They investigated it. Then they bought it.
Dear Friend,
In May 2019, Congress hauled a Cleveland parts maker into a public hearing.
The committee's investigation found profit margins that ran, on some parts, past 4,000%.
Lawmakers demanded audits. Cameras rolled. The founder refused to apologize.
Then something strange happened.
According to congressional disclosure records, at least six members of Congress bought the stock.
At least four of the lawmakers who demanded audits owned it. One congressman made ten separate purchases totaling $185,000 over five weeks.
The man who chaired the hearing? A shareholder.
Think about what that means. The people who saw the company's books up close, who saw exactly how those margins worked, decided the right move wasn't to break it up.
It was to own it.
Since its 2006 IPO at $21, the stock has returned 5,700% before dividends. It trades around $1,232 today.
Dylan Jovine spent months inside the filings, the disclosures, and the hearing record. His full briefing on what Congress found, and what they did next, is free today.
"The Buck Stops Here,"
Kelly Maguire
Behind the Markets
Wall Street moved higher Wednesday morning as technology stocks recovered from the previous session’s selloff and investors returned to semiconductor names ahead of Nvidia’s earnings.
The rebound eased some of the pressure created by rising bond yields, but two major tests remain: Nvidia’s results and fresh inflation data that could shift expectations for Federal Reserve policy.
What Moved
Wednesday, September 2
The Dow rose 0.14% to 53,492.65 by 9:41 a.m. ET.
The S&P 500 gained 0.38% to 7,681.91.
The Nasdaq climbed 0.75% to 26,174.64.
Nvidia rose 1.4%.
Meta gained 0.9%.
Intel climbed 3.1%.
Micron advanced 3.9%.
Western Digital gained 3.7%.
AMD rose 3.4% after Raymond James upgraded the stock.
Dick’s Sporting Goods plunged 22.6% after cutting its annual forecasts.
Nike fell 3.2%.
Why It Moved
Technology stocks led the recovery after semiconductor weakness pulled the S&P 500 and Nasdaq lower Monday.
Investors returned to several chip and data-storage names, including Nvidia, Intel, Micron, Western Digital and AMD. The move came one day before Nvidia’s quarterly results, which are expected to provide another major reading on demand across the AI market.
The stakes are high because investors have become more cautious about valuations and the scale of spending required to build AI infrastructure. Markets are increasingly scrutinizing how hyperscalers finance those projects and whether spending is translating into sustainable revenue growth.
Strong earnings have helped support the broader equity rally so far. That has kept investors willing to buy technology stocks despite concerns about high valuations and the recent rise in Treasury yields.
The recovery was not broad enough to lift every company. Dick’s Sporting Goods fell sharply after cutting its annual forecasts and citing difficult market conditions. Nike also declined.
Why It Matters Now
Several short-term signals emerged:
Technology buyers returned after Monday’s semiconductor selloff.
Nvidia earnings remain a major test for AI sentiment.
Chip valuations are still sensitive to signs of slowing growth.
Inflation data could reset expectations for the next Fed move.
Higher Treasury yields remain a risk for growth stocks.
Retail earnings are showing more pressure than technology.
Wednesday’s PCE inflation report is the next major macro signal.
An earlier consumer inflation reading came in roughly in line with expectations and reduced bets on a September Fed rate hike. Money markets still price one 25-basis-point increase by the end of 2026.
That means another soft inflation reading could strengthen the case for the Fed to remain patient. A hotter PCE number could bring rate-hike expectations back into focus and put renewed pressure on technology valuations.
Fed Chair Kevin Warsh’s Jackson Hole speech on Friday adds another layer. Investors are looking for clues about how the Fed will approach monetary policy as inflation, rising Treasury yields and reduced forward guidance reshape rate expectations.
Iran remains in the background as well. Treasury Secretary Scott Bessent said countries continuing to trade with Tehran could face exclusion from the dollar-based financial system. Markets largely absorbed the threat, in part because investors interpreted the economic pressure as an attempt to strengthen the U.S. negotiating position rather than an immediate escalation.
Market breadth was positive Wednesday morning. Advancing stocks outnumbered decliners by 1.25 to one on the New York Stock Exchange and 1.77 to one on Nasdaq.
In the immediate window ahead, Nvidia and PCE inflation will determine whether the technology rebound has room to continue. Strong AI results paired with softer inflation could reinforce the rally. Slower Nvidia growth or renewed inflation pressure could quickly put bond yields and stretched technology valuations back at the center of the market.
