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πŸ“‰ BREAKING: The Fed Raised Rates

There's a window opening in the market right now that favors regular people over the big money.

Legendary trader Tim Sykes, creator of over 50 millionaire students, says it's the biggest opportunity of his career for people with jobs, families, and lives outside the market.

He just closed a trade using it for $9,177 in profit. He didn't watch a screen all weekend.

But he says the window is closing. Fast.

β˜•οΈ GM Munchers! Last day on the cruise, and I've reached a strange kind of equilibrium: my portfolio is sinking, but the number on the scale is climbing at almost the exact same rate. The buffet giveth what the market taketh away. My wife calls it "gaining perspective." I call it gaining nine pounds.

On today’s menu:

  • 🏦 The Fed Just Raised Rates For The First Time Since 2023

  • πŸš€ SpaceX Ripped Higher Ahead Of A Make-Or-Break Launch

  • πŸ‡¨πŸ‡¦ Canada Just Got A Wild Invite: Join The EU

  • βœ… Salesforce, Zillow & Robinhood

  • ⌚️ Rolex Just Released a New Watch

Yesterday’s numbers:

S&P 500

7,551

-0.45%

Nasdaq

25,978

-0.01%

Dow Jones

51,461

-1.21%

Bitcoin

~$76,340

+0.26%

BREAKING NEWS

🏦 The Fed Just Raised Rates For The First Time Since 2023

It's official. The Federal Reserve raised interest rates by a quarter point yesterday, lifting its benchmark rate to a range of 3.75% to 4%. It's the first rate hike since July 2023, and the vote was unanimous, 12-0. Just remember how big a flip this is: at the start of 2026, the market fully expected rate cuts this year. Instead, we got the first hike in three years.

New Fed Chair Kevin Warsh didn't mince words, saying "the plain fact is that inflation is too high and has been for too long." He pinned much of the blame on spiking oil prices from the Iran war, something the Fed openly admits it can't control with rate hikes. This move directly defied Trump, who installed Warsh specifically hoping for lower rates. Instead, Warsh proved he won't be a political pawn.

  • πŸ“Š More hikes are likely coming: 16 of 18 Fed officials expect at least one more rate increase this year, with traders eyeing the October meeting.

  • 🐒 Inflation isn't beaten until 2029: The Fed's own projections don't see inflation returning to its 2% target until 2029, and no rate cuts are penciled in until 2028.

  • πŸ“‰ Stocks didn't love it: The market sold off, with the Dow posting its worst day in nearly a month as investors braced for a longer high-rate era.

The Munch Take: Don't panic-sell over one rate hike. History is genuinely reassuring here: across the last 21 tightening cycles, the S&P 500 climbed in the 12 months after the first hike 81% of the time, averaging a 6.7% gain. Our stance hasn't budged. If this fear drags quality names lower, we treat it as a shopping opportunity, not a reason to run. Rates always come down eventually. Warsh just told us that "eventually" is further out than the market hoped, and that's fine. We're patient, and we're keeping our list ready.

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STOCK OF THE DAY

πŸš€ SpaceX Ripped Higher Ahead Of A Make-Or-Break Launch

$SPCX SpaceX surged over 5% to around $151, reclaiming a level it's struggled to hold since going public back in June. The rocket behind the rally is, fittingly, a rocket. SpaceX confirmed its 14th Starship test flight is scheduled for as early as September 22, and this one's a big deal. It'll be Starship's first-ever attempt to reach orbit, and it'll deploy the first 26 next-generation Starlink V3 satellites, which are far more powerful than anything flying today.

Here's why investors care so much. SpaceX's entire long-term story hinges on Starship working. If it can reliably reach orbit and launch often, the economics of the whole business transform, since Starship can carry way more Starlink satellites per trip and eventually replace the older Falcon fleet. A success on September 22 would be a massive validation. A failure would sting.

  • πŸ›°οΈ Starlink is the real cash machine: The satellite internet business drives most of SpaceX's revenue, and V3 satellites could supercharge it, with analysts eyeing $100 billion in revenue by 2027.

  • πŸ“‰ Watch the share unlocks: More insider shares become tradable on September 24 and October 9, which could add selling pressure right after the launch.

  • ⚠️ The valuation is stretched: SpaceX trades at over 85 times sales while still posting losses, so it's priced for perfection and execution has to deliver.

The Munch Take: Here's the part space investors should really keep an eye on. Prediction markets now put a 66% chance that Tesla and SpaceX announce a merger by the end of 2027. That's worth watching closely, because in our view most investors are really betting on Elon himself more than either individual company. Bringing his two crown jewels under one roof could be genuinely bullish for both stocks, since it would let investors buy the entire Musk empire in a single ticker. For now, September 22 is the date circled on every space investor's calendar. Everything else is noise until that rocket either reaches orbit or doesn't.

MARKET OVERVIEW

🍿 Tasty Movers & Shakers

πŸ’°οΈ Special Report: My 4-Step Process for 100% Winners (from Wall Street Zen)

🏠 $Z Zillow fell 3.72% after losing a legal fight to access home listings from Illinois's largest real estate listing service. When a data company gets locked out of the data, investors notice fast.

πŸͺ™ $HOOD Robinhood dropped 5.46% after federal prosecutors charged two employees with allegedly using inside information to make crypto trades.

☁️ $CRM Salesforce slipped 2.04% after a widespread outage hit during day two of its own Dreamforce conference. Going dark at your biggest event of the year is about as bad a look as it gets.

πŸ”§ $HON Honeywell climbed 2.07% after management pointed to strong orders and solid momentum heading into year-end. A confident outlook was exactly what investors wanted to hear.

NEWS OF THE DAY

πŸ‡¨πŸ‡¦ Canada Just Got A Wild Invite: Join The EU

Here's a genuinely historic curveball. European Commission President Ursula von der Leyen just invited Canada to become the first-ever "associate member" of the European Union. She dropped the offer during her annual State of the Union address in France on Wednesday, with Canadian Prime Minister Mark Carney sitting right in the audience. The timing is no accident. As Trump's trade war pushes Canada away from the U.S., Europe is throwing open its arms.

Let's be clear on what this is and isn't. Canada can't become a full EU member, since it isn't a European country. "Associate member" is a brand-new status, and the fine print hasn't been written yet. But von der Leyen also floated a broader alliance covering technology, critical raw materials, energy, and defense. In plain terms, Canada is hunting for new economic partners while its biggest trading partner slaps it with 50% tariffs.

  • 🀝 The motive is diversification: Canada sends nearly three-quarters of its exports to the U.S., so any real path to European markets is a lifeline against Trump's tariffs.

  • ⚑ Energy and minerals are the prize: Europe wants Canada's oil, gas, and critical minerals, while Canada wants European buyers who won't threaten tariffs every month.

  • πŸ•°οΈ This is a slow burn: Trade blocs take years to build, so nothing changes overnight, but the direction of travel is a genuine shift away from U.S. dependence.

The Munch Take: For currency traders, this leans mildly bullish for the euro over the long run, since a bigger economic bloc with Canada strengthens Europe's hand, though EURUSD won't move much on an announcement this early and vague. The bigger story is what it signals: the old U.S.-Canada partnership is genuinely fracturing, and Canada is actively building a Plan B. That's not a one-day headline. That's a slow, structural shift worth watching for years.

πŸͺ Munchy Memes

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