Stocks buck September effect, plus how August's inflation data could impact rate cuts

Market Trends & Dynamics - Major indices initially showed upward momentum but faced downward pressure from NASDAQ, with the Dow up approximately 04% [3] - S&P 500 is up over 2% this month, defying typical weaker September trends [4][10] - New tariffs on imported goods, including 100% on some drugs, 50% on kitchen cabinets, 30% on upholstered furniture, and 25% on big trucks, are set to take effect [11] - The market is closely watching whether long-run earnings per share can meet embedded expectations, differentiating current momentum from past bubbles [18] Company Performance & Analysis - Costco stock trended lower, down nearly 4% at the open, despite prior optimism, and JP Morgan cut its price target to $150 from $1,160 [5][6] - Costco's year-to-date performance has struggled, down more than 1%, contrasting with Walmart's over 10% increase [7] - Bettercom shares surged nearly 75% in a week, driven by retail investor interest, with the company projecting profitability by Q3 2026 [33][34] - Bettercom aims to achieve 10% market share in a revitalized housing market, leveraging AI to offer lower prices and faster closing times [40][41] Sector Analysis & Opportunities - Healthcare sector (XLV) has underperformed, up only 2% over the last two years compared to technology and communication services, which are up over 66% [25][26] - Small-cap energy sector shows potential for growth, with Invesco S&P Small Cap 600 Energy Sector ETF (PSCE) displaying improving price and power ratings [29] Economic Factors & Fed Policy - PCE inflation rose slightly to 27% year-over-year in August, compared to 26% in July, potentially keeping the door open for another rate cut in October [10] - Cooler-than-expected PCE numbers have increased the likelihood of October and December rate cuts [31] - Potential Fed rate cuts could significantly increase the number of consumers eligible for refinancing, potentially boosting Bettercom's revenue [42][43]