Hi There! Paying bills on time was not enough.

When I first moved to America for school, I thought handling my finances would be straightforward. Save my money, pay my bills on time, and avoid debt. Simple. I ignored every credit card offer that came in the mail, worked as many hours as I could, and picked up tutoring gigs for extra cash. If I did not have the money for something, I waited.

It was only after a conversation with a friend who had lived here longer that I realized I was missing something important. He explained that in the US your financial reputation is built on a credit score. Without one, the banks and lenders treated me like I did not exist. Paying bills on time was good, but without a credit history or variety in my credit, my score was low.

So I decided to try it. I applied for two cards, a Discover card and a Sears store card, each with a $500 limit. I used them for everyday purchases, always making sure not to spend more than I had in cash. I kept my charges under 30% of the limit, made the minimum payment by the deadline, then paid off the balance before the statement closed so I would not get hit with interest.

Adopting that one habit made a big difference. Month by month I started building credit history. Lenders could see I paid on time, and having two different types of cards added diversity. Slowly my score climbed upward.

Still, I did not take full advantage of it the way I should have. Looking back, here is what I would have done differently. Instead of letting all my extra cash sit in a savings account earning a meagre 0.01%, I could have set aside three months of living expenses as a cushion and then invested the rest. A certificate of deposit, a handful of stocks, or even starting an IRA would have given me a head start. Saving is good, but investing allows your money to grow while you sleep.

If you are unfamiliar with credit scores in the U.S., or if you have avoided using credit because of uncertainty, it is important to understand that active participation in the system can be highly beneficial. Building credit responsibly gives you access to better opportunities, often with less stress and at lower cost. It can determine whether you qualify for a loan, how much interest you pay, if you can rent an apartment, or even if you get hired for a job. Active participation in the system matters.

Next week I will share the other side of this story. How I went from building an 810 credit score to watching it collapse to 530, and how debt eventually had me in a chokehold. I will share why credit can open doors but also why it must be handled carefully.

Until then, do not be afraid to take the first step. Use the Credit Confidence and Money Plan worksheet in the Special Tools and Strategies section below.

Start small, be consistent, and make your money decisions with both today and tomorrow in mind.

Alright, let’s dig in!

Stocks marched higher again last week, extending year-to-date gains and setting new records across major U.S. benchmarks. The Nasdaq led with a full week of record closes, while the S&P 500 and Dow also ended in positive territory despite a late-week dip tied to weaker consumer sentiment.

Investor attention stayed locked on Federal Reserve September 17th meeting, where expectations for a quarter-point rate cut solidified after fresh inflation and labour data. AI stocks were another driver of momentum as Oracle stunned Wall Street with its cloud forecast and a $300 billion partnership with OpenAI.

Globally, Asian equities rallied on their own wave of tech optimism, while European markets powered higher through political headlines and central bank updates. Treasuries advanced on strong demand and falling yields, the dollar softened slightly, and commodities caught a late-week bid from oil and gold.

One stock sector under pressure was vaccines. Pfizer and Moderna both dropped after reports that U.S. officials plan to examine ties between Covid vaccines and child mortality cases.

U.S. Markets Recap (September 7 - September 13, 2025)

Equities:

All three major U.S. averages touched fresh record highs last week as rate cut bets and AI enthusiasm lifted sentiment. The Russell 2000 small-cap index came within 1% of its all-time high from 2021. Momentum slowed on Friday as investors paused ahead of the Fed decision, but the week still finished strong.

Oracle (ORCL) was the standout, soaring more than 20% after projecting rapid cloud growth and unveiling its landmark deal with OpenAI. The announcement rippled through AI-related names and reinforced the sector’s leadership.

Fixed Income:

Treasuries held strong last week. Demand for new auctions was among the best ever recorded, signaling huge investor appetite even as inflation runs sticky.

• 3-year notes: $58B sold, clearing below expected yields.

• 10-year notes: Record demand, clearing at 4.033% with dealers taking the smallest share ever.

• 30-year bonds: Weaker than the shorter maturities but still solid.

Lower yields reflect growing optimism that the Fed will cut rates on Wednesday.

Commodities:

The commodity complex ended last week higher.

• Oil (WTI): Prices jumped after a Ukrainian drone strike on Russia’s largest oil terminal disrupted operations, while new U.K. sanctions stoked supply concerns. OPEC+ output increases remain a cap on further upside.

• Gold: Extended its rally above $3,600/oz as lower-rate expectations added fuel.

• Other metals: Platinum, silver, and copper also gained, due to industrial demand and investor hedging.

Currencies:

The dollar edged lower, ending last week down 0.2% against a basket of peers.

• EUR/USD: +0.13%

• GBP/USD: +0.36%

• USD/JPY: +0.18%

U.S. Economic Recap (September 7 - September 13, 2025)

Inflation Picture

August inflation gave a mixed signal.

• CPI: Headline prices rose 0.4% month-over-month (fastest since January) and 2.9% year-over-year. Core CPI rose 0.3%, steady at 3.1% annually.

• Drivers included cars, clothes, and airfares. Those categories were influenced by tariffs and trade costs. Groceries rose 0.6%, the biggest jump since 2022.

• PPI: Producer prices surprised to the downside, falling 0.1% for the first time in four months. Retail and wholesale margins dropped sharply, hinting that some tariff costs are being absorbed for now.

Bottom line: Inflation remains sticky but not hot enough to derail a September cut.

Jobs and Productivity

• Job revisions: The Bureau of Labour Statistics (BLS) cut 911,000 jobs from the prior year’s totals, the largest adjustment since 2009. The downward revision points to a weaker labour market than previously thought.

• Productivity: Fewer workers producing the same output means productivity growth was stronger than reported. This gives the Fed more room to ease rates.

• Claims: Initial jobless claims rose, signaling softer hiring, though layoffs remain historically low.

Markets interpreted these updates as confirmation of a “slow hire, slow fire” labour market.

Global Markets Recap (September 7 - September 13, 2025)

Europe:

European stocks gained despite political and policy headlines.

• France: Prime Minister Bayrou was ousted and replaced by Sebastien Lecornu, the fourth government since mid-2024.

• ECB: Left rates unchanged, with Lagarde signaling the easing cycle may be ending.

• Defense: Polish action against Russian drones lifted defense stocks.

• Corporate: Novo Nordisk (Denmark leading healthcare company) fell after announcing 9,000 layoffs and cutting profit growth forecasts.

Asia:

Tech enthusiasm drove Asia-Pacific benchmarks to seven straight days of gains.

• Japan, Taiwan, South Korea: All notched all-time highs.

• South Korea: AI optimism and the rollback of capital gains tax changes powered the move.

• Taiwan: Boosted by Taiwan Semiconductor (TSM).

• China: A 2% surge on Thursday highlighted homegrown tech optimism.

• Hong Kong: Traded higher on broad market strength.

Crypto Recap (September 7 - September 13, 2025)

Crypto crossed the $4 trillion market cap mark again, fueled by strong institutional flows.

• Bitcoin: increased +4.9% last week, reaching $116,650.

• Large-Cap Altcoins: Outperformed last week, with Dogecoin surging 26.4%.

• ETFs: Spot Bitcoin funds saw $2.3B of inflows, the strongest in two months; Ethereum funds added $637M.

Last week’s Top 5 Gainers: PUMP, MNT, M, MYX, SAROS

Here are other key highlights from last week:

• Apple’s new iPhone 17 makes signing safer for frequent crypto users.

• MoonPay and others rival Stripe in race to issue Hyperliquid USDH stablecoin.

• Gary Vaynerchuck (Gary V.) built the NFT ecosystem to last.

• Polygon Continues to go GigaGas.

This week all eyes are on Fed Interest Rate Decision!

Key U.S. Economic Releases this week (Sept 15-19):

• Mon: NY Fed Manufacturing Index

• Tues: Retail Sales, Industrial Production

• Wed: Building Permits, Housing Starts, Fed Rate Decision (2:00 PM ET), FOMC Statement, Fed Dot-Plot, Powell Press Conference (2:30 PM ET)

• Thurs: Jobless Claims, Philly Fed Manufacturing Index

Fed Watch

Markets expect a 0.25% rate cut. Beyond the cut itself, investors will parse the dot-plot and Powell’s remarks for clues on how aggressive easing could be into year-end.

Earnings: 

Notable earnings releases are shown in the chart below.

Medium-to-High Impact Global Economic Events This Week:

Week 9/07/25 - 9/13/25 Recap

Special Tools & Strategies - Credit Confidence & Money Plan

Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.