump change for bigger, brand-name competitors, but the lender does around $2 billion a year in SBA loans, plus another $3 billion in conventional small business loans.

And while most people think of small business lending as a handshake deal at the local bank down the street, Live Oak has flipped that on its head. It leans on tech instead of geography, with a fintech venture arm and a track record that includes spinning out the $3.4 billion market capitalization cloud-based banking software firm nCino. That edge in technology helps it approve loans faster.

The lender does other mission critical tasks differently as well.

Loan officers don’t earn commissions, a move designed to avoid conflicts between sales and credit. The bank sticks to industries where it has subject matter expertise. It started by lending to veterinarians because its CEO Chip Mahan’s stepfather is a well-known equine vet. Today, Live Oak focuses on 35 industry verticals, including home health care, funeral homes and auto repair.

WHY IT MATTERS “It’s hard for regular investors to get exposure to small business,” says Forbes reporter Brandon Kochkodin. “Live Oak is a rare exception. It’s a public company built entirely around lending to small businesses, with a track record of using technology to grow and adapt. It’s also launching new efforts in high-cost lending, with an eye toward bringing structure and transparency to a messy corner of the market. For anyone who wants to bet on Main Street, this is one of the few ways in.”

MORE SBA Loan Limit May Double To $10 Million, But Not For Every Small Business

FACTS + COMMENTS

The FDA authorized Juul’s e-cigarettes Thursday, a major win for the company after it faced a marketing ban from the agency and shelled out millions to settle a class action lawsuit. It comes as Health and Human Services Secretary Robert F. Kennedy Jr. continues to shake up the department:

2022: The year the FDA moved to ban Juul products, but an appeals court allowed the company to continue selling pending an appeal, and the FDA later temporarily suspended the order

$438.5 million: The settlement amount stemming from a lawsuit filed by dozens of states over claims that Juul marketed its products to teenagers

$300 million: The amount the company paid out to previous users in a class action settlement regarding the product’s addictiveness

STRATEGY + SUCCESS

If your work life is getting stale or you’re feeling stuck, it’s worth remembering that many professionals reach a point where they’ve outgrown their current team. Some of the signs might include: Progressing much faster than your team members, feeling like the unofficial leader or getting disconnected from the mission. Still, sometimes it can be strategic to stay a little longer, whether to finish a project or explore internal opportunities—but use that time deliberately to plan your next move.

VIDEO

QUIZ

TSA has made a number of policy changes for travelers under the Trump Administration. Which regulation did Homeland Security Secretary Kristi Noem suggest could be updated next?

A. Removing large electronics from bags

B. The limit on liquids in carry-on bags

C. Taking off your shoes

D. Having to show your boarding pass

Check your answer.

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Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.