📈 Stocks / Finance

Federal Reserve Cuts Interest Rate, Boosting Equity ETFs

etf.com

The U.S. central bank cut its benchmark interest rate by half a percentage point, causing major equity ETFs to rise, including the SPDR S&P 500 ETF Trust, which increased by 0.5%. The Federal Reserve lowered the federal funds rate to a range of 4.75% to 5% amid concerns that economic slowdown was becoming a bigger issue than inflation. Fed Chair Jerome Powell stated that this change aims to help sustain the economy and job market while keeping inflation on track at 2%. He emphasized that future decisions will rely on ongoing economic data.

LTL Earnings Forecasts Reduced Amid Disappointing August Performance

Yahoo Finance

Susquehanna Financial Group has reduced earnings estimates for less-than-truckload (LTL) carriers by an average of 18% for 2025 after lower-than-expected shipping volumes in August.

Analysts adjusted third-quarter estimates down by 10% and fourth-quarter estimates by 14% for key companies like Old Dominion, Saia, and XPO. A full recovery is now anticipated for 2026 rather than 2025, as the industrial economy remains soft. Despite the challenges, some companies have reported minor price stability and expected raises in shipping rates for the rest of the year.

Dockworkers Plan Strike Amid Wage and Automation Disputes

CBS News

About 45,000 dockworkers on the U.S. East and Gulf Coasts are planning to strike on Oct. 1 to protest against job automation and demand higher wages, risking major disruptions at ports that handle half of the nation's cargo. The workers are currently earning about $39 per hour, but the union wants a 77% pay raise to keep up with inflation. If the strike lasts over a month, it could lead to shortages of consumer goods and impact the U.S. economy. The union's fight against automation is expected to continue long after the current contract negotiations.

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🪙 Crypto

MicroStrategy Secures $875 Million for Bitcoin Investments

Benzinga

MicroStrategy announced they will sell $875 million in convertible senior notes, due in 2028, to help redeem $500 million in older notes and buy more Bitcoin. The offering is expected to raise about $864.1 million, possibly more if buyers opt for additional shares. The notes have a low interest rate of 0.625% and can be converted into cash or company stock. As of now, MicroStrategy holds 244,800 Bitcoin worth approximately $14.2 billion, making it the largest corporate Bitcoin holder.

🌎 Global Economy

Japan Reports August Trade Deficit of 695 Billion Yen

AP News

Japan faced a trade deficit of 695 billion yen ($4.9 billion) in August, marking the second month in a row with negative figures. Exports slightly increased to 8.4 trillion yen ($59 billion), while imports rose to 9.1 trillion yen ($64 billion). Although imports grew, they didn't meet the expected 10% increase, reflecting sluggish consumer spending. Despite the trade deficit, the yen has strengthened against the dollar, improving Japan’s purchasing power.

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