Crickets and BUT BUT BUT from the Bears
Well, the Fed cut rates as expected. Powell said they are moving to neutral or pause mode, as expected. Stocks generally liked what they heard and closed near the highs for the day. Semis have struggled a bit over the past few days but I am not concerned in the least just yet. I think they have a chance to really soar into year-end.
This morning, the employment report came in better than expected as well as seeing upward revisions to prior months. Wage growth was a solid 3%. This report was Goldilocks and very hard to poke holes in. In a recent turn, good news is good news for stocks in the pre-market. That’s a nice shift and a rare kudos from me for the Fed.
The bearish crowd with the naysayers and gloom and doom’ers have been completely silenced this week. I hear crickets from most of them and “BUT BUT BUT” from a few of them. I laughed earlier this week when stocks were 1% and people emailed and tweeted to poke fun at me. 1%! HA!!
S&P 500 is at new highs. NASDAQ 100 will be at new highs today. The Dow isn’t far behind. The S&P 400 and Russell 2000 will take a little longer but they’ll get there sooner than later. Don’t rule out a sharp move higher by year-end for the stock market.