📈 Rate Cut Rally

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Good Morning & Happy Friday!!

The S&P 500 hit a record high after the Fed’s 50 basis point rate cut, while Nike jumped 8% following the CEO's exit. Plus, Apple's new iPhones launch without their highly anticipated AI feature, and global markets remain mixed as central banks weigh rate decisions.

Grab your oat flat white and let's get into it! ☕️👇️

Markets

The S&P 500 hit a record close on Thursday, following the Federal Reserve’s 50 basis point rate cut, with more cuts expected. The Dow Jones Industrial Average also reached a new high, closing above 42,000 for the first time. Major players in the rally continued to climb—Tesla surged over 7%, while Apple and Meta Platforms gained nearly 4% each.

So far on Friday, markets have been mixed, with European equities and US futures slipping, while Asian markets saw gains as investors evaluated the future path of interest rates.

👟 Nike Stock Sprints 8% After CEO Steps Down
Nike shares are down 24% this year, but after announcing CEO John Donahoe’s exit, the stock jumped 8% in after-hours trading. Company veteran Elliott Hill will take over as CEO on October 14, aiming to revive the brand amid growing competition.

🍎 Where’s Apple’s AI?
Apple is launching the iPhone 16 in nearly 60 countries, but without its highly anticipated Apple Intelligence AI software. This missing feature poses a challenge as the tech giant works to convince customers to upgrade.

🥇 A Gold IRA can diversify your portfolio and safeguard your retirement (ad)
Safeguarding your retirement with a Gold IRA can help you shield your wealth from market shifts, economic uncertainty, and inflation. And with gold’s value projected to increase in 2024, now is a good time to invest. Planning for retirement involves more than saving, so fortify your portfolio with gold today and plan for a better tomorrow.

🏦 The Fed Just Lowered Interest Rates. Here's 1 Bank Stock to Buy.
The Federal Reserve cut its benchmark rate by 50 basis points, marking the first cut in over four years. Lower rates often boost stocks by making riskier assets more attractive, and banks may also benefit—here’s a bank stock to consider.

Very Quick Links

🤔 What if you only invested at market peaks? (Ben Carlson)
🐎 Dark horse in the AI race (advisor perspectives)
🚚 FedEx quarterly profit disappoints (Reuters)
📈 Bitcoin Nears $64K as BTC Futures Attract Billions (Coindesk)
🇬🇧 GBP/USD hits 2.5 year high (tradingview)

ECONOMY

Fed cuts rates - Not Everyone Follows

The US Federal Reserve made waves this week with its first major interest rate cut in over four years. On Wednesday night, the Fed reduced borrowing costs by 0.5%, a bold move aimed at supporting the economy as global markets face mounting uncertainty. This marks the first rate cut since the Covid-19 pandemic hit in 2020.

With the Fed signaling another potential cut by year-end, all eyes are on its next decision, due on November 7, just days after the US election.

While the Fed takes aggressive action, other central banks are opting for caution. The Bank of England decided to keep rates at 5%, prioritizing inflation control over immediate cuts. Similarly, the Bank of Japan held its rates steady, wary of market instability.

South Africa, however, followed the Fed’s lead, cutting rates by 0.25% due to declining inflation, signaling a shift in monetary policy across the globe.

Strategists at JPMorgan highlighted that Fed Chair Jay Powell’s remarks on Wednesday, along with officials’ revised interest rate projections, support a "Goldilocks narrative", neither too hot nor too cold, which they see as a positive signal for the economy and earnings.

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