The drumbeat of a September rate cut gets louder

Hello Hustlrs 👋,

Welcome to The Global Hustlr, your weekly guide to Wall Street’s biggest stories, simplified for Global Investors. 

Each issue breaks down the latest market moves into practical tips you can use to grow your wealth—no matter where you call home.

Let’s dive into this week’s market updates.

☕️ Quick Brew: This Week’s Market Pulse

It was a mixed bag for U.S. stocks this week. 

Investors watched closely as new inflation numbers hit, and everyone kept their ears open for hints of a U.S. interest rate cut. 

Hopes were high, but caution lingered. 

What does this mean for you as a Global Investor? 

Let’s break it down.

The Big Stories

1. U.S. Stocks Flat as Rate Cut Hopes Fizzle

Stocks ended the week with small moves up or down. 

For the trading week, all three major indices were mixed

• Dow Industrial Average 1.7 %

• S&P index 0.9 %

• NASDAQ index 0.8 %

The cause:

That’s because traders are worried—will the U.S. Federal Reserve cut interest rates in September, or won’t they? 

Markets are stuck in “wait and see” mode.

2. Trump-Putin Alaska Summit Goes Nowhere on Ukraine

Big political meetings can shake markets. 

This week, U.S. President Donald Trump met Russia’s Vladimir Putin in Alaska. 

The goal: make progress on peace in Ukraine. 

The result: no big breakthroughs. Investors shrugged this one off, but political risk stays on the radar.

3. Producer Prices Soar—Highest Jump in Three Years

The Producer Price Index (the cost companies pay for materials and goods) jumped 0.9% in July—the biggest monthly increase in three years. 

Producers in the US raised their prices at the fastest pace in more than three years last month as companies grappled with new costs from tariffs introduced by US President Donald Trump.

That can push inflation higher down the road.

4. UnitedHealth Jumps After Berkshire's Big Bet

Healthcare giant UnitedHealth ($UNH) soared 12.04% this week. 

The reason? 

Warren Buffett’s Berkshire Hathaway just revealed a $1.6 billion stake in the company. 

When “the Oracle of Omaha” bets big, the market pays attention.

5. Inflation Stays Hot, Core Prices Tick Up

U.S. inflation data for July came in mixed, with headline numbers better than forecast, but the core rate rising faster than expected. 

The latest numbers show consumer prices rose by 0.2% in July, making the annual inflation rate hold at 2.7%. That’s not wild, but not cool enough for the Fed to relax just yet.

Meanwhile, the core inflation rate (which strips out food and energy) rose more than experts expected.

Where to invest after a Fed rate hike

Which US sectors look most attractive if a September Fed cut occurs?

The July U.S. inflation data brought both relief and a fresh worry for the Federal Reserve.

Headline inflation stayed at 2.7%—a bit lower than markets expected—while the core rate (excluding food and energy) jumped by 0.3% in July and is now up 3.1% from last year, which is slightly higher than forecast and marks the biggest monthly core jump since January.

Despite the stronger core number, investors now see a high chance (over 90%) that the Fed will cut rates at its September meeting, thanks to softening job growth and a relatively tame inflation report. 

Wall Street expects the Fed to trim rates by 25 basis points to help boost the economy, especially with labor market signs turning weaker.

If the Federal Reserve does cut rates in September, several U.S. stock market sectors tend to do well:

Historically, after a Fed rate cut in September (or after the first cut in any cycle), the sectors that perform best are typically:

• Consumer Non-Cyclicals (Staples): This sector has shown the strongest average returns, outperforming the broad market by about 7.7 percentage points 12 months after a first Fed rate cut. These are companies that make essential goods like food, household products, and drinks—think Procter & Gamble, Walmart, Coca-Cola. Demand stays strong even if the economy slows.

• Consumer Cyclicals (Discretionary): Companies in this area—like retailers and automakers—see a boost as lower rates support spending. Average outperformance is around 7 percentage points.

• Technology: Tech stocks generally do well after the first year of rate cuts (about 5.2 percentage points above market). Lower borrowing costs and improved business sentiment help drive growth here.

• Healthcare: This defensive sector reliably posts gains, up 4.5 percentage points above the market, as healthcare demand holds steady regardless of the economy's state.

• Homebuilders & Real Estate: Lower rates reduce mortgage costs, boosting home sales and benefiting real estate stocks.

On the other hand, utilities and financials (especially banks) have tended to underperform immediately after rate cuts, and energy/commodity sectors also lag more often than outperform.

In summary: After a September Fed rate cut, history shows consumer staples, cyclicals, tech, healthcare, and real estate typically lead the pack for 6-12 months, while utilities and financials may trail.

What Does This Mean for Your Investment?

All those numbers, meetings, and headlines can be confusing. Here’s what matters for you—

• Interest Rates Still Rule the Game: Lower U.S. rates usually mean a weaker dollar. That can push U.S. stocks up and make your dollars go further when sending money abroad. But with inflation still sticky, don’t expect cuts just yet. Keep an eye on the Fed’s September meeting.

• Inflation Means Be Selective: Rising prices can punish companies that can’t pass costs to shoppers. Big, stable businesses in healthcare, tech, and consumer staples (like food and household goods) often outperform when inflation is high.

• Buffett’s Moves Are a Signal: UnitedHealth’s jump shows that even in a wild market, big investors look for quality. Buffett likes companies with strong profits and reliable demand. Watch where the “smart money” goes.

• Political Drama: Keep Cool: Global politics are unpredictable. But unless they spill into major economic trouble, the U.S. market is quick to shrug off most headlines.

Subscribe to The Global Hustlr!

Want tips to win at global investing? Sign up for The Global Hustlr today. Our newsletter is your ticket to simple, smart money moves that build wealth in global markets. No jargon. No fluff. Just real steps, real insights, and a community of go-getters like you.

Together, let’s build your wealth beyond borders.

The Global Hustlr Team

This Newsletter is for informational purposes only and should not be taken as specific investment advice. Investors should base their decisions on their individual investment goals and financial circumstances. Although the information is believed to be accurate, it is not guaranteed and may change without notice. Past performance does not predict future results.