Good morning investors! Stocks were shaky yesterday as we await more news.

Today we cover:

• Looking at Chinese stocks

• Hurricane changing the market

• Stocks take a break

📊 Economy and News 

A Look at China's Changing Economy

After stocks, China's property market saw a brief sales surge during the National Day holiday after the government introduced measures to stabilize home sales and prices, including mortgage rate cuts. However, analysts warn it's too early to call it a recovery, as the real estate sector has struggled since 2021 with developer defaults and unfinished projects.

Stocks Reopen: Chinese stocks are reopening today amid cautious optimism. Lynn Song, chief economist for Greater China at ING, noted that while optimism may persist, it will likely do so "albeit at a less furious pace."

Gary Ng, senior economist at Natixis, emphasized that the potential for further market rallies is "narrowing," stating that real improvements in the economy are necessary to justify current valuations.

Shaun Rein, founder and managing director of China Market Research Group, pointed out that the focus of Tuesday's meeting should be on whether the new measures effectively target the real economy.

Tuesday’s Meeting: Senior officials from China's top economic planning agency will brief reporters today on steps to implement policies to promote economic growth.

Global hits:

• Goldman lowers recession odds to just 15%.

• Trump threatens a 200% tariff on vehicles imported from Mexico.

• No case for more jumbo rate cuts by the Fed, strategists say.

Check this: Shares of Generac Holdings, a backup power generation company, jumped over +8% on Monday as Hurricane Milton intensified into a Category 5 storm. In contrast, insurance stocks with exposure to natural disasters fell due to potential insured losses from the hurricane. Allstate, Travelers, and Chubb each saw their shares drop by more than -4%, while Progressive and AIG declined over -3%.

Takeaway: This shows how natural disasters can impact stocks and why it’s important to keep an eye on such happenings.

Reply in comment with your reason. We pick ‘turtle’ because… they’re slow!

Don’t forget to check our X account for the poll result tomorrow.

📈 Stocks

S&P 500 5,695.94 (-0.96%)
DJIA 41,954.24 (-0.94%)
NASDAQ 17,923.90 (-1.18%)
BRENT CRUDE 81.11 (+3.92%)
* Prices as of Oct 8th, 12:20 AM UTC

Week starts on a low note

Stocks struggled on Monday as rising oil prices and higher Treasury yields dampened market sentiment. The 10-year Treasury yield rose over 4 basis points to 4.02%, crossing the 4% mark for the first time since August. Meanwhile, U.S. crude oil prices surged more than 3%, closing above $77 per barrel, driven by ongoing tensions in the Middle East.

Energy stocks were the only bright spot, gaining about +0.4%, while sectors like utilities and consumer discretionary dragged the S&P 500 lower, each down around -2%.

Super Micro emerged as a standout, jumping +15% after announcing it is shipping over 100,000 AI-related graphics processing units per quarter. However, the company remains behind schedule on its annual report, which was expected in August.

Being in the same field, Nvidia also benefitted from the news jumping over +2%.

Also check: Taiwan’s Foxconn, the world’s largest contract electronics maker, beat expectations to post its highest-ever revenue for the third quarter on strong demand for artificial intelligence servers. On the other hand, South Korean tech giant Samsung Electronics on Tuesday reported that it expects worse-than-expected profit for the third quarter.

💵 Personal Finance

You’re not too young to create these financial goals

Looking for financial advice? Here are a few things you should do today if you want to safeguard your tomorrow:

• Create an emergency fund. It should contain at least three to six months' worth of expenses. Also, use your emergency funds only when there is an emergency. One way to accelerate your emergency savings is by storing them in a high-yield savings account. These types of savings accounts offer above-average interest rates (currently over 4% APY), helping you reach your savings goals quicker. It might not seem like much at first, but remember that as your balance grows, so will the interest you earn.

• Build your credit. Work on building your credit as having good credit can help you qualify for better loans, lower interest rates, certain credit cards and even apartments. Start working on your credit now even if you have no intention of buying a car or a home. A great way to build credit is to open a credit card but make sure to never delay payments.

• Get rid of debt. Whether it's student loan or credit card debt, take steps to get rid of it as soon as possible. Being in debt is not only bad for your financial health but mental health as well. For credit card debt, you may want to consider doing a balance transfer to a credit card with a 0% intro APR. Furthermore, you can try methods such as the debt avalanche method to get rid of debt.

• Create savings goal. This will help you stay motivated and allow you to remain on the right path. Your goal can be anything from buying a home to take a vacation. Just make sure the goals are attainable. Moreover, all goals should have a clear path.

• Plan for retirement. You are never too young to plan for retirement so start opening retirement accounts now and save whatever you can.

• Focus on yourself. Make sure to take care of your physical and mental wellbeing. More and more youngsters are getting diagnosed with depression and other mental conditions due to societal pressures and financial troubles. Don’t let this happen to you. Pay attention to your health and get rid of things that could harm you, i.e.: avoid smoking and drinking and consider building your skills so that you stay employed.

  Need more tips? Check this video:

💰 Be a Better Investor

Resources:

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• Side Hustle Ideas

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• Investing 101 videos

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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