Good morning investors! Fed cut rates as expected but the market didn’t react much yesterday.
Today we cover:
Quarter-point rate cut approved
The housing market
Nvidia in trouble?
As our muscles age, they naturally lose mass, strength, and function – a result of certain muscle fibers shrinking – contributing to fatigue and weakness beginning as early as our 30s.
Recent research highlights that the key player in this aging process is our mitochondria, tiny-but-mighty organelles that produce more than 90% of our body’s energy. Importantly, scientists have found a strong link between decreased mitochondrial health and muscle health decline with aging, emphasizing the importance of maintaining these cellular engines.
A new way to support and improve muscle health as we age, Mitopure® by Timeline is clinically shown to meaningfully boost our mitochondrial health to improve muscle strength, without any change in exercise required.
📊 Economy and News
Fed Approves Quarter-Point Rate Cut
The Federal Reserve cut its benchmark interest rate by 0.25%, setting the range at 4.00%-4.25%, with two more cuts expected by year-end due to labor market concerns.
The decision, approved 11-1, saw dissent from Governor Stephen Miran, who favored a 0.5% cut. Fed Chair Jerome Powell called it a "risk management cut" to address a cooling labor market, with unemployment at 4.3% and slowing job growth. Inflation remains above the 2% target, partly due to tariffs.
The Fed’s “dot plot” projects one cut in 2026, slower than market expectations of 2-3. Economic growth projections rose slightly, while unemployment and inflation outlooks held steady.
Powell’s Remarks
Tariffs’ impact on prices is expected to grow into 2026.
The labor market doesn’t need further softening.
No widespread support for a larger 0.5% cut.
Other banks: Bank of Canada cuts rates to 2.5%, says ready to cut again if risks rise. Similarly, Gulf central banks cut key interest rates following Fed move.
Global hits:
Singapore GDP forecast raised to 2.9% at BofA on manufacturing strength.
China’s youth jobless rate climbs to 18.9% in August.
Sterling faces pressure as U.K. productivity forecasts lowered and food prices drive British inflation to 3.8% in August, above US, euro zone.
The housing market 🏡: U.S. single-family homebuilding dropped to a near 2-1/2-year low in August, with housing starts falling 7.0% to an annual rate of 890,000 units, the lowest since April 2023, due to a surplus of unsold new homes.
Permits for future single-family construction also declined 2.2% to 856,000 units, the lowest since March 2023. The Commerce Department reported an 8.5% drop in overall housing starts to 1.307 million units, with multifamily starts down 11.0% to 403,000 units.
The housing market faces challenges from high inventory levels, particularly in the South, where starts fell 17.0%.
Homebuilder sentiment remains low, though some expect sales to improve. Builders are cutting prices and offering incentives to reduce inventory, which dropped 2.1% to 611,000 units, the lowest since January 2021.
Surprising: Deutsche Bank raises 2026 gold forecast to $4,000 as bullion hits record highs. In other news, flying cars collide at airshow rehearsal in China. Lastly, Eli Lilly pill outperforms Novo Nordisk’s oral drug in head-to-head diabetes trial.
Sponsored by Pacaso
Austin Allison sold his first company for $120M. He later served as an executive for Zillow. But both companies reached massive valuations before regular people could invest.
“I always wished everyday investors could have shared in their early success,” Allison later said. So he built Pacaso differently.
Pacaso brings co-ownership to the $1.3T vacation home market, earning $110M+ in gross profit in under 5 years. No wonder the same early investors who backed Uber, Venmo, and eBay already invested in Pacaso.
They even reserved the Nasdaq ticker PCSO. Now, after adding 10 new international destinations and securing a $100M private credit facility, Pacaso is hitting their stride.
And unlike his previous stops, you can invest in Pacaso as a private company. But you don’t have time to waste.
Disclaimer: This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com. Reserving the ticker symbol is not a guarantee that the company will go public. Listing on the Nasdaq is subject to approvals.
📈 Stocks
S&P 500 6,600.35 (-0.097%)
DJIA 46,018.32 (+0.57%)
NASDAQ 22,261.33 (-0.33%)
BRENT CRUDE 67.93 (-0.79%)
* Prices as of Sep 18th, 12:20 AM UTC
Nvidia Faces Challenges in China Amid AI Chip Ban
Nvidia CEO Jensen Huang expressed disappointment over China's reported ban on the company's RTX Pro 6000D AI chip, as ordered by the Cyberspace Administration of China. The ban affects companies like ByteDance and Alibaba. Huang noted Nvidia's significant contributions to China's market but acknowledged the broader U.S.-China geopolitical tensions influencing the decision.
Nvidia's China business has faced volatility, including U.S. export restrictions on its AI chips like the H20 due to national security concerns. A recent deal allowed Nvidia export licenses in exchange for 15% of H20 sales in China going to the U.S. government. Additionally, China’s anti-monopoly investigation into Nvidia’s Mellanox acquisition adds further pressure.
Despite challenges, Huang emphasized the importance of China’s vibrant tech market and Nvidia’s 30-year commitment to it, while supporting both Chinese and U.S. governments in navigating geopolitical policies.
Look here: StubHub slides 6% in NYSE debut after ticket seller’s long-awaited IPO. Also, sales of heavy trucks are falling, which some say is a sign the economy is weakening.
Also, Cracker Barrel reported fiscal fourth-quarter earnings after the bell, missing on earnings per share but beating revenue estimates. The restaurant chain previously faced backlash over its rebrand and subsequently suspended its plans.
Check this: China Unicom will deploy Alibaba’s AI chips through the e-commerce giant’s cloud computing unit. The news sent Alibaba up about 5%. Elsewhere, UK’s GSK UK’s GSK announces $30 billion U.S. pharma investment amid Trump state visit U.S. pharma investment amid Trump state visit.
Lastly, Puma shares leap 17% on takeover reports as European stocks trade steady.
💵 Personal Finance
The 10 Most Expensive Small Cities in the U.S.
According to a September LendingTree analysis of cities with populations between 10,000 and 50,000, the priciest small cities are often located in vacation hotspots.
Here are the top 10 priciest small cities, based on median home values:
Nantucket, Massachusetts: $1,387,000
Vineyard Haven, Massachusetts: $1,104,100
Jackson, Wyoming: $954,600
Breckenridge, Colorado: $706,800
Hood River, Oregon: $571,200
Hailey, Idaho: $544,300
Port Townsend, Washington: $495,100
Steamboat Springs, Colorado: $482,300
Ellensburg, Washington: $459,900
Los Alamos, New Mexico: $452,500
While places like Martha’s Vineyard are synonymous with wealth, not all residents are affluent.
💰 Be a Better Investor
"These heroes of finance are like beads on a string; when one slips off, all the rest follow."
Think you know stocks?
Pro puts your instincts to the test with our Bull vs Bear AI stock advisor. Plus: exclusive deep dives, smarter tools, and zero fluff.
What did you think of today's newsletter?
👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.