The stock market just had the kind of week that makes you want to kiss Jerome Powell. All three major indexes decided to throw a party and invite everyone.
The Numbers (Because Numbers Don't Lie) 📊
Nasdaq: +2.2% 🚀 (basically did a victory lap)
S&P 500: +1.1% ⬆️ (third week in a row of gains because it's an overachiever)
Dow: +1% 📈 (just happy to be included)
Oh, and they ALL hit record highs. In September. You know, the month when markets usually act like they ate some bad sushi.
Why Everyone's So Happy 💸
The Fed Finally Did Something. Powell and the gang cut rates by 0.25% (first time since December). The fed funds rate is now chilling at 4.00-4.25%. But here's the kicker – they basically said, "yeah, we might cut more this year."
Translation: The Fed looked at the job market, saw it getting a little wobbly, and decided they didn't want to be the reason the economy face-plants.
Jobs Are Getting Weird. Hiring is slowing down like a dial-up internet connection. But instead of panicking, investors were like "cool, now the Fed has to be nice to us."
Inflation is Still Being Annoying (But Less So). Prices are still above that magical 2% target the Fed keeps talking about, but at least they're heading in the right direction. Treasury yields went up a bit, though, because bond traders are skeptical little creatures.
Tech Flexed Hard
Nvidia dropped $5 billion on Intel stock (because when you have "screw you" money, you use it)
Apple got hyped about the iPhone 17
Semiconductors went absolutely bonkers
TikTok Didn't Get Banned. The US and China worked something out to keep TikTok alive, which made big tech platforms collectively exhale.
What's Everyone Thinking? 💭
Investors are feeling like they just dodged a bullet, but they're still looking over their shoulder. The Fed cut was nice, but inflation is still lurking around like that one friend who never pays for dinner. And consumers (especially the broke ones) are still being careful with their wallets.
This Week's Drama (What to Watch) 🍿
Tuesday: Consumer confidence numbers drop. Will regular people feel as good as Wall Street does? 🤷♂️
Thursday: Durable goods orders. Basically, are businesses still buying expensive stuff?
Friday: PCE inflation data. This is the Fed's favorite way to measure if prices are being jerks.
Fed Officials Talking: Multiple Fed people are going to say things, and traders will analyze every syllable like they're decoding the Da Vinci Code.
Earnings: Nike, Costco, and FedEx report. Want to know how consumers are doing? Ask the companies that sell them shoes, bulk toilet paper, and ship their packages.
The Real Talk 💯
Wall Street loves it when the Fed plays nice, still has a major crush on Big Tech, and apparently thinks records are meant to be broken. But inflation is still out there being difficult, consumers are being picky about spending, and September has a reputation for making everyone nervous.
So yeah, investors are feeling good, but they're not getting too crazy about it. Kind of like being optimistic but keeping your helmet on.
The big question: Is this Fed cut the beginning of something beautiful, or just a one-night stand?