Market Rally Ahead of Fed Decision: Time to Rebalance?

Greetings, everyone!

The stock market is heating up with the Nasdaq and S&P 500 hitting their best week of the year!

Tech stocks are back in the spotlight, and everyone’s waiting to see what the Federal Reserve does next. With inflation hitting a 3-year low but consumer debt on the rise, there’s a lot at play.

Let’s take a look at what’s driving the market!

Stocks surge in a stunning rebound, led by tech giants and semiconductor stocks, as investors anticipate a game-changing rate cut from the Federal Reserve.

August CPI data shows inflation at its lowest since 2021, but rising core prices could complicate the Federal Reserve's expected interest rate cut decision.

In July, U.S. consumer debt reached record levels, with credit card balances soaring as households grapple with rising costs and tight lending conditions.

Key Stock Highlights:

Find out how Oracle's ambitious long-term outlook is driving its stock to new heights.

GameStop’s revenue fell short of expectations, heightening investor skepticism about its future growth and ability to compete in the evolving retail and gaming market

Adobe’s unexpected Q4 guidance sends its stock reeling, but analysts remain positive for the tech giant.

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PayPal, Disney, and Nike recently dropped 50-80%.

  • Are they undervalued?

  • Can they recover?

  • Read Value Investor Daily to find out.

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As we wrap up this week’s highlights, it’s clear that the market is keeping everyone on their toes. With a key Fed meeting right around the corner, it’s a great time to reassess your financial strategy.

The big question on many people’s mind is: what will the Fed do next? A rate cut could bring more growth opportunities, but rising core prices and high consumer debt are factors to consider.

Are you positioned to take advantage of the potential changes ahead? Ensure your portfolio reflects your risk tolerance and time horizon, and don’t hesitate to make adjustments if necessary.

Thanks for tuning in this week! Invest safe and until next time!

Warm regards,

Financial Fortitude Folio Team