📈 Happy interest rate cut day

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Good Morning & Happy Rate Cut Day!

From the Fed's looming rate cut decision to Bitcoin's battle to stay above $60k, and why Summit Therapeutics is shaking up the cancer drug scene, we’ve got it all covered.

Grab your Iced latte and let's get into it! ☕️👇️

Markets

The S&P 500 closed just 0.03% higher on Tuesday at 5,634.58, after hitting a record 5,670.81 earlier in the day. The Dow Jones slipped slightly by 15.9 points, or 0.04%, to 41,606.18, also reaching a record high during the session. The Nasdaq Composite advanced 0.2%, closing at 17,628.06.

Despite the fresh highs, investors are cautious as they await the Federal Reserve’s key interest rate decision later today, which could ease borrowing costs after a period of high inflation.

September has historically been a tough month for markets, with the S&P averaging a 1.3% loss over the past decade.

👊 Bitcoin Fights to Hold $60k
Bitcoin managed to stay above $60,000 early Wednesday after dipping below that level a few times overnight. With the FOMC meeting looming and Jerome Powell expected to announce rate cuts, traders are on edge. BTC jumped nearly 4% yesterday, and is currently sitting at 3 week highs.

🇨🇳 Big Names quietly upping their China bets
It’s late 2024, and everyone’s still stressing about China’s economic troubles, from property issues to sluggish growth. But not all the big names are on the doom train. David Tepper and Michael Burry are holding strong on their China bets, banking on the country’s potential for some big innovation despite the gloom.

🛍️ Is Shopify a buy?
Shopify has always posted impressive growth, but its high valuation keeps the stock on a rollercoaster. After its Deliverr acquisition flopped, some doubted its next move, but Shopify surprised with solid earnings in August. The big question now, is it a buy at current prices?

🤖 3 Strong Trades Recommended by A.I. Today *
There are thousands of good trade opportunities happening right now as you read this. Attend today’s free live class because you’ll learn the top three trades our artificial intelligence is recommending.

💊 Here's Why Everyone's Talking About Summit Therapeutics
September's been buzzing for biotech investors, as it looks like Merck's Keytruda could face serious competition. Summit Therapeutics (SMMT) just dropped clinical trial results showing its lead candidate, ivonescimab, reduced the risk of disease progression in lung cancer patients by 49% compared to Keytruda alone. Which could disrupt an incredibly lucrative market for Merck.

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ECONOMY

Let’s Talk Interest Rates

The Federal Reserve is set for its first interest rate cut since the pandemic, and even though it’s widely expected, investors are bracing for the fallout. Traders are betting on a half-point cut, with futures showing a two-thirds chance of the bigger move, compared to a more cautious 25-basis-point reduction favored by many on Wall Street.

Here’s what to know:

• The Fed starts its two-day meeting today, with more decisions in November and December.

• Traders expect two half-point cuts and a quarter-point cut by the end of 2024.

• The current policy rate has been in the 5.25%-5.50% range for over a year.

A key issue is how these cuts impact currency markets. Higher rates attract foreign investors, driving up a country’s currency, as seen with the U.S. dollar in 2022. Meanwhile, weaker currencies like the Japanese yen are feeling the pressure as their central banks lag behind.

On the flip side, a rate cut could ease borrowing costs, boost U.S. equities, and make Treasuries less appealing. Some analysts, though, are cautious—big cuts often signal underlying economic concerns, as seen in the lead-up to the 2007 financial crisis.

How about the housing market? Well, it’s stuck between high prices and low supply, but cutting interest rates could make things worse. If the Fed slashes rates, it might flood the market with homes, easing prices but adding a whole new layer of chaos.

Our Recommendations:

💻️ MEXC - Where we find and trade Crypto with low fees.
📈 TradingView - Software we use to chart stocks.
🔐 Trezor - Our favorite hardware wallet to keep our Crypto secure.
🦑 Kraken - Where we buy crypto with cash / withdraw profit to our bank.

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