Tuesday's Scoop: Cruising☀️

Hey friends - welcome back to your daily scoops.

Here’s what you need to know today to inform your work, spending, and investments:

1. Economic and political uncertainty is affecting small business expansion.

2. America’s expanding its trade presence.

3. Solar energy is growing quickly in the US.

Unemployment Rate: 4.1%
^{Relatively normal, low}

Small business owners remain cautious as the November election looms. The National Federation of Independent Business (NFIB) reported its optimism index ticked up slightly in September after a big drop in August, but uncertainty surged to a record high. Many small businesses pulled back on plans to invest in their operations, with only 19% planning capital spending—the lowest level since April 2023. While some firms intend to hire, filling open positions remains challenging, with 34% of owners unable to find suitable workers. Inflation remains a top concern, affecting their ability to manage rising costs and maintain profitability.

America’s growing its international trade relationships. US businesses sent more goods overseas in August, helping to shrink the trade deficit and support economic growth. The Commerce Department reported that the trade gap narrowed by 10.8% to $70.4 billion, its smallest level in five months. Exports surged 2.0% to a record $271.8 billion, led by strong shipments of capital goods like telecommunications equipment and civilian aircraft. Meanwhile, imports dipped slightly, reflecting fewer purchases of industrial supplies and motor vehicles. The expansion of exports relative to imports will boost the economy this quarter.

Global Energy Emissions: 37.4 billion tonnes of CO₂
^{An all-time high, up 1.1% from 2022. (IEA)}

Solar energy is on the rise in the US. The US Energy Information Administration reported that solar power generation in August was 36% greater than last August, thanks to a surge in new solar installations over the past year. The total solar capacity reached 107.4 gigawatts, up from 81.9 gigawatts in August 2023. More growth is expected, with solar on track to make up two-thirds of all new energy generated in the rest of the year. California, Texas, and Florida are leading the charge, accounting for nearly half of the country’s solar power. Solar is growing faster than any other kind of energy in the US.

The Market:⬆️+1.0%
S&P 500: 5,751.13
1Mo: +5% | 1Yr: +33% | 5Yr: +94%

The market climbed on Tuesday as policymakers calmed fears about any major shifts in their interest rate plans. The unexpected increase in hiring in September wasn't enough to derail their plans to continue reducing the cost of borrowing.