After a week off the Money Wise guys are back in the studio kicking things off with a recap of last week’s numbers. The Dow Jones Industrial Average rose by 1,048 points (2.6%), the S&P 500 gained 218 points (4%), and the NASDAQ surged by 993 points (6%). Year-to-date, the Dow is up 9.8%, the S&P 500 is up 18%, and the NASDAQ is up 17.8%. The guys note that this strong rally came after a period of market correction, particularly in the NASDAQ. Despite September historically being a volatile month, this past week saw a significant rebound, with the NASDAQ posting its best week of the year.

The Money Wise guys discuss recent economic data, such as the Consumer Price Index (CPI) and Producer Price Index (PPI), both of which came in line with expectations. They also highlight positive retail numbers and a dip in unemployment. Additionally, there was debate around the Federal Reserve's expected interest rate cut next week, with some market professionals suggesting a 0.5% cut instead of the anticipated 0.25%. The Money Wise guys generally agree that a 0.25% cut would be more prudent, given that inflation is cooling and the economy is still showing signs of strength. They also point out that the S&P 500 is nearing a crucial technical level and needs to break through and close above 5,670 to maintain its upward momentum.

The Federal Reserve is expected to implement its first interest rate cut in a significant period, with speculation around whether the reduction will be 0.25% or a more aggressive 0.5%. Most analysts and market professionals are anticipating a 0.25% cut, as recent economic data, including positive retail numbers and cooling inflation, suggest the economy remains relatively stable. A 0.25% cut is seen as a cautious and measured approach, aimed at supporting continued growth without overstimulating the market. However, some market professionals have argued for a 0.5% cut, believing a larger reduction would more effectively boost economic activity. The Money Wise guys express concerns that a larger cut could signal too much concern about the economy and might trigger an adverse reaction from the market.

In the second hour today, the Money Wise guys discuss 401(k) Rollovers. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.