Weekly Market Update

Weekly Web Post for the Grand Protector

Market Summary: Stocks Rise as Investors Look Ahead to Interest Rate Decision

As we head into the another week of September, investors are looking ahead to the Federal Reserve's interest rate decision next week. With a slew of economic data released over the past few days, markets have become increasingly convinced that the Fed will cut rates at its meeting.

Key Takeaways:
• The S&P 500 and Nasdaq Composite closed at record highs on Thursday, with the Dow Jones Industrial Average also reaching new heights.
• Labor market data has shown clear signals of weakness, with just over 20,000 jobs added last month and weekly initial jobless claims surging to a near four-year high.
• Inflation remains stubborn, but investors are betting it is tame enough for the Fed to cut next week.
• Traders are pricing in a more than 90% chance of a quarter-point cut when the Fed holds its September meeting.

Market Moves:
• Oracle's (ORCL) blowout revenue forecast lifted AI hopes, with shares rising over 36%.
• Wholesale inflation unexpectedly declined last month, bolstering the case for the Federal Reserve to cut rates next week.
• The Consumer Price Index (CPI) report showed inflation remained sticky in August, but markets are expected to shrug off the persistent price pressures.

What's Next:
• The Federal Reserve will meet next week to decide on interest rate cuts. Markets are pricing in a more than 90% chance of a quarter-point cut.
• Investors are betting that the central bank will cut rates three times before the end of the year.
• Wall Street will be watching closely for any signs of inflation or labor market weakness that could impact the Fed's decision.

Economic Data:
• The Bureau of Labor Statistics released updated jobs numbers on Tuesday, showing further labor market weakness.
• Wholesale inflation unexpectedly declined last month, with producer prices actually declining on a month-over-month basis vs. expectations for a 0.3% increase.
• Consumer prices ticked up in August, but markets are expected to shrug off the persistent price pressures.

Corporate News:
• Apple's (AAPL) annual fall event saw the tech giant showcase devices including the iPhone 17 and iPhone Air, as well as new watches and heart rate-tracking AirPods.
• Oracle's (ORCL) blowout revenue forecast lifted AI hopes, with shares rising over 36%.
• Tourmaline Bio (TRML) and Nebius (NBIS) both jumped over 50% on deal news.