Fed Cuts, iPhone Flies, and What’s Next for Your Wallet

Just when you thought the market was about to take a nap, it chugged a Red Bull and decided to break some records. The past week felt like a Hollywood blockbuster: the Federal Reserve finally cut interest rates, Apple unleashed its latest iPhone, and stocks soared to new heights. It was a week that had everything, except maybe a cameo from Nicolas Cage. As we head into the last full week of September, the big question is whether this rally has legs or if it’s just a flash in the pan. We’ll be watching the Fed speakers and key earnings reports to see if the party can keep going.

Last Week’s Review

The S&P 500 closed at a record high of 6,664, up 0.50% for the day, capping off a strong week for the bulls. The Dow Jones Industrial Average also joined the party, closing at 46,315, a gain of 0.37%. Not to be outdone, the tech-heavy Nasdaq Composite surged 0.72% to 22,631. Bitcoin, the digital gold, was trading around $115,733, showing some stability after a volatile few weeks. Meanwhile, the 10-year United States government bond yield settled at 4.133%, reflecting the market's reaction to the Fed's rate cut. It seems like the market is singing “Don’t Stop Me Now” by Queen, but we all know how that song ends.

Last Week’s Headlines & Market Impacts

Federal Reserve Cuts Interest Rates for the First Time in 2025: In a widely anticipated move, the Federal Reserve announced a 25-basis-point cut to the federal funds rate, bringing the new target range to 4.00% - 4.25%. The decision came as the Fed acknowledged a moderation in economic growth and a slowing labor market, while inflation remains elevated. The move was not unanimous, with one FOMC member, Stephen Miran, dissenting in favor of a more aggressive 50-basis-point cut. The market reacted positively to the news, with the S&P 500 and Dow Jones Industrial Average rallying to record highs.

Apple Launches iPhone 17, Stock Jumps: Apple's latest lineup of smartphones, including the iPhone 17, iPhone 17 Pro, and the new iPhone Air, hit stores on Friday, drawing massive crowds and sending Apple's stock up 3%. The successful launch fueled a broader rally in the tech sector, with the Nasdaq Composite leading the gains among the major indices. The new top-of-the-line iPhone 17 Pro Max with 2TB of storage retails for a whopping $2,000, a new record for the company.

The Major Indices Hit Record Highs: The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closed at record highs for the second consecutive day on Friday, capping a strong week for equities. The rally was driven by a combination of factors, including the Fed's rate cut, positive economic data, and strong performance in the tech sector. The S&P 500 and Nasdaq have now posted their third straight week of gains.

Bitcoin Holds Steady Above $115,000: After a period of volatility, Bitcoin has found a level of stability, trading consistently above the $115,000 mark. The world's largest cryptocurrency by market capitalization has been trading in a tight range, with analysts suggesting a potential breakout or breakdown is imminent. The 24-hour trading volume has been relatively low, indicating a period of consolidation.

Gold Prices Rise on Fed Rate Cut: Gold prices rose to a two-week high following the Federal Reserve's decision to cut interest rates. The precious metal, which is seen as a safe-haven asset, benefited from the lower interest rate environment and a weaker U.S. dollar. Gold closed the week at $3,705.an ounce.

10-Year Treasury Yield Reacts to Fed Decision: The yield on the 10-year U.S. Treasury note rose to 4.14% after the Federal Reserve's interest rate cut. The move reflects the market's complex reaction to the Fed's decision, with some investors concerned about the potential for higher inflation. The yield curve remains a key focus for investors, as it can be a predictor of future economic growth.

Crude Oil Prices Fluctuate Amid Geopolitical Tensions: Crude oil prices have been volatile in recent weeks, driven by a combination of factors, including geopolitical tensions in the Middle East and concerns about a potential global economic slowdown. While prices have pulled back from their recent highs, they remain elevated, which could have implications for inflation and consumer spending.

Housing Market Shows Signs of Cooling: Recent data indicate that the U.S. housing market is beginning to cool off after a period of rapid price appreciation. Mortgage rates have been on the rise, and home sales have started to decline in some parts of the country. This could be a welcome development for first-time homebuyers, but it could also have a negative impact on the broader economy.

Gold & Hard-Assets Watch

Gold bugs had a good week, with the yellow metal rallying to a two-week high on the back of the Fed’s rate cut. Gold closed the week at $3,705 an ounce, as investors sought refuge in the traditional safe-haven asset. The lower interest rate environment makes gold more attractive to investors, as it reduces the opportunity cost of holding the non-yielding asset. Historically, gold has performed well in periods of low interest rates and high inflation. The near-term outlook for gold will depend on the Fed’s next move and the direction of the U.S. dollar.

Real-Estate Pulse

The housing market is showing signs of a much-needed cooldown after a period of frenzied activity. Mortgage rates have been creeping up, and home sales have started to moderate in some of the hotter markets. This is a welcome development for prospective homebuyers who have been priced out of the market, but it could also signal a slowdown in the broader economy. Listed real estate funds have been trading sideways, reflecting the uncertainty in the market. The outlook for the housing market will depend on the direction of mortgage rates and the overall health of the economy.

Key Events Next Week

Key Companies’ Earnings Next Week

Social Sentiment

The mood on social media is a mix of euphoria and anxiety. On one hand, you have the bulls who are celebrating the record highs and the Fed’s rate cut. On the other hand, you have the bears who are warning of a potential correction and pointing to the risks of inflation. The conversation is dominated by a few key themes: the Fed, inflation, and the upcoming earnings season. There is considerable speculation about the Fed’s next move and whether the market can maintain its upward trajectory.

Wine & Dine

This week’s market action pairs well with a bold and spicy Zinfandel. The wine’s complex flavors and long finish are a perfect match for the market’s recent volatility. For a food pairing, we recommend a grilled steak with a side of roasted vegetables. The rich flavors of the steak will stand up to the boldness of the wine, and the roasted vegetables will provide a nice contrast.

Wrapping Up

It was a week to remember, with the Fed finally delivering a rate cut and the market responding with a resounding cheer. The bulls are back in the driver’s seat, but the road ahead is still full of twists and turns. The key question is whether the economy can continue to grow at a healthy pace without igniting inflation. The next few weeks will be crucial, as we get more data on the health of the economy and a fresh batch of earnings reports. So, buckle up and enjoy the ride, because the market is never boring.