Wedbush raises Tesla price target, August inflation data boosts rate cut hopes,

Market Overview - The Fed's preferred inflation gauge, Core PCE, held steady at 2.9% in August, matching estimates but remaining above the Fed's target of 2% [1][2] - Consumer spending and income showed resilience, contributing to stock market gains, with the Dow up approximately 380 points [1][2] - The S&P 500 and NASDAQ also saw increases, with the S&P 500 up 1% and NASDAQ up 1% [1] Inflation and Consumer Sentiment - Inflation remains sticky, with concerns that the Fed may not be able to implement all planned interest rate cuts due to persistent inflation [2][3] - The University of Michigan's consumer sentiment index fell to 55.1% in September, down from 58.2% in August, indicating a decline in consumer confidence [5][6] - High-income consumers continue to drive spending, while lower-income consumers express concerns about the economy and inflation [6] Housing Market - New home sales surged over 20%, reaching the fastest pace since 2022, attributed to easing mortgage rates [3] - Existing home sales remained flat, indicating a stabilization in the housing market despite overall sluggish demand [3] - Builders are focusing on incentives to drive sales amid affordability challenges [3] Technology Sector - Concerns persist regarding the sustainability of AI investments, with major tech companies like Apple and Nvidia trading lower, while others like Alphabet and Amazon saw gains [1][2] - The competitive landscape for data storage technology is evolving, with Pure Storage emphasizing its unique offerings for AI workloads [4] - Analysts remain bullish on Microsoft, raising its price target due to confidence in its growth drivers and relationship with OpenAI [5] Tariffs and Economic Impact - New tariffs announced by President Trump are expected to impact various sectors, particularly pharmaceuticals, but the overall market response has been muted [2][3] - The potential government shutdown poses risks to economic data releases, complicating the Fed's decision-making process [2][3] Investment Strategies - Investors are advised to maintain a well-designed financial plan amid uncertainty, focusing on long-term goals rather than reacting to short-term market fluctuations [7] - Emphasis on conservative investment strategies and understanding risks while seeking opportunities in fixed income and tech sectors [7]