Key Points

• Fed Cuts Rates: The Federal Reserve lowered its benchmark rate by 25 bps to 4.00–4.25% and signaled two more cuts this year as job growth slows and inflation remains elevated.
• Novo’s Wegovy Pill: Novo Nordisk’s oral obesity drug showed 16.6% weight loss in late-stage trials, matching its injection and intensifying competition with Eli Lilly.
• Meta Smart Glasses: Mark Zuckerberg unveiled $799 Meta Ray-Ban Display glasses, integrating a neural wristband and digital display, expanding Meta’s consumer AI hardware push.
• Spirit Airlines Cuts: Spirit will slash November capacity by 25% and warned of more job cuts as it restructures under its second bankruptcy in a year.
• Truck Sales Signal Weakness: U.S. heavy truck sales fell 15% year-over-year in August, a potential recession signal amid broader manufacturing and freight sector weakness.

Fed Cuts Rates, Signals Further Easing Ahead

The Federal Reserve approved a quarter-point rate cut, lowering the benchmark to 4.00%–4.25%, and signaled two additional reductions are likely before year-end amid rising concerns over labor market weakness.

The 11–1 vote showed less dissent than expected, with only newly appointed Governor Stephen Miran pushing for a deeper cut.

Chair Jerome Powell described the move as “risk management,” stressing downside risks to employment even as inflation remains elevated.

Markets were volatile, with equities and Treasuries mixed, while the Fed’s updated dot plot confirmed a dovish tilt, projecting a slower path of tightening toward a long-run neutral rate near 3%.

Novo Nordisk’s Oral Wegovy Shows Strong Trial Results

Novo Nordisk reported late-stage trial results showing its once-daily “Wegovy pill” achieved an average 16.6% weight reduction over 64 weeks, matching the efficacy and tolerability of its injectable version.

The development positions Novo to potentially launch the first approved oral GLP-1 obesity drug, expanding accessibility for patients reluctant to use injections.

Rival Eli Lilly is also advancing its pill, Orforglipron, which showed 12.4% weight loss in trials and may gain fast-track FDA approval. Novo’s drug is under FDA review, with a decision expected in Q4, underscoring intensifying competition in the fast-growing obesity and diabetes treatment market.

Meta Launches $799 Ray-Ban Display Smart Glasses

Meta CEO Mark Zuckerberg unveiled the $799 Ray-Ban Display glasses, the company’s first consumer-ready smart glasses with an integrated digital display controlled through a neural wristband.

The launch, part of Meta’s push into wearable AI and augmented reality, follows years of collaboration with EssilorLuxottica. Alongside the flagship model, Meta introduced $499 Oakley Meta Vanguard sports glasses and a $379 Ray-Ban Meta Gen 2, offering improved battery life and camera quality.

The rollout underscores Meta’s strategy to expand its hardware ecosystem as competition intensifies in the race to merge AI, augmented reality, and consumer electronics.

Spirit Airlines to Cut Flights, Warns of More Job Reductions

Spirit Airlines will reduce capacity by 25% in November as part of a cost-cutting push following its second bankruptcy filing in less than a year.

CEO Dave Davis told employees the airline will scale back operations to focus on stronger markets while warning that further job cuts or furloughs are likely as it negotiates with vendors and evaluates its fleet.

The discount carrier, already struggling with higher costs and weak demand, faces mounting pressure after a failed JetBlue merger, with losses of nearly $257 million reported since emerging from bankruptcy in March.

Heavy Truck Sales Slump Raises Recession Concerns

U.S. heavy truck sales dropped more than 15% in August from a year earlier, hitting their lowest levels in four years and falling 21% compared with August 2023, according to the Bureau of Economic Analysis.

The downturn, seen as a leading indicator of industrial activity, has historically preceded recessions, with sharp declines evident during the dot-com bust and global financial crisis.

While some analysts argue the weakness reflects structural shifts toward services and digital sectors, the steep decline signals broader strain in manufacturing and freight demand, adding to recession concerns as policymakers weigh economic risks.

Conclusion

The Federal Reserve’s latest rate cut underscores rising concern over labor market weakness, while Novo Nordisk and Meta highlight the pace of innovation in health and technology.

At the same time, the restructuring at Spirit Airlines and the decline in U.S. heavy truck sales serve as reminders of fragility in transport and manufacturing.

Global markets remain at a crossroads as monetary policy, corporate innovation, and sector-specific signals shape investor sentiment. These developments illustrate both opportunity and caution—investors must weigh growth potential in transformative industries against signals of stress in traditional economic drivers.

Investment Insights

• Fed Policy Path: The Fed’s move toward multiple rate cuts strengthens the case for bonds and rate-sensitive equities, but persistent inflation risks warrant selective positioning.
• Healthcare Innovation: Novo Nordisk’s oral Wegovy pill highlights the expanding obesity drug market, with competition likely to intensify — an area for long-term growth investors.
• Tech Disruption: Meta’s $799 smart glasses mark another step in wearable AI integration, reinforcing opportunities in semiconductors, AR/VR, and consumer tech ecosystems.
• Transportation Stress: Spirit’s restructuring and collapsing U.S. heavy truck sales signal weakness in travel and industrial sectors, suggesting defensive positioning remains prudent.

Economic Calendar