🔥 Weekly Market Update: Enjoy the crisp end-of-summer rally—but don’t get too comfortable

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Equities soared this week as investors ramped up expectations for imminent Fed rate cuts. Record highs in the Nasdaq and S&P 500 stole headlines, driven by mega-cap tech strength and a dovish pivot from central bankers.

🔍 What Is Happening

The S&P 500 closed 1.6% higher, the Nasdaq jumped 2.0%, and the Dow gained 1.0% for the week through September 12.

Investors now price in a 96% chance of a 25 bp Fed cut at the September meeting, with bond yields tumbling—10 yr Treasuries dipped below 4% for the first time since April.

🔑 Big movers:

• Broadcom surged on robust AI-led revenues.

• Warner Bros. Discovery spiked 29% amid takeover chatter.

🤔 Why It Matters

Easing monetary policy would turbocharge growth stocks, and tech’s leadership so far suggests any cuts could fuel further gains. But cooling labor data and creeping inflation still pose two-sided risks: too much easing risks reigniting price pressures, too little may stall the rally.

💡 Opportunity

With small-caps and value stocks still lagging, consider underappreciated sectors:

• Mid-caps (Russell 2000 up 1.8% this week)

• Value (US Value Index +5.0% in August but room to run)

• Healthcare & Energy, offering yield support if volatility returns

🔚 Bottom Line

The market’s all-clear signal on inflation has powered a surge, but positioning for scattered volatility makes sense. Keep an eye on Wednesday’s Fed decision—this week’s highs hinge on it.

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Disclaimer: This article constitutes the author’s personal views and is for entertainment and educational purposes only. It is not to be construed as financial advice in any form. Please do your own research and seek advice from a qualified financial advisor. From time to time, I have positions in all or some of the mentioned stocks when publishing this article. This is a disclosure - not a recommendation to buy or sell stocks.