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Formerly ousted U.Va. president has questions about Ryan’s departure

SUMMARY:

  • Former U.Va. President recalls her own brief ouster in 2012
  • DOJ reportedly pressured Ryan to resign or risk federal funding
  • Sullivan says university boards are much more politically driven and polarized now

Teresa Sullivan first wants to make one thing clear: She doesn’t have any inside scoop on what took place behind the scenes with the unexpected resignation of President , whose last day leading the university is Friday.

“I’m 1,400 miles away,” she says, having moved to Texas following her retirement last year as a member of U.Va.’s faculty. “I don’t understand what happened. For starters, does the Justice Department have some evidence of wrongdoing? What is the evidence? Did the board play any role in this, or do they just stand by and accept the resignation? I don’t know. Did the governor play any role? I don’t know.”

Other than questions about Ryan’s resignation in June, which he acknowledged was due to the federal government’s pressure to oust him from the university he led since 2018, what Sullivan has is experience and context.

In 2012, Sullivan suddenly resigned as president of U.Va. after the university’s rector and vice rector at the time, Helen Dragas and Mark Kington, asked for Sullivan’s resignation, stating they were unsatisfied with her performance. The following day, Sullivan agreed to leave, just two years after taking office.

“I never anticipated something like that would happen, nor do I feel I had any warning of it,” Sullivan said. “And so, I would say initially [it was] pretty disorienting, and I also thought it was final. I do respect that the [university] board [of visitors] has the right to hire and fire presidents, and I don’t think we can start questioning that. Or, you know, basically our whole university governance system gets turned on its head.”

Dragas announced Sullivan’s resignation to the full board and university vice presidents and deans on June 10, 2012. That same day, then-Gov. Bob McDonnell thanked Sullivan for her service, and so did several deans. At this point, though, faculty members and students began to react with shock and questions about the board of visitors’ decision process.

Meanwhile, Sullivan started making appointments out of town to find a new job, and was only vaguely aware of what was happening back in Charlottesville. Sullivan’s supporters gathered on U.Va.’s Grounds with signs protesting her dismissal, while an alumnus started an online petition to reinstate her. Also, relations between university faculty, students and staff and the Board of Visitors started to erode significantly. Major donors also expressed serious concerns.

The governor sent a letter to the board on June 22, 2012, telling them that if they didn’t reach a conclusion within days about Sullivan that he would ask for the entire board’s resignation.

On June 26, 2012, just 16 days after Sullivan’s resignation, Dragas stood next to Sullivan on U.Va.’s Grounds — applauding as Sullivan was reinstated as president. It was the end of a dramatic period for the university, and Sullivan would remain U.Va.’s president through 2018, when Ryan was hired. Dragas spent a final year on the board, although not as rector.

“I had no idea the campus would organize,” Sullivan said, looking back. “I was astonished at what happened. The fact that it was successful was really amazing to me.”

Supporters of Ryan also turned out in person to protest what they viewed as overreach by the and the DOJ’s division, which is currently led by two U.Va. alumni.

Many also found fault with the board, which at the time of Ryan’s resignation was led by Rector Robert Hardie, who was appointed by two Democratic governors and rotated off the board at the end of June. Now, the board is entirely made up of appointees by Republican , who has echoed Trump’s disdain for diversity, equity and inclusion () initiatives at universities.

Hardie and incoming Rector Rachel W. Sheridan issued a statement June 30 announcing the appointment of U.Va. Chief Operating Officer Jennifer “J.J.” Wagner Davis as the university’s acting president in the short term, and acknowledging they “share the sentiments of so many members of the university community who have expressed their sorrow about President Ryan’s resignation and their appreciation for his remarkable service to the institution.”

Davis will serve as interim president until the board names a longer-term interim president expected to remain in office until a new permanent president is hired.

Noting that the DOJ’s civil rights office had sent seven letters to Ryan over the past two months, as well as allegations that one assistant attorney general, Gregory Brown, had specifically said Ryan needed to resign or U.Va.’s federal funding would be in jeopardy, Sullivan thinks it’s possible the federal government’s problem with Ryan could have been “purely personal.” Brown, then a private attorney based in Charlottesville, sued Ryan and the university on behalf of a Jewish first-year student in 2024, claiming the student was the victim of antisemitic attacks on campus. That lawsuit was settled by the university under terms that have not been disclosed.

Ryan’s farewell announcement indicated that he believed it was personal: “If this were not so distinctly tied to me personally, I may have pursued a different path,” he wrote.

Aside from federal involvement, Virginia Democrats have accused Youngkin of trying to exert control over the state’s public universities through his university board appointments, and the state is in court with nine state senators over the validity of a state Senate committee’s vote last month to reject eight of Youngkin’s  board of visitors picks, including naming former Virginia Attorney General Ken Cuccinelli to U.Va.’s board.

Sullivan notes that the board that hired her in 2010 was far less partisan than state university boards are now, a reflection of the overall political polarization in U.S. society.

Would greater board support even have mattered for Ryan, given the federal government’s power over funding and other processes, such as student visas? It’s hard to say.

“Harvard did back President [Alan] Garber, and they’re now in litigation. For a state university, it’s more problematic,” Sullivan said. “At least in the commonwealth of Virginia, your attorney is the attorney general, and so would Attorney General Jason Miyares go along with the university suing the federal government? It strikes me that would be a long shot.”

Meanwhile, Ryan will go on a sabbatical, with the university saying he will eventually return to U.Va as a law school faculty member, a long tradition among former presidents, including Sullivan, who taught sociology classes at Virginia following her retirement as president.

As for hiring Ryan’s successor, Sullivan anticipates that it will be a hard job for the board to accomplish, but she tries to keep in mind what really matters in the grand scheme.

“Great universities are great not because of their administration,” she said. “It’s the faculty. It’s the faculty who teach the students and treat the patients and do their research. It is important to keep a great faculty. I think the undergraduate experience at U.Va. is an excellent experience. The students are very good. They’re very motivated. They motivate each other, and the faculty are really dedicated to delivering a great product in the classroom.”

US stocks move lower and pull S&P 500 back from its record

Summary

  • S&P 500, edge lower after hitting records Thursday
  • down 257 points in early Friday trading
  • Levi Strauss jumps 7% after topping earnings estimates
  • 10-year Treasury yield rises to 4.40%
  • European markets fall, Asian markets close mixed

U.S. stocks are lower in afternoon trading Friday, pulling the market back from all-time highs, as the escalates its tariff threats against Canada.

The S&P 500 was down 0.2% a day after setting a record high. The benchmark index is on pace to post its first weekly loss in three weeks.

The Dow Jones Industrial Average fell 243 points, or 0.6%, as of 3:26 p.m. Eastern time. The Dow is also on track for a weekly loss. The Nasdaq composite was down 0.1% after drifting between small gains and losses. The tech-heavy index climbed to an all-time high on Thursday.

rose. The yield on the 10-year Treasury rose to 4.43%, from 4.34% late Thursday.

said in a letter Thursday that he will raise taxes on many imported goods from Canada to 35%, deepening the rift between the longtime North American allies. The letter to Canadian Prime Minister Mark Carney is an aggressive increase to the top 25% tariff rates that Trump first imposed in March.

The move is the latest bid by the White House to use threats of higher on goods imported into the U.S. in hopes of securing new trade agreements with countries around the globe, even historically close trading partners like Canada.

The administration had initially set Wednesday as a deadline for countries to make deals with the U.S. or face heavy increases in tariffs. But with just two trade deals announced since April, one with the United Kingdom and one with Vietnam, the window for negotiations has been now been extended to Aug. 1.

Trump also floated this week that he would impose tariffs of as much as 200% on pharmaceutical drugs and place a 50% tariff on copper imports, matching the rates charged on steel and aluminum.

The initial rollout of Trump’s tariff policies in the spring roiled financial markets. But has been relatively stable in recent weeks, with stocks steadily rising to record levels That suggests the market has mostly adjusted to the unpredictability of Trump’s rapidly shifting tariffs. Some market watchers, however, aren’t so sure.

The market’s response to Trump’s tariff escalation this week “has been surprisingly muted. Markets appear to believe that Trump will again back down,” Paul Ashworth, chief North America economist at Capital Economics, wrote Friday. “We are not so sure.”

Trade policy aside, the market is now set to shift at least some of its focus on companies due to report quarterly earnings over the next few weeks.

On Friday, Levi Strauss jumped 11.3% after the jeans maker easily beat Wall Street’s sales and profit targets and raised its full-year forecast, despite expecting higher costs from tariffs.

PriceSmart climbed 6.5% a day after the warehouse club operator delivered solid third-quarter results and said it’s looking into expanding into Chile.

Earnings season shifts into high gear next week with JPMorgan Chase, Wells Fargo and Citigroup among the big banks due to report their results on Tuesday.

Shares in financial and health care sector companies were the biggest weights on the market Friday.

Visa fell 2.5% and Gilead Sciences dropped 3.5%.

Several airline stocks were down a day after encouraging quarterly results from set off a rally in the sector. Delta slipped 0.4%, United fell 4.5% and American gave up 5.2%.

Elsewhere in the market, shares of T-Mobile were little changed after the Justice Department announced Thursday that it would not prevent the company from closing on its proposed $4.4 billion acquisition of U.S. Cellular. That deal, announced more than a year ago, had come under antitrust scrutiny from the Justice Department under President Joe Biden’s administration.

U.S. Cellular shares rose 4%.

Shares in aviation company Red Cat Holdings jumped 23.7% after Defense Secretary issued orders aimed at ramping up production and deployment of drones.

European stock indexes closed broadly lower following a mostly lower finish in Asian markets.

Meanwhile, climbed to another all-time high Friday, briefly eclipsing $118,000 before easing back to around $117,893, according to Coindesk.

Bitcoin’s price jump came amid bullish momentum across risk assets and coincides with Nvidia’s surge to a $4 trillion valuation. It also comes days before the U.S. Congress’ Crypto Week on July 14, where lawmakers will debate a series of bills that could define the regulatory framework for the industry.

Bassett CEO: 3 strategies drove Q2 return to profitability

SUMMARY: 

  • saw return to profitability in Q2 despite ongoing downward pressures
  • CEO says the company is sharpening its focus on serving the interior design trade
  • Plans underway to open stores in Orlando, Florida, and Cincinnati by early FY26
  • E-commerce written sales rose 31% in Q2

With , and political uncertainty all stubbornly weighing on the industry, -based Bassett managed to buck the trend, posting a return to profitability in its second-quarter .

In an earnings call on Thursday, Bassett CEO and Chairman Rob Spilman Jr. outlined three ways the manufacturer is working to overcome headwinds and drive growth.

He said the company is leaning into the design side of the business, streamlining its marketing strategy with a renewed focus on e-commerce, and expanding into new brick-and-mortar markets to broaden its footprint.

“We are somewhat late to the party on this whole migration of the business to the design strength that, according to the officials in High Point, over 60% of the attendees now are designers,” Spilman said. “This is a big shift in the higher end of the market, and there’s a whole section of town that is dedicated to the designers.”

He noted that Bassett’s long-standing custom capabilities position the company well to meet that demand.

“What we do every day in our stores, with our dedicated distribution, is to make things one at a time and on a custom basis quickly — and it’s exactly what designers are looking for,” he said. “We do [customer’s own material]. We do a lot of things that designers use every day.”

Spilman reported that sales in the design trade channel rose by double digits in the quarter, adding, “The progress is always slower than we want, but we’re seeing positive traction.”

“We are doing things with our systems and management and bringing on a couple of new folks to get really noticed in this area,” he said. “So stay tuned on that because we really think we could grow that channel.”

He also pointed out that tariffs have been less disruptive for the designer segment compared with .

“I don’t think the tariffs have really impacted the design business very much,” Spilman said. “Retail is so cost conscious and has such a tight set of operating metrics, but designers are really focused on two things: having great product lines and delivering great service and communication. Those are kind of the basic tenets of being successful there.”

New markets for brick-and-mortar

Bassett is also investing in expanding its physical retail footprint as part of its long-term strategy.

“We are moving ahead with architectural plans to open in two new markets, Cincinnati and Orlando, [Florida],” Spilman said. “We plan to start construction this fall in both locations and expect to have these stores open in the first quarter of fiscal 2026.”

He said the company sees opportunities to serve customers in those regions with a combination of showroom experiences and local delivery capabilities.

“Our Concord, N.C., corporate store has been closed since April for remodeling and will reopen in October,” he said. “We’re excited to get that location refreshed and back in operation before the holiday season.”

Marketing tweaks

Spilman said the company has been focused on evolving its omnichannel strategy to keep pace with changing consumer habits.

“We are looking forward to getting a large product introduction from the April show on the retail floor this fall as we felt we had a particularly strong market of placements in April,” he said. “Those new collections should give us fresh stories to tell in both digital and in-store channels.”

He pointed to significant growth in online sales as evidence the strategy is working.

“Written sales at bassettfurniture.com were up 31% in the quarter versus last year, despite the housing issues,” Spilman said. “This follows an increase of 36% in Q1, so we’re very encouraged.”

While website traffic was relatively flat, the company achieved better conversion rates through a combination of targeted campaigns and site improvements.

“We continue to tweak the technology drivers to improve traffic, improve the user experience and improve our site conversions,” he said. “We made changes to our marketing mix in the second quarter to drive brand awareness, introduce new product lines and emphasize our customer design services.”

Spilman said the company shifted away from an exclusively digital approach to one that also leverages traditional marketing.

“Last year we relied exclusively on digital marketing for the quarter,” he said. “This spring, we had success in using direct mail for the launch of the Copenhagen line and that is now part of our marketing strategy for the remainder of the year. We also tested spot TV in key markets with mixed results.”

Bassett also adapted its targeted sales tactics on a key holidays in the quarter, Spilman added.

“We brought back our private sale to key customers three weeks ahead of the public Memorial Day sales event, he said, “allowing them to get ahead of the rush and have more opportunity at inventory.”

As Bassett looks to the second half of the year, Spilman emphasized that the company would continue honing its approach as it navigates and adapts to a difficult market.

Bitcoin tops $118,000 for the first time, and keeps on going

Summary

  • price hits record high above $118,000
  • Surge fueled by spot bitcoin ETF inflows and Trump’s crypto-friendly stance
  • Senate passes , first stablecoin regulation bill
  • Act sets consumer protections and guardrails for
  • House vote expected next week as crypto’s influence in D.C. grows

Bitcoin has reached an all-time high, surpassing $118,000 as a flood of money moves into spot bitcoin , which have opened up investing to millions.

A soft and the digital currency friendliness of President ‘s administration has also helped to push the price of bitcoin to unprecedented levels recently.

Last month the Senate passed legislation that would regulate a form of cryptocurrency known as stablecoins, the first of what the industry hopes will be a wave of bills to bolster its legitimacy and reassure consumers.

The fast-moving legislation comes on the heels of a 2024 campaign cycle in which the crypto industry ranked among the top political spenders in the country, underscoring its growing influence in Washington and beyond.

Known as the GENIUS Act, the bill would establish guardrails and consumer protections for stablecoins, a type of cryptocurrency typically pegged to the U.S. dollar. The acronym stands for “Guiding and Establishing National Innovation for U.S. Stablecoins.”

Next week the House of Representatives will be considering the GENIUS Act as part of Congress’ efforts to strengthen the country’s crypto position.

Trump plans to hike tariffs on Canadian goods to 35%

Summary

  • Trump raises on Canadian goods to 35%, up from 25%
  • PM says will keep negotiating a new trade deal
  • Move deepens strain in U.S.-Canada alliance
  • Trump’s tariff letter followed months of threats
  • futures slip on tariff concerns

WASHINGTON (AP) — said in a letter that he will raise taxes on many imported goods from Canada to 35%, deepening a rift between two North American countries that have suffered a debilitating blow to their decades-old alliance.

The Thursday letter to Canadian Prime Minister Mark Carney is an aggressive increase to the top 25% tariff rates that Trump first imposed in March after months of threats. Trump’s tariffs were allegedly in an effort to get Canada to crack down on fentanyl smuggling despite the relatively modest trafficking in the drug from that country. Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America.

“I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers,” Trump wrote in the letter.

The higher rates would go into effect Aug. 1, creating a tense series of weeks ahead for the global economy as recent gains in the stock index suggest many investors think Trump will ultimately back down on the increases. But stock market futures were down early Friday in a sign that Trump’s wave of tariff letters may be starting to generate concern among investors.

In a social media post, Carney said Canada would continue to work toward a new trade framework with the U.S. and has made “vital progress to stop the scourge of fentanyl.”

“Through the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and business,” Carney said.

While multiple countries have received tariff letters this week, Canada — America’s second largest trading partner after Mexico — has become something of a foil to Trump. It has imposed retaliatory tariffs on U.S. goods and pushed back on the president’s taunts of making Canada the 51st state. Mexico has also faced 25% tariffs because of fentanyl, yet it has not faced the same public pressure from the Republican U.S. president.

Carney was elected prime minister in April on the argument that Canadians should keep their “elbows up.” He has responded by distancing Canada from its intertwined relationship with the U.S., seeking to strengthen its links with the European Union and the United Kingdom.

Hours before Trump’s letter, Carney posted on X a picture of himself with British Prime Minister Keir Starmer, saying, “In the face of global trade challenges, the world is turning to reliable economic partners like Canada.” Implied in his statement was that the U.S. has become unreliable because of Trump’s haphazard tariff regime, which has gone through aggressive threats and reversals.

When Carney went to the White House in May, the public portion of their meeting was cordial. But Trump said there was nothing the Canadian leader could tell him to remove the tariffs, saying, “Just the way it is.”

Daniel Beland, a political science professor at McGill University in Montreal, said Trump’s latest move will make it more difficult for Canada and the U.S. to reach a trade deal, Beland said.

“It doesn’t mean a new trade deal between Canada and the United States is impossible, but it shows how hard it is for the Canadian government to negotiate with a U.S. president who regularly utters threats and doesn’t appear to be a reliable and truthful interlocutor,” he said.

Trump has sent a series of tariff letters to 23 countries. Those form letters became increasingly personal with Canada as well as a Wednesday note that put a 50% tariff on Brazil for the ongoing trial of its former President Jair Bolsonaro for trying to stay in office after his 2022 election loss. Trump was similarly indicted for his efforts to overturn his 2020 election loss to Democrat Joe Biden.

officials have said that Trump was seeking to isolate its geopolitical rival China with the tariffs, but the latest tariffs have undermined that message. Brazil’s largest trading partner is China, not the U.S., and Chinese government officials have framed his import taxes as a form of bullying.

“Sovereign equality and non-interference in internal affairs are important principles of the U.N. Charter and basic norms governing international relations,” said Mao Ning, the Chinese Foreign Ministry spokesman. “Tariffs should not be used as a tool for coercion, bullying and interference in the internal affairs of other countries.”

The letters reflect the inability of Trump to finalize the dozens of trade frameworks that he claimed would be easy to negotiate. Shortly after unveiling his April 2 “Liberation Day” tariffs, a financial market selloff caused Trump to announce a 90-day negotiating period during which a 10% baseline tariff would be charged on most imported goods.

But Trump has indicated that the 10% tariff rates are largely disappearing as he resets the rates with his letters.

“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%,” Trump said in a phone interview with NBC News.

Trump has announced trade frameworks with the U.K. and Vietnam, as well as a separate deal with China to enable continued trade talks. Trump jacked up import taxes on Chinese goods to as much as 145%, but after talks he has said China faces total tariffs of 55%.

In June, Trump said he was suspending trade talks with Canada over its plans to continue its digital services tax, which would hit U.S. technology companies. A few days later, talks resumed when Carney rescinded the tax.

Under the current tariff structure, the 2020 United States Mexico Canada Agreement has protected eligible goods from Trump’s tariffs. But a review of the pact is scheduled for 2026.

George Mason President Gregory Washington deserves to stay

SUMMARY:

  • George Mason’s enrollment, rankings, and research profile have grown under Washington’s presidency
  • Critics fear political pressure could lead to his removal amid federal probe
  • Faculty warn that ousting Washington would threaten academic independence

When began its search for a new president in fall 2019, Tom Davis was serving as rector of the board of visitors. Davis was a well-known former Republican congressman who chaired the influential House Government Reform Committee and led the National Republican Congressional Committee during the 2004 election cycle. No one ever questioned his conservative credentials. He kept out of board governance.

The presidential search committee was co-chaired by James W. “Jimmy” Hazel, the vice rector, and a seasoned GOP lobbyist and adviser. Like his late father, the developer and George Mason founding father John “Til” Hazel Jr., he has been a significant figure in the conservative business community.

It was under Davis and Hazel’s that was selected in 2020 as George Mason’s eighth president. “We were determined to find someone who was both a strategic thinker with the vision to see our future and a mobilizer with the ability to inspire our community,” Davis said at the time. “Dr. Gregory Washington stood out in a highly competitive search. He showed tremendous vision for the future of our region and how [George Mason] fit in and demonstrated the ability to motivate and inspire our community.” Hazel echoed similar praise for Washington.

By most university metrics, Washington has been a highly successful leader. Mason’s enrollment has grown, even as many other universities face declines. Its undergraduates are the most academically qualified in the university’s history, with 25% of new first-year students earning a GPA of 4.0 or higher. Mason’s rankings among public universities have risen considerably. Mason is one of the few R1 research universities to be designated as a Carnegie Opportunity College and University. Fans of Mason athletics are no doubt thrilled that this past year, Mason won five Atlantic 10 championships, including titles in women’s and men’s basketball.

But, like so many university leaders nationwide, Washington has faced serious challenges, including navigating the campus response to the Hamas attack on Oct. 7, 2023, and growing claims of antisemitism. While some campuses faced protests and encampments, Mason’s administration used its full authority to ban encampments and crack down on demonstrations.

The administration changed university policy to include the International Holocaust Remembrance Alliance’s working definition of antisemitism. While many faculty (including us) did not fully support all these moves, under Washington’s leadership, the campus has not experienced the kinds of turmoil others have. And Jewish organizations in the region have recognized Washington’s administration for its response to antisemitism.

Yet, despite this record, we worry that, following Jim Ryan’s ouster at the , President Washington will be pressured to resign or possibly even threatened with dismissal. As we wrote in Inside Higher Ed, Mason’s governing board, all of which is appointed by , has become increasingly politicized, shedding any pretense of commitment to shared governance and academic independence. The days of Davis and Hazel are gone.

On July 10, the federal Department of Education’s Office of announced it was investigating George Mason for racial discrimination, singling out President Washington.

While we haven’t always agreed with President Washington — at times, we’ve been outspoken critics — there is no denying Mason’s accomplishments under his leadership. He has transformed the university into Virginia’s fastest growing and most academically competitive institution, elevating Mason’s national profile in both rankings and reputation. President Gregory Washington has exceeded the expectations set by Tom Davis and Jimmy Hazel.

Suppose the federal government or the board of visitors tries to remove Washington at this critical moment. In that case, we can only assume it’s a political hit job, revealing the true motives of anyone leading this effort as ideological and political in nature. We are writing this as a warning to those who have invested so much in making Mason a truly outstanding university. Do not allow another leader, especially one of Virginia’s most effective university presidents, to be removed. Any attempt to do so should concern everyone who values academic integrity, independence, public accountability, and the role of public institutions in supporting our democracy.

If this campaign to oust Washington succeeds, it won’t be a win for oversight — it will be a win for ideological extremism over evidence, for political loyalty over public leadership, and manufactured outrage over measurable progress.

George Mason University deserves better than that. And President Gregory Washington deserves to stay.

James Finkelstein is Professor Emeritus of Public Policy at George Mason University. Bethany Letiecq is Professor of Education and Human Development and President of the George Mason University Chapter of the American Association of University Professors. Tim Gibson is Associate Professor of Communication at George Mason and President of the Virginia Council of the American Association of University Professors.

Wall Street is higher and airlines surge on a stronger outlook from Delta

Summary

  • U.S. stocks gain as companies report Q2 earnings
  • up 0.4%, Dow up 277 points, rises 0.2%
  • rallies on upbeat 2025 outlook
  • WK Kellogg soars after $3.1B acquisition deal
  • climb; S&P and Nasdaq near record highs

U.S. stock indexes rose in afternoon trading Thursday as sized up quarterly results from several companies including Delta Air Lines, which led a rally in airline stocks after releasing a solid outlook for the rest of this year.

The S&P 500 was up 0.4%. The benchmark index was on pace to surpass the record it set last week after a better-than-expected June jobs report.

The Dow Jones Industrial Average was up 277 points, or 0.6%, as of 2:05 p.m. Eastern time, and the Nasdaq composite was up 0.2%, within striking distance of topping its own new high for the second day in a row.

Delta surged 13.2%, bringing other airlines along with it, after beating Wall Street’s revenue and profit targets. The Atlanta airline also gave a more optimistic view for the remaining summer travel season than it had just a couple months ago.

Delta and other major U.S. carriers had pulled or slashed their forecasts in the spring, citing macroeconomic uncertainty amid President Donald Trump’s tariff rollouts, which have consumers feeling uneasy about spending on travel.

Delta’s encouraging report boosted the entire airline sector. United jumped 16.4%, American climbed 13.9% and JetBlue gained 11.9%.

Most of the sectors in the S&P 500 were up, with banks and consumer-focused companies accounting for much of the gains. JPMorgan rose 1.4% and McDonald’s was 2.5% higher.

Communication services stocks were the only laggard. Netflix fell 3%.

Shares of WK Kellogg vaulted 30.7% after Italian candy maker Ferrero agreed to acquire the cereal company in a deal valued at roughly $3.1 billion. The transaction includes the , marketing and distribution of WK Kellogg Co.’s portfolio of breakfast cereals across the United States, Canada and the Caribbean.

In economic news, the Labor Department reported Thursday that applications for unemployment benefits, a proxy for , fell last week, remaining in the historically healthy range they’ve been in the past couple of years.

It’s been a choppy week for the as Wall Street monitors the latest developments in President Donald Trump’s renewed push to use threats of higher tariffs on goods imported into the U.S. in hopes of securing new trade agreements with countries around the globe.

Wednesday was initially set as a deadline by Trump for countries to make deals with the U.S. or face heavy increases in tariffs. But with just two trade deals announced since April, one with the United Kingdom and one with Vietnam, the window for negotiations has been extended to Aug. 1.

Shares in mining company Freeport-McMoRan rose 3.9% after Trump said a 50% tariff on copper imports would take effect on Aug. 1. The price of copper rose 1.9% to $5.59 per pound.

Wall Street analysts predict that companies in the S&P 500 will deliver 5% growth in second-quarter earnings, according to FactSet. That would mark the lowest rate since the fourth quarter of 2023.

Conagra Brands fell 3.3% Thursday after the maker of Slim Jim, Swiss Miss and other food products reported earnings and revenue that fell short of Wall Street’s estimates. The company also lowered its earnings outlook, saying it expects continued cost increases due to tariffs.

Helen of Troy, the company behind Hydro Flask water bottles and OXO kitchen tools, sank 23% after its latest quarterly results came in below Wall Street’s forecasts. The company said it would not be providing a fiscal year 2026 outlook, citing uncertainty over tariff policy and the economy.

Shares in AZZ jumped 7.3% after the electrical equipment maker’s latest quarterly earnings topped analysts’ forecasts.

The corporate earnings season gets into high gear next week with JPMorgan Chase, Wells Fargo and Citigroup among the big banks due to report their results on Tuesday.

were mostly higher. The yield on the 10-year Treasury was at 4.35%, up from 4.34% late Wednesday.

European stock indexes were mixed Thursday following an uneven finish in Asian markets.

Tokyo’s Nikkei 225 fell 0.4%, weighed down by selling of exporters’ shares amid the yen’s appreciation, which cuts profits from exports, and dampened sentiment because of the lack of progress in the Japan-U.S. trade talks.

White House budget director accuses Fed chair of violating building rules in renovation

Summary

  • WH budget director targets Fed Chair
  • Calls $2B Fed HQ renovation “ostentatious” and misleading to Congress
  • Part of broader Trump admin effort to pressure Powell to resign early
  • Powell has refused to lower amid tariff-driven fears
  • Powell’s term runs through May 2026

 

WASHINGTON (AP) — White House budget director Russell Vought suggested in a Thursday letter that Chair Jerome Powell is in violation of government building rules in the renovation of the Fed’s headquarters.

Vought, in a letter he shared on social media, called the initial renovation plans featuring rooftop terrace gardens, VIP dining rooms and premium marble an “ostentatious overhaul.” Vought also suggested that Powell misled Congress by saying the headquarters had never had a serious renovation, saying that a 1999-2003 update of its roof and building systems counts as a “comprehensive” renovation.

It appears part of a larger pressure campaign by the to pressure the Fed chair into departing before his term ends in May 2026. Powell has declined to reduce interest rates until the U.S. central bank has a better understanding of the impact that President ‘s import tax hikes could have on inflation.

Fed officials did not respond to an email seeking a response to the White House letter. Powell said in Senate testimony last month that some of the elements in the 2021 plan such as the dining rooms and rooftop terraces are no longer part of the project for the 90-year-old Marriner S. Eccles Building.

The Supreme Court said in May that it could block any attempts by the White House to dismiss Powell, noting as part of a separate ruling that the Fed “is a uniquely structured, quasi-private entity.”

Trump said at Tuesday’s Cabinet meeting that Powell “should resign immediately” and be replaced by someone who would lower rates, as the U.S. president believes that high inflation is no longer a risk to the U.S. economy.

As Trump sees it, a rate cut would reduce the costs of government borrowing in ways that make mortgages, auto loans and other forms of consumer debt cheaper. But a rate cut could also lead to more money flowing into the economy and push up inflation, worsening affordability as the financial markets ultimately determine the interest charged on the national debt.

In Thursday’s letter, Vought sent Powell a series of questions about whether the renovation project complies with federal standards. Vought said that Powell’s testimony about changes to the 2021 plan “appears to reveal” that the renovation is not in compliance with the National Planning Capital Act.

The Fed sees political independence as an essential value for setting , allowing it to act without the interests of elections and focus instead on its dual mandate of stabilizing prices and maximizing employment.

Trump has repeatedly berated Powell on his social media site Truth Social, nicknaming the Fed chair “Too Late.” On June 30, Trump sent Powell a handwritten note saying that his decision to hold rates steady had “cost the USA a fortune” in the form of higher servicing costs on the national debt.

The risk of prematurely lowering rates is that higher inflation could be ignited. The Fed’s preferred measure of inflation, the personal consumption expenditures price index, is at 2.3%, slightly higher than the Fed’s 2% target.

Inflation has fallen after spiking to a four-decade high in June 2022, but the uncertainty on the size and impact of Trump’s and how they flow through the U.S. economy has caused the Fed to pause after multiple rate cuts last year.

Army says TRADOC won’t fully relocate from Fort Eustis to Texas

SUMMARY:

  • and Army Futures Command to merge into new Army command.
  • Full relocation from to Austin is not planned.
  • Army Execution Order expected in August will clarify personnel impacts.
  • Civilian job cuts and relocation figures remain undetermined.

The announced Thursday that there will not be a full-scale relocation of all U.S. Army Training and Doctrine Command (TRADOC) personnel and functions from Fort Eustis in to Austin, Texas.

In May, Army Chief of Staff Gen. Randy George told the House Appropriations Defense Subcommittee that TRADOC would be merged with the Army Futures Command (AFC) in Austin to form a new command — the Army Transformation and Training Command. The planned follows a directive from Secretary of Defense to transform and streamline the military, eliminating “wasteful spending.”

However, the announcement raised questions about how many military and civilian staff would be impacted and which TRADOC operations would relocate to Austin.

In an attempt to provide clarity, the Army announced on Thursday that it’s moving forward with the planned merger of TRADOC and AFC to create a new Army command.

A media advisory released by Maj. Chris Robinson, a TRADOC spokesperson, says that an Army execution order officially directing the merger is anticipated in early August and will provide additional details regarding the transformation.

According to the announcement, the merger process is expected to begin around Oct. 1 and continue “well into” 2026.

Robinson said recent reports suggesting a full-scale relocation of TRADOC personnel or functions from Fort Eustis to Austin are inaccurate. While the new command will have its four-star headquarters in Austin, Robinson says this will not involve relocating all TRADOC personnel or operations.

He added that both TRADOC and AFC will soon be inactivated to create the new command. TRADOC in its current form will not be moving to Austin.

It is still unclear what percentage of Army and civilian personnel will relocate. TRADOC, established on July 1, 1973, trains over 750,000 soldiers and service members annually. Its headquarters have been based at Fort Eustis since 2011. Robinson previously said the command has more than 35,000 military and civilians worldwide. Of this, approximately 2,000 are based at Fort Eustis, and of those, about 800 personnel are tied to the headquarters component of TRADOC.

“When units inactivate or change mission, a move for military personnel is not automatic,” Robinson’s email stated. “Several factors — such as rank, current position, and stabilization, among other factors — determine whether a soldier will relocate. There may even be opportunities for soldiers to transfer to a different unit on Fort Eustis. Each soldier can work with the Army to explore assignment options that support their career goals and family needs. In most cases, Army personnel will stay at one assignment for two or three years.”

The Army has also not publicly revealed if any civilian could be expected from the merger.

Last month, a bipartisan delegation that wrote a letter seeking more information on the merger stated that it had heard that TRADOC’s G-2 section at Fort Eustis, comprising approximately 250 positions, may be eliminated as part of the consolidation. Delegation members were also told that the Center for Initial Military Training at Fort Eustis may be folded under a staff directorate and that the headquarters staff of the three-star general at Fort Eustis may be reduced to 20 to 25 soldiers, with ongoing general staff reductions projected to be between 20 and 80 personnel.

In his advisory, Robinson wrote, “Should any civilian positions be impacted by the TRADOC/AFC merger, is committed to working closely with supervisors and affected personnel to identify and pursue open opportunities across Fort Eustis.”

He was unable to confirm the delegation’s previously stated number of layoffs, saying, “That level of detail has not been determined yet and falls outside the scope of what has been officially released.” He also could not say how many personnel would be likely to remain in Newport News and how many would be relocated to Texas, saying, “We don’t have a precise number for any potential personnel changes right now.”

“The Army Execution Order, expected in early August, will provide the detailed guidance our planning teams need to design the new command,” Robinson said in an email. “We will have more fidelity on personnel decisions after that and will share updates as they become available.”

The Army, he added, will release comprehensive details on the merger once more information becomes available.

Trump administration investigating GMU for racial discrimination

Summary

  • is under by Trump’s Department of Education
  • DOE says professors complained that people of color are given advantage in hiring, promotions
  • President Gregory Washington specifically mentioned in complaint for “directives” that emphasize diversity

The U.S. Department of Education’s Office for is investigating George Mason University for racial discrimination, it announced Thursday. According to the DOE, several George Mason professors alleged in a complaint that the university has favored employees of underrepresented races in hiring and promotions, thus creating “a racially hostile environment.”

Mason President Gregory Washington, who became the university’s first Black president in 2020, is specifically mentioned in the professors’ complaint, according to the DOE announcement, saying that he has directed the university to “develop specific mechanisms in the promotion and tenure process” in part based on whether an employee is a person of color, and that the university would base some hires “on the basis of a candidate’s ‘diversity … even if that candidate may not have better credentials than the other candidate.'”

This announcement comes on the heels of federal scrutiny of the and its president, , who announced his resignation last week under pressure from a similar investigation by the U.S. . ‘s administration has stated its aim to purge diversity, equity and inclusion initiatives from universities, including the threat of pulling federal funding for research and student financial aid.

The complaint accuses George Mason of promoting and adopting “unlawful DEI policies” from 2020 through the present in efforts to advance antiracism.

“This kind of pernicious and widespread discrimination — packaged as ‘antiracism’ — was allowed to flourish under the Biden administration, but it will not be tolerated by this one,” said acting Assistant Secretary for Civil Rights Craig Trainor in a statement.

The complaint also criticizes a task force on antiracism and inclusive excellence, and said that the university’s DEI office was renamed the Office of Access, Compliance and Community in March, after the university’s board of visitors voted to dissolve George Mason’s DEI functions. Other Virginia public universities, including U.Va., did the same following Trump’s executive orders and comments regarding universities who accept federal funding.

George Mason was already under investigation by the DOE’s civil rights office, which accused the university administration of failing “to respond effectively to a pervasively hostile environment for Jewish students and faculty from October 2023 through the 2024-25 academic year.” A similar complaint was made against U.Va.’s Ryan, whose last day as president is Friday.

Mason released the following statement Thursday: “George Mason University () received a new Dept of Education letter of investigation this morning as it was simultaneously released to news outlets, which is unprecedented in our experience. As always, we will work in good faith to give a full and prompt response. 

“George Mason University again affirms its commitment to comply with all federal and state mandates. The university consistently reviews its policies and practices to ensure compliance with federal laws, updated executive orders, and on-going agency directives.

“George Mason does not discriminate on the basis of race, color, religion, ethnic national origin (including shared ancestry and/or ethnic characteristics), sex, disability, military status (including veteran status), sexual orientation, gender identity, gender expression, age, marital status, pregnancy status, genetic information or any other characteristic protected by law.”

George Mason’s board is made up entirely of appointees by Republican , who named multiple members with high-profile conservative positions, including Rector Charles “Cully” Stimson, a former deputy assistant secretary of defense for detainee affairs under President George W. Bush, and now a senior legal fellow and manager of the National Security Law Program at the Heritage Foundation.

Stimson is one of three rectors being sued by nine state Senate Democrats to prevent the seating of eight rejected appointees to their boards. George Mason’s appointees who were not confirmed by a Senate committee in a party-line vote were former Virginia Secretary of Commerce and Trade Caren Merrick, Florida attorney Charles J. Cooper, former U.S. deputy secretary of education William D. Hansen and former Federal Trade Commission chair Maureen Ohlhausen.

Sen. Adam Ebbin, D-Alexandria, said that there has been a “disturbing pattern of conduct” on George Mason’s board since spring 2024 during the committee hearing, including a moment in a March meeting when board member Robert Pence, a former U.S. ambassador to Finland during Trump’s first term, made a comment some viewed as offensive.

Ebbin said that Pence asked Washington “how it would feel to hear, ‘Get a rope and hang them all’ invoked as free speech. Sadly, it appears that some of the visitors do not seem to be there for academic or even university governance purposes. They seem to be there … to disrupt and, if they can, to destroy.” A video of the meeting showed the statement made by Pence.

Stimson did not respond immediately to a request for comment Thursday.

James H. Finkelstein, professor emeritus of public policy at George Mason, said that university presidents “with moderate to liberal values” face pushback even if they lead schools in blue states. “Even if you have an extraordinarily supportive governor and you think you’ll be safe there, you’re not,” because of the federal government’s power to withdraw funding and student visas.

Finkelstein, who has specialized in studying university presidents’ contracts, notes that Washington — while “charismatic, smart, well-informed” — was hired by a board dominated by Democratic gubernatorial appointees at the height of COVID and racial justice protests.

“The values that he was hired to advance — this board has a different set of values,” Finkelstein said.

Former Gov. Doug Wilder issued a statement saying that Washington “is being assailed and publicly maligned for promoting antisemitism … without a scintilla of evidence from his accusers to substantiate the claims.

“He is not the only person of color heading our colleges and universities being subjected to specious and questionable charges. Cedric Wins, [former superintendent] of VMI, was also subjected to undue criticism.”

Wins was ousted earlier this year by Virginia Military Institute’s board of visitors, which did not renew his contract. Like Washington, Wins was his institution’s first Black leader.

Virginia Business Deputy Editor Kate Andrews contributed to this story.