Market Overview - US stocks are experiencing a positive reaction following the Federal Reserve's first interest rate cut of the year, with major indexes reaching all-time highs. The S&P 500 is up 0.72%, the Dow is up 0.67%, and the Nasdaq has increased by 1.49% this week [1][2]. Federal Reserve Actions - The Federal Reserve's recent 25-basis point cut was the first since December of the previous year, with only one dissenting vote for a larger cut. Fed Chair Jerome Powell described this as a "risk management cut" in response to labor market softness, indicating potential for two more cuts this year [2][3]. Historical Context - Historically, the S&P 500 tends to rally after rate cuts following a long pause, with an average gain of about 15% over 12 months based on data since 1976. The current easing cycle began after the last rate hike in July 2023 [4]. Small-Cap Performance - Small-cap stocks are showing strong performance, with the Russell 2000 index recently hitting a new all-time high after a period of stagnation since November 2021. The forward P/E ratio of small-caps is at its lowest relative to large-caps since 1999, indicating potential for further growth [5][6]. Stocks to Watch - Credo Technology Group (CRDO) has seen a significant increase in its stock price, surging over 150% in 2025, and recently reported fiscal first-quarter earnings of 52 cents per share, exceeding estimates by 48.6% [8][9]. - IonQ (IONQ), a quantum computing company, has also experienced stock growth after acquiring Oxford Ionics, with expected revenue growth of 115% to $92.7 million this year, despite operating at a net loss [12][13]. Market Sentiment - The current market trend remains strong, with bullish sentiment not yet reaching cautionary levels, suggesting potential for further upside. Many individual stocks are outperforming, indicating a healthy market environment [15].

Market Outlook - Strategists are adjusting their year-end S&P targets, with one raising it to between 6,600 and 6,800, while also anticipating increased volatility [1] - The market has responded positively to the Fed's decision to lower interest rates, coinciding with a stable economy [2] Economic Conditions - The fiscal landscape is improving, with significant legislation passed, which could lead to a better economic environment in 2026 if monetary policy continues on its current path [3] - Corporate balance sheets are reported to be in a strong position, with high yield spreads at fresh lows [4] Banking Sector - Historically, when the Fed cuts interest rates, banks typically face challenges such as lower credit quality or increased defaults; however, this is not the case currently, as banks are at all-time highs [5] Market Performance - Equal-weighted tech stocks have reached new all-time highs, indicating positive market sentiment for the remainder of the year and into the next [6] - Small-cap stocks are not viewed as the preferred investment vehicle, despite their near-term outperformance due to the current Fed cutting cycle [7] Small-Cap Stocks - The Russell 2000 index, with a market cap of $3 trillion, is significantly smaller compared to the overall $67 trillion US stock market, and the tech sector's $28 trillion market cap [8] - The idea of rotating from tech to small caps is considered nonsensical, as there has been a degradation in quality within the small-cap universe due to private capital acquisition of strong companies [9] - There is a notable presence of non-earners in the small-cap sector, leading to a recommendation to underweight small caps [10]

Analysts are highlighting ETH USD priming to retest $4,700 – and amid the upside pressure – is dark money rotating into Ethereum? A wallet tied to a $300M Coinbase scam bought $18.9M worth of Ether as ETH ripped past $4,700 Yesterday. According to Lookonchain, a crypto address linked to the “Coinbase hacker” campaign bought 3,976 ETH for $18.9 million on Sept. 13. The purchases, made at an average price of $4,756, came as Ether pushed past the $4,700 mark. Analysts tracking the wallet say the funds wer ...

Welcome back to Market on Close. It's time for options Corner. So, we'll welcome in our friend Kevin Green joining us with the levels that he's watching as we head into the close today.You know, Kevin, what are you keeping a close eye on. We've got uh S&P still up, but everybody else down. Yeah, we did see a little bit of a round trip today, Marley, when it comes to the market.Actually earlier this morning we talked about the 655 as a potential area of resistance and we pretty much hit that on the nose and ...