Good morning investors! The S&P 500 fell on Wednesday as artificial intelligence giants Nvidia and Oracle came under pressure for a second day.
Today we cover:
New home sales surge
Defense stocks jump
Expensive college towns
📊 Economy and News
U.S. New Home Sales Surge to 3.5-Year High, but Experts Doubt Sustained Growth
U.S. new home sales soared 20.5% in August to an annualized rate of 800,000 units, the highest since January 2022.
Despite the spike, economists caution that volatile data and revisions may overstate the housing market’s strength. Subdued homebuilder sentiment and a softening labor market, with nonfarm payrolls averaging just 29,000 jobs monthly through August, could limit gains despite falling mortgage rates.
The 30-year mortgage rate dropped to 6.26%, an 11-month low, but builders are cutting prices and reducing new projects to clear inventory, which fell to 490,000 units.
The median new home price rose 1.9% to $413,500. Experts predict a potential sales drop and further price cuts ahead.
Global hits:
Mexico’s headline inflation sped up in the first half of September, broadly in line with market expectations, heading closer to the upper limit of the central bank’s target.
Thailand’s outlook revised to negative by Fitch on fiscal risks.
UK five-year debt sale sees lowest demand in almost two years with inflation set to fall.
German home prices rise as depressed property sector seeks momentum.
White House gets moving: The White House is seeking an equity stake in Vancouver-based Lithium Americas, the majority owner of Nevada’s Thacker Pass mine, which is set to become one of North America’s largest lithium sources and just doubled after the news. GM holds a minority stake in the project.
More news: Intel surged more than 6% after Bloomberg reported that the chipmaker is seeking an investment from Apple. In other news, inflation could be a third lower without tariffs, financial decision makers say.
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📈 Stocks
S&P 500 6,637.97 (-0.28%)
DJIA 46,121.28 (-0.37%)
NASDAQ 22,497.86 (-0.33%)
BRENT CRUDE 69.15 (+2.24%)
* Prices as of Sep 25th, 12:20 AM UTC
Defense Stocks Surge as Trump Signals Support for Ukraine's Full Victory
Defense stocks rallied globally after U.S. President Donald Trump made a surprising shift in rhetoric, stating Ukraine could reclaim all territory currently held by Russia. In a Truth Social post, Trump expressed confidence in Ukraine’s military position, backed by the EU and NATO, and described Russia as a “paper tiger.”
His comments marked a reversal from past suggestions that Ukraine might need to cede land for peace. Ukrainian President Zelenskyy welcomed the statement, calling it a sign of “strong cooperation,” while Russia noted Trump’s willingness to help but rejected his “paper tiger” remark.
European and Asian defense companies, including Germany’s Renk and Hensoldt, Italy’s Leonardo, and Sweden’s Saab, saw stock gains between 3% and 6%. U.S. firms like Lockheed Martin and Northrop Grumman also rose modestly.
Hensoldt’s CFO said recent developments suggest the U.S. is increasingly recognizing the realities of the war, calling the shift “encouraging for Europe.” Meanwhile, NATO tensions rose after Trump urged allies to respond more forcefully to Russian airspace violations.
New stuff: Xiaomi launched the 15T series — including the 15T and 15T Pro — at an event in Munich, as part of its global expansion efforts. The company, Europe’s third-largest smartphone maker, also introduced its Mijia home appliances to compete with Samsung.
Check this: Honda ending production of Acura EV assembled by GM in U.S. Also, Instagram now has 3 billion monthly active users. Lastly, Microsoft has added Anthropic AI model to Copilot assistant, diversifying from OpenAI.
💵 Personal Finance
These Are the 10 Most Expensive College Towns in the U.S. — With Home Prices Nearing $2 Million
As college tuition climbs, housing prices in college towns across the U.S. are also soaring — making it harder for students, faculty, and staff to live near campus.
Redfin ranked the ten most expensive college towns, i.e.: cities where at least 10% of the population are students at a four-year accredited university, and which are at least 30 miles from a major metro area (1 million+ people).
Santa Barbara, CA
University: UC Santa Barbara
Median home price: $1,964,170
Boca Raton, FL
University: Florida Atlantic University
Median home price: $822,701
Flagstaff, AZ
University: Northern Arizona University
Median home price: $695,902
Corvallis, OR
University: Oregon State University
Median home price: $568,507
Orem, UT
University: Utah Valley University
Median home price: $517,224
Eugene, OR
University: University of Oregon
Median home price: $501,571
Provo, UT
University: Brigham Young University
Median home price: $474,745
Ann Arbor, MI
University: University of Michigan
Median home price: $464,495
Manchester, NH
Universities: University of New Hampshire – Manchester, Southern New Hampshire University
Median home price: $456,096
Pullman, WA
University: Washington State University
Median home price: $452,137
While many students rent rather than buy, rising home prices reflect broader affordability challenges in these towns — including high rental costs.
💰 Be a Better Investor
“Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.”
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.