Another record day for the S&P500, fueled by strong earnings and the Federal Reserve’s (Fed) looming policy easing. Last quarter, S&P500 companies grew earnings by ~13%, yet exclude Big Tech, growth was only 3 4%. A third of the index is dominated by Big Tech, with Nvidia alone accounting for ~8%, creating an ecosystem that keeps tech-heavy indices like the S&P500 and Nasdaq in demand even amid economic weakness.
Google jumped 4%, hitting a $3T valuation, driven by AI momentum and news it doesn’t need to divest Chrome. Nvidia held ground despite China’s antitrust headlines. Now investors are watching the Fed: as much as four 25-bp rate cuts are expected at four next meetings, supporting risk appetite, while small and mid-cap companies, cyclicals and Asian equities are also enjoying the ride. Will the Fed follow through? Will political pressure show in the dot plot? And how will markets react? Watch...
