Article here. Summary:
- Weak job data has increased expectations for Federal Reserve rate cuts, which Wall Street anticipates will boost corporate profits and stock values
- Bond markets have strengthened as traders price in rate cuts, with * Treasury yields falling to multi-year lows
- AI industry growth continues driving market gains, with nine of the top 10 most valuable stocks involved in AI representing 40% of total market value
- Trump's tariff policies have provided some business certainty after months of uncertainty, though they're contributing to inflation
- Consumer spending remains resilient, rising 0.5% in July and supporting economic activity
- Risk factors include historically high stock valuations, mounting consumer debt, rising delinquencies, and inflation concerns pushing gold to record highs near $3,700
- Some executives worry tariffs pose greater threats than anticipated, with potential to eliminate competitors and worsen inflation more than rate cuts can help
Article: Why are stocks setting records when the economy feels down in the dumps?
byu/pnonp ininvesting
Posted by pnonp
6 Comments
Stocks are not at an all time high. They seem that way because the dollar is down. The Fed is printing money that is used to pump the markets.
Look at the stock market in euros: https://ycharts.com/indices/%5ESPXEUR
It is down this year
The biggest thing I see is not a huge pullback on spending yet, which drives the marketplace. Also interest rates dropping will cause a pump of sorts and the current administration is sort of “pro company” which is shedding regulation. I think companies are also pushing their stock price higher now with artificial means like stock buybacks.
Christmas and black friday will be big indicators on how people feel, and to some lesser extent Thanksgiving with food prices, but the data will be mostly in polling there. Unfortunately September and October is a pretty dead month for holidays so people will fish for clues on earnings reports.
Rate cuts, AI hype, currency weakness.
The stock market is usually at or near an all time high unless we are in a depression, right?
Economy “feels” fine to me. Gas is cheap, and grocery bills finally stabilized.
2nd Gilded Age