The AI-fueled stock rally hit a pothole: Wall Street’s semiconductor index lost $500+ billion yesterday, marking its worst day since 2020 (and the Nasdaq’s worst since 2022) after news of possible impending export restrictions and geopolitical commentary from former President Donald Trump spooked investors.

Here’s what went down:

• The Biden administration is considering implementing an export curb called the foreign direct product rule to further squeeze China’s chip industry, Bloomberg reported on Tuesday. This would essentially let the US limit allied nations’ exports to China for any product that uses even a shred of American technology, something many of the chip sector’s top players do.
• Separately, Trump told Bloomberg in an interview also published Tuesday that “Taiwan should pay us for defense,” stoking fears that the US might put conditions on aid if China invaded the island. Taiwan is vital to AI expansion—66% of the world’s advanced chip manufacturing is expected to come from Taiwan this year, according to TrendForce data.

And here’s who went down:

• The biggest loser was Netherlands-based ASML, the world’s largest supplier of chipmaking equipment, which fell nearly 13%. Biden’s potential curbs could spell trouble for ASML’s business since 49% of the company’s Q2 sales took place in China, per CNBC.
• Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker that’s relied upon by giants like Apple and Nvidia, closed −2.4% in Taiwan and nearly −8% in the US after Trump’s comments.
• Nvidia fell 6.6%, and softer shocks rippled out to Big Tech stocks, including Apple, Microsoft, Amazon, and Alphabet.

But…while others sank, Intel leveled off after rallying, and GlobalFoundries led market gains yesterday. Both manufacturers may be perceived as better protected from geopolitical uncertainty, since they’ve made recent moves to build more US plants.

Zoom out: Biden has been curbing Chinese chip access. But he can’t get too aggressive without angering US chipmakers, which have lost $130 billion in market cap due to US export controls, the Federal Reserve reported in April.—ML

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J.D. Vance made his debut as Trump’s VP nominee. In a speech at the Republican National Convention, the Ohio senator and heir-apparent to the MAGA movement channeled his upbringing in the Midwest to argue he’d fight for working-class Americans who had been “cast aside and forgotten” by Democrats. For Vance, a former venture capitalist in Silicon Valley, the speech was an opportunity to introduce himself to Americans, since nearly two-thirds of voters had never heard of him or had no opinion, per a CNN poll. Tonight, former President Trump will formally accept the GOP’s nomination and close out the convention with a speech.

Dems delay nomination plan amid calls for Biden to step aside. The Democratic National Committee said it would stick with its planned virtual roll call to officially make President Joe Biden the nominee in advance of the party’s convention. But, rather than beginning the virtual vote as soon as next week as originally planned, it won’t start before Aug. 1. The new timeline gives donors and lawmakers concerned about Biden’s ability to beat Republican nominee Donald Trump more time to make their case. Yesterday, Rep. Adam Schiff urged Biden to drop out of the race, making the California Democrat, who’s running for Senate, one of the most high-profile party members to do so.

Guests found dead at luxury Thai hotel were likely poisoned by cyanide. Thai authorities say the poison was found in the blood of the six people, including two US citizens, who were found dead inside a suite at Bangkok’s five-star Grand Hyatt Erawan. Police say cyanide was detectable in a teapot and coffee cups they drank from amidst a dispute involving bad investments, and law enforcement is now trying to determine whether the deaths were murder or suicide.

It’s always great to see a sports team owned by its fans, but this isn’t like the Green Bay Packers. Hollywood power couple and OG Angel City FC fans, TV journalist Willow Bay and her husband, Disney CEO Bob Iger, finalized a deal to buy the LA-based women’s soccer team.

The sale values the club at $250 million, making it the most valuable women’s sports team in the world. Some details of the agreement:

• Bay and Iger will invest $50 million and take controlling ownership from Reddit co-founder Alexis Ohanian.
• Bay will lead the board and represent ACFC on the National Women’s Soccer League’s Board of Governors.

All existing owners—a group that reads like the invite list to Oprah’s birthday party—will continue to be involved, including Natalie Portman (a co-founder), Billie Jean King, and former USWNT players such as Abby Wambach and Mia Hamm.

Show me the money: Bay predicts that ACFC can ride growing interest and investment in women’s sports to a $1 billion valuation in the “modestly near term.” The team generated $33 million in revenue last year, the most of any women’s sports team in the world (according to the team), and was No. 1 in NWSL attendance and sponsorship revenue.

But it’s not without its devils…the team ranks 11th out of 14 teams this season and has been dogged by reports of infighting.—CC

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A prework swim rarely, if ever, includes the threat of bumping into a floater. But Paris Mayor Anne Hidalgo swam in the Seine River yesterday morning to prove how clean it was, despite reports of high E. Coli levels in June and threats from angry Parisians to increase those levels (by pooping in the river). The mayor’s dip was meant to show the Olympic marathon swimmers and Olympic and Paralympic triathletes set to compete in the Seine at the end of the month that it’s safe after a decade of murky waters.

Swimming and wading in the Seine have been illegal since 1923 as trash and sewage flowed free into its waters, but after a $1.5 billion cleanup effort, the river is (seemingly) ready to dive into.

• Much of the money went to building a giant basin to hold rainwater overflow that could contaminate the water.
• Officials had to get thousands of homes and buildings along the river to link to the official sewage system instead of just dumping into the Seine.

Looking ahead…so far, the Seine is a go, but there’s no backup venue for the triathlons—even though too much rain could still muck up the water and affect flow.—MM

The Bear—a series known for exploring trauma, grief, and family tension, as well as for getting fans who have never set foot in a restaurant kitchen to shout “yes, chef”—just set a new record for Emmy nominations for a comedy series with 23 nods. The show trumped 30 Rock’s 22-nomination record, which the much-zanier program set in 2009. But it’s only as a comedy that The Bear earned the television equivalent of a Michelin star: The all-time winner for most nominations remains Game of Thrones, which got 32 in 2016.

You can see the full list of nominees for the awards, dominated by Shogun outside of comedy (with 25 nominations), here. The Emmy ceremony will be in September.