Good Morning,
I hope everyone had a nice weekend! School busses are back on the road this morning and I see highs in the 60’s this week. Brace yourself!
Markets rallied on Friday after Fed Chair Powell’s Jackson Hole speech where he noted the, “baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” In other words, they are prepared to lower rates next month which was what the market wanted to hear. We have seen a bit of rotation out of tech of late and into more value oriented areas of the market which I think will continue. Speaking of tech, Nvidia reports their Q2 earnings on Wednesday which will likely drive near-term momentum as investors question the billions spent by companies on AI. I think their numbers will be sufficient with the big question going forward on whether they will be able to sell to China. Friday we get the Fed’s preferred measure of inflation (PCE) which investors will watch closely as it relates to the future of interest rates. All in all, I continue to like this market and think the breadth will continue into smaller cap and value oriented companies. Please continue to reach out with questions.
Please note – The normal Market Strategy Radar Screen report will return next week.
I wish everyone a safe and happy Labor Day weekend!
(The markets and our office will be closed Monday, September 1st.)