Market Update: Indexes Soar On Massive "Hold My Beer" Comeback...

After last week's wild panic as all three indexes absolutely crushed investors, U.S stocks are staging a comeback this beautiful Monday in a true “hold my beer” fashion. The S&P 500? Up 1.4%, pretending last week’s 4.2% nosedive never happened. The Dow? Leaping more than 600 points while the Nasdaq seems to have caught another wind of AI resurgence as it’s climbing +1.3% on the day. 

(Source: CNBC) 

The reason? You already know it. Wall Street and every investor and their dog are hoping that the Fed’s September 18th meeting will result in a modest quarter-percentage-point rate cut and keep the markets from giving us all August 5th recession flashbacks. 

(Source: Giphy) 

According to Quincy Krosby, LPL Financial’s resident crystal ball reader, “There’s a view that we’ll see another rate cut or two from the Fed to smooth out the slowdown, but no hard landing in the economy.” Translation: The Fed’s playing the role of the world’s most cautious Uber driver, trying to avoid every pothole on the road while still getting us to our destination— aka growth. 

(Source: Giphy) 

In addition, Cyclical stocks - the stocks that basically party when the economy sucks - are leading the charge. Industrials, financials, and consumer discretionaryshares are all doing their best impression of a phoenix rising from the ashes of last week’s selloff. Even Boeing, which seems to lurch from one PR disaster to the next, is up 3% after striking a tentative labor deal. Meaning, if Boeing is up… well, then something must be going right, amirite? 

(Source: Barrons) 

On the other hand, Apple was casually climbing 1% ahead of its iPhone 16 launch and whatever AI magic it’s about to unveil (now down -1.36% on the day). While everyone's favorite bandwagon, Nvidia, is poising +2.63% gains today following last week's DOJ subpoena slap. 

(Source: IBD) 

However, while Big Tech seems to have regained some of it’s footing with a great start to the week. Expect the rest of this week to be very volatile especially with Wednesday’s Consumer Price Index (CPI) and Thursday’s Producer Price Index (PPI) reports being the hottest tickets in town - you know, before Grandpa Powell takes the stage next week. 

(Source: Giphy) 

In fact, consider these reports the last two hurdles before the Fed makes its final decision. Because while economists are predicting that CPI will clock in at 2.6% for August, the lowest inflation rate since 2021 - say, these numbers come in hotter than expected, well buckle up buttercup, because that will play a major argument against rate slices. 

Which is why, even though Powells and his sevensome members are patting their backs for slowing inflation (for now), some analysts are biting their nails, worried that the economy might spontaneously decide to hit the gas pedal again. If that happens, expect the Fed to do an awkward about-face and start raising rates again.

(Source: Giphy) 

But for now, all expectations are leading to a rate cut, and a switch on the money printer. That is, assuming the next labor market reports don’t do something weird, like say miscalculating, and cause a clusterf**k of chaos. 

So in the meantime, let’s all just relish in the fact that the markets are regaining traction this Monday. And let’s just hope this sets the stage for the rest of the week. 

(Source: Giphy) 

But, but, but…

With that said, while investors are anxiously awaiting the next CPI and PPI reports, along with our boy Powells final decision…

We are absolutely killing it over on the Stocks.News premium side. How so? Well, since May 23rd our premium members have seen a total of FOURTEEN triple digit winners (with three additional big moves of 50% or more). 

(Source: Giphy) 

In fact, our last alert last week spawned a massive 162% peak move in less than 24 hours… which is just nuts! 

But here’s the thing, I’m expecting our next alert (coming this week) is set to be even bigger. Why? Well just read above. With the CPI, PPI, and looming Fed meeting coming up… volatility is popping more than Demi Lovato pops pills. 

So if that suits your fancy, and you want to make sure to get in on the action - click here for the details. Could our next alert be another +100% or +300% move in the making? There’s only one way to find out.

In the meantime, stay safe and stay frosty! Until next time… 

Stocks.News holds positions in Apple as mentioned in the aticle.