TLDR

MARKET RECAP → Stocks closed lower on Friday as a weaker job market weighed on investor optimism.

🎈 POWERBALL WINDFALL TAX → That $1.8B jackpot drops to less than half after federal and state taxes, proving the lottery is the ultimate partnership between winners and the IRS.

🆘 JOBS MARKET SOFTENS → Payrolls grew by just 22,000 in August, unemployment rose to 4.3%, and markets immediately priced in aggressive Fed cuts despite widening cracks in the labor market.

Was this email forwarded to you? Sign up for free here.

MARKETS

Market Snapshot

Today’s S&P 500 Heatmap

Notable Earnings Next Week

PERSONAL FINANCE

Powerball Windfall Tax

🏆 The jackpot headline is a mirage. That $1.8 billion Powerball prize isn’t a lump sum—opt for cash and you’re looking at roughly $826 million before Uncle Sam shows up.

💸 The IRS takes first dibs. Federal withholding grabs 24% immediately, and the balance is taxed up to 37%. Translation: you’re handing back hundreds of millions before you even dream of the beach house.

📉 State taxes pile on. Depending on where you live, the hit could be another 10% or more. The end result: life-changing money, sure—but the billion-dollar fantasy shrinks fast.

ECONOMICS

Jobs Market Softens

📉 August hiring was dismal. Nonfarm payrolls rose by just 22,000, far short of forecasts, while the unemployment rate climbed to 4.3%. It’s the weakest job creation streak since the pandemic era, signaling that the labor market is finally cracking.

📊 Sectors showed uneven results. Healthcare added 31,000 jobs, but manufacturing, mining, and government all shed workers. Black unemployment hit 7.5%, highlighting widening disparities even as headline numbers wobble.

💸 Markets cheered the weakness. Treasuries rallied as traders priced in a possible 50-basis-point Fed cut this month. Stocks surged, betting bad news for jobs is good news for borrowing costs.

SHARE OUR NEWSLETTER FOR SWAG!

BULL VS. BEAR

KEEP READING

Google leads monster week for tech, pushing megacaps to combined $21 trillion in market cap (CNBC)

AppLovin and Robinhood added to S&P 500 (CNBC)

Record numbers of retirement savers are now 401(k) or IRA millionaires (CNBC)

NOTABLE POSTS

WHAT WE’RE WATCHING

A MESSAGE FROM OUR PARTNER

OUR FAVORITE TOOLS & RESOURCES

• Generated Assets — Turn any idea into an investable index

• Polymarket — The world’s largest prediction market

• Unusual Whales — Companion for uncovering unusual market activity

• OpenBB — AI-powered research and analytics workspace

• Earnings Hub — Earnings calendar

• Quiver Quantitative — Quiver allows retail investors to tap into the power of big data with insights into things like congressional trades as they are disclosed

• Perplexity — Perplexity AI is an AI-chatbot-powered research and conversational search engine

• The Market Ear — Live news, analysis and commentary on what moves markets and trading

• Coinmarketcap.com — Crypto market data

• Finviz — Financial visualizations

• Trading Economics — Economic calendar

• CME FedWatch Tool — Market-implied probabilities of future levels of interest rates 

• Dataroma — Track stock picks and portfolios of legendary value investors such as Warren Buffett

• ChatGPT — Large language model-based chatbot powered by generative AI

• Vimcal — Lightning-fast calendar and AI scheduling assistant

• AltIndex — Alternative datasets to uncover unique insights

• GFR Smart Stock Selector — Filters stocks to help investor choices

WE WANT YOUR FEEDBACK

^{_{Investment advisory services provided by ML Wealth LLC. Investment Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclosures relating to the MoneyLion Investment Account, see Investment FAQs, Form ADV Brochure, and moneylion.com/investing. Funded managed investing accounts are subject to a monthly account fee of $1 (for accounts valued up to $5,000), $3 (for accounts valued over $5,000, and up to $25,000), or $5 (for accounts valued over $25,000).}}

<sup><sub>This advertising email was sent to you because you have a MoneyLion account. If you would like to unsubscribe, please do so using this link. We respect your right to privacy. Please do not reply to this email with sensitive information, such as an account number, Social Security number, date of birth, bank account information, PIN, password, or Online ID. The security and confidentiality of your personal information is important to us. If you have any questions or want to read more, please visit our Help Center.

MoneyLion and Pathward do not provide, nor do they guarantee, any third-party product, service, information, or recommendation. The third parties providing these products or services are solely responsible for them, as well as all other content on their websites. MoneyLion is not liable for any third party’s failure with regard to those advertised products, services, and benefits. These advertised products and services may not be FDIC insured or bank-guaranteed, and may be subject to a different privacy policy than MoneyLion’s. You should check individual offers, products, and services to become familiar with any applicable restrictions or conditions that may apply. MoneyLion may receive compensation from third parties for referring you to the third party, their products or to their website.

The influencer, creator and other content provided in the MoneyLion App (“Content”) is for informational and entertainment purposes only and should not be construed as legal, tax, investment, financial, or other advice. All Content is intended to be of a general nature, does not address the circumstances of any particular individual or entity, and may not constitute a comprehensive or complete statement of the matters discussed. MoneyLion is not a fiduciary by virtue of any person’s use of or reliance on the Content. You should consult an appropriate professional if you require any legal, tax, investment, financial or other advice. Terms and Conditions for our subscriber referral can be found here.</sub></sup>