Wall Street Waits for Daddy to Say the Magic Words

2 Minute Read

Wall Street is acting like a kid on Christmas Eve, except instead of toys under the tree, traders want Jerome Powell to slip a rate cut under the markets. After July’s producer price index leapt 0.9%—the biggest monthly jump since 2022—everyone knows inflation’s not behaving, but hope springs eternal that the Fed Chair will still play Santa at Jackson Hole.

In true American tradition, the Dow, S&P, and Nasdaq have been flirting with record highs, because who needs reality when you’ve got vibes and liquidity? Meanwhile, economists in a Reuters poll still swear Powell will deliver at least one rate cut in September and maybe another before year’s end, proving optimism can survive just about anything, even a stubborn CPI.

Over in the political cheap seats, Treasury Secretary Scott Bessent made headlines this week by telling the Fed how to do its job—loudly demanding a half-point cut like a back-seat driver on the highway. Markets loved it, of course, surging on the idea that elected officials might just bully monetary policy into compliance, independence be damned.

As if that weren’t enough noise, earnings from Walmart, Home Depot, Tesla, Micron, and AppLovin are adding more seasoning to the stew of “what does this all mean?” Traders are analyzing quarterly reports like fortune cookies, convinced Powell’s Jackson Hole speech will make sense of it all.

Disclaimer: This content is for informational and entertainment purposes only and does not constitute financial or investment advice. The information provided may be outdated or contain inaccuracies. Always conduct your own due diligence and consult a licensed financial advisor before making investment decisions. Investing involves risk, including the potential loss of principal.

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