Harvard’s presidential exit

January 3, 2024 • 5 min read

with Dan DeFrancesco

Hi! We’re barely into 2024, but we already know the big movies coming this year. From a Bob Marley biopic to a “John Wick” spin-off, these are the most-anticipated films of 2024.

In today’s big story, we’re looking at the resignation of another Ivy League president and the knock-on effect it’ll have on education in the US.

What’s on deck

• Markets: If you’re hoping for a big year for stocks, the next few days are key.
• Tech: Why the EV market hasn’t taken off like we thought it would.
• Business: The Japan Airlines collision should be a lesson for US airports.

But first, another hiccup at Harvard.

Brian Snyder/Reuters

The big story

Ivy League issues

Claudine Gay’s tenure as Harvard president wasn’t long, but it won’t be forgotten. 

Gay announced her resignation on Tuesday following continued backlash regarding Harvard’s response to the Hamas attacks and a growing number of plagiarism accusations against her.

In a letter posted on the school’s website, Gay wrote how distressing it was “to have doubt cast on my commitments to confronting hate and to upholding scholarly rigor.” Alan Garber, Harvard’s provost and chief academic officer, will serve as interim president, the school’s board announced.

Gay is the second Ivy League president to step down in less than a month, following in the footsteps of former Penn president Elizabeth Magill.

Gay and Magill were part of a now-infamous congressional hearing on antisemitism. Alongside MIT president Sally Kornbluth, the trio of leaders avoided questions about whether calling for the genocide of Jews violated their universities’ rules on bullying and harassment.

“It can be, depending on the context,” Gay answered.

Gay’s six-month run as Harvard’s president was also plagued with multiple accusations of plagiarism in her academic work. That fueled the fire of people like billionaire hedge fund manager Bill Ackman, who has criticized Gay for months.

Kevin Dietsch/Getty Images

Gay and Magill’s departures highlight the tension between businesses and prestigious universities and the former’s influence over the latter.

While some have cheered Gay’s departure, others will likely feel uneasy about external players impacting internal university business.

However, acting as if universities operate completely independently from the rich and powerful might be misguided. From being beholden to alums who want their legacies admitted to dealing with financial firms courting schools’ endowments, colleges aren’t just focused on educating.

But a quarter of the Ivy League presidents resigning within a month of each other due to public pressure makes this feel like a pivotal moment.

And universities will remain a major talking point for politicians with the US presidential election less than a year away. Already, the GOP seems keen on probing other schools, Business Insider’s Paul Squire writes.

Stuck in the middle are the students, many of whom are just looking to get a decent job after graduation so they can start paying off their mountains of debt.

Markets

🔔 Before the opening bell: US stock futures are little changed early Wednesday as investors await data that could shed light on the prospect of interest-rate cuts this year.

Lucas Jackson/Reuters

1. The key to a strong year for the market starts with a big January. The S&P 500 has a median annual return of 17% when the “January Trifecta” occurs. While performance for the entire month matters, the first five trading days of the year are key.

2. Don’t bet against Big Tech in the market this year. The Magnificent Seven – Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla – accounted for a majority of the S&P 500’s total gains last year. And market experts don’t see that changing this year with the continued rise of AI helping those companies’ earnings.

3. The themes Goldman is most focused on this year. Some things — generative AI and obesity drugs — are holdovers from 2023. But the bank also has its eyes on a renaissance in manufacturing. Here’s what else Goldman strategists say will dominate this year’s market.

Tech

NurPhoto/Getty, Tyler Le/BI

1. America’s transition to EVs seemed like a slam dunk. But it’s hit some serious roadblocks. Experts point to several issues, like insufficient charging infrastructure and a lack of affordable EV options. But there’s a larger problem: America’s EV plan was flawed from the start.

2. Seven business leaders shared how their companies are embracing AI this year. Executives from Ancestry, Boston Consulting Group, Cushman & Wakefield, LinkedIn, SAP, ServiceNow, and Verizon Consumer Group detailed their plans and concerns for the tech.

3. Tesla has officially lost its EV crown to China. Chinese EV company BYD’s sales surpassed Tesla’s for the first time. The Warren Buffett-backed company had been nipping at Elon Musk’s heels for the latter half of 2023.

Business

STR/JIJI PRESS/AFP via Getty Images

1. The Japan Airlines collision. A video appeared to show passengers inside the flaming Japan Airlines plane. Passengers who survived the burning aircraft shared what it was like inside. Although nobody died on the plane (here’s how), it shows why we can’t be complacent about near-misses in the US.

2. Get used to seeing fewer options on shelves in 2024. During the pandemic, companies reduced new items. And they found that shoppers didn’t mind. It’s a reversal of businesses previously ramping up choices to satisfy internet-trained shoppers who expect endless options.

3. OpenAI CEO Sam Altman’s daily routine. He’s rather particular about many things. That includes his meetings, schedule, sleep, and diet. Altman is one of many tech execs obsessed with extending his lifespan and maximizing productivity.

In other news

• Five low-lift side hustles to start in 2024 that take only a few hours a week.
• X is worth 71% less now after Elon Musk took over and burned its bridges with advertisers: Fidelity.
• Investors pulled $13 billion from Blackstone’s real estate fund. It may take lower interest rates to get them back.
• How to land a six-figure job as a private equity dealmaker.
• A judge is set to unseal the names of over 170 Jeffrey Epstein associates. Many of them are his victims.
• Psychologists say Americans were stressed in 2023. Here are three ways I’m unwinding in the new year.
• The cool girls have already moved on from Stanley Cups to a different massive water bottle.
• How one hedge fund crushed the market to return 48% in 2023.

What’s happening today

• The New York Film Critics Circle’s annual gala awards dinner is today. The awards, announced in November, are seen as a solid gauge for the Oscars.
• Happy birthday, Greta Thunberg. Jisoo, Florence Pugh, Mel Gibson, J.R.R. Tolkien, and Eli Manning were also born on this day.
• It’s National Write to Congress Day. The day is meant to encourage people to use their democratic right to write to government representatives and share your concerns with them.

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