Weekly Stock Market Update & SPY Technical Analysis The long-awaited interest rate cut happened last week and it propelled markets to another new record high, this time pushing the small-cap Russell 2000 index to its first all time high in years. Now all major indexes are sitting at record highs, pushing valuations of the stock market to levels beyond the dot-com bubble. Despite the astronomical valuations, investors seem to be marching forward and remain optimistic thanks to artificial intelligence spending and ongoing support from the administration. This week’s focus shifts to inflation data, GDP, and more comments from Fed officials. Inflation data is especially important because this will be the very first report after the interest rate cut, and although...
Weekly Stock Market Update & SPY Technical Analysis The entire market rally since the April correction has been building toward this week, when the Federal Reserve is finally expected to cut interest rates, a move that would unlock cheaper borrowing costs and stimulate both consumer and business spending. The lead-up has felt almost surreal, with markets brushing aside persistent inflation and labor market softness. Yet equities have pushed to record highs on the anticipation of rate cuts, confident that looser monetary policy will not only open capital markets but also fuel an even greater wave of investment into AI. Interest rates and earnings are ultimately what control market cycles. When The Fed raises rates, borrowing becomes more expensive for businesses...
Weekly Stock Market Update & SPY Technical Analysis The market hit another record high last week as investors shrugged off weak U.S. labor data and focused on the path to rate cuts. The economy added just 22,000 jobs in August, with earlier months revised lower, highlighting the drag from high rates, tariffs, and rising costs. While tighter policy curbs inflation, it also slows growth and hiring. With inflation around the 2% target and unemployment edging higher, the Fed has more reason to pivot, and markets are betting easier policy will arrive soon, even as the economic backdrop weakens. Markets climbing to new highs in the face of economic weakness is a perfect reminder that the stock market isn’t the economy....
Weekly Stock Market Update & SPY Technical Analysis Major indexes ended flat last week as markets reacted to Nvidia’s earnings and the latest inflation data. It seems like the market has been riding a record high, but hasn’t been able to see a breakout rally or a strong sell-off for weeks, but that’ll likely change this week as investors take action into the new month. The S&P 500’s climb to record highs has been driven largely by Nvidia and other stocks at the center of the AI boom. Nvidia alone now represents about 8% of the index, making its earnings a key catalyst for market sentiment. While the company once again beat expectations, much of the good news appeared to...
Weekly Stock Market Update & SPY Technical Analysis Fed Chair Jerome Powell had a mic drop moment last week after his speech sparked an unbelievable rally across the market last week. Powell suggested that The Federal Reserve is ready to shift their policy, reinforcing odds of an interest rate cut in September. The last interest rate cut was in December 2024, making this a long awaiting moment by both consumers and investors. Why does this matter? An interest rate cut reduces the cost of borrowing capital, making loans and credit more affordable for both individuals and businesses. This encourages households to spend more, and businesses are incentivized to invest in expansion, hire additional workers, and take on new projects. As...
