The numbers that matter:
Dow: +1.5-1.7% (new record high, because why not)
S&P 500: +0.3% (slow and steady)
Nasdaq: -0.6% (still nursing some tech wounds)
🤔 What happened?
Remember how everything sucked earlier this week? Tech was bleeding, vibes were off, and your portfolio probably looked like a crime scene.
Then Jerome Powell walked into Jackson Hole like he owned the place and basically said, "Yeah, we're probably cutting rates in September."
Boom. The market goes from depressed to manic faster than your ex sliding back into your DMs.
🎯 The Powell Effect
Rate cut odds went from 70% to 90% overnight. When that happened:
Dow jumped 800+ points on Friday alone
S&P climbed 1.5%
Nasdaq bounced nearly 1.9% in one day
It's giving "we're back, baby" energy.
🎢 Tech's Emotional Rollercoaster
Earlier this week, tech stocks were having an existential crisis. AI hype was cooling off, Nvidia was looking shaky, and everyone was questioning if we'd been living in a simulation of unrealistic expectations.
But Friday's rate cut hopes brought tech back from the dead (mostly). Though let's be real - Nasdaq still ended the week down, so the trust issues aren't fully healed.
🏆 The Real Winners
While tech was in therapy, other sectors were absolutely thriving:
Homebuilders: Making bank because lower rates = people can actually afford houses again (maybe)
Real estate: REITs went brrrr
Small caps: Russell 2000 jumped 3-4% because apparently small companies are cool again
Cruise lines: Nothing says "I'm feeling optimistic" like booking a floating petri dish vacation
🤯 Some Wild Headlines
Intel might get a 10% government stake (because apparently we're doing industrial policy now)
SoftBank threw $2B at Intel (they love a good comeback story)
EU leaders showed up to chat with the U.S. (geopolitics is so hot right now)
✨ The Vibe Check
This week was basically a masterclass in how markets can flip from doom to boom in 48 hours. Monday through Wednesday: "The economy is probably broken." Friday: "We're all gonna be rich!"
It's giving bipolar energy, but we're here for it.
👀 What's Next?
This week's watchlist:
Inflation data (please don't ruin the party)
Nvidia earnings on Aug 27 (make or break moment for AI hype)
Treasury yields (if they keep falling, this rotation party continues)
The bottom line: Powell saved the week. Markets remembered they like easy money. And now everyone's holding their breath to see if September actually delivers those sweet, sweet rate cuts.
Will the good vibes last? Stay tuned. This is either the start of a beautiful friendship with lower rates, or we're about to get our hearts broken again.
Either way, it's gonna be spicy.