MarketSurge powers the charts in this video.
As expected, the Fed cut the overnight rate again by 25bps. The biggest winners were gold and silver miners. It is the market’s way of saying that maybe the higher-than-average inflation problem is not likely to be resolved any time soon, as government deficits continue to balloon. We saw a big rotation – out of big tech and into small caps. Russell 2k broke out from a multi-month base to new multi-year highs. Big tech lagged, dragged by worse-than-expected earnings results from Oracle and Broadcom.
Volatility and choppiness have increased substantially lately. Most AI-related stocks are under severe pressure and are easily giving back gains – CEG, APH, VRT, NVDA, CRDO, GEV, etc. JPM had a big drop during the week after warning of higher expected expenses in 2026 due to a fragile consumer environment. It quickly recovered the decline by the end of the week as the financial sector made new all-time highs.
SpaceX IPO chatter sparked interest in space stocks. They were among the best performers last week and continue to look constructive – ECHO, ASTS, RKLB, PL.
Cannabis stocks also had a strong week on rumors that Trump might reclassify marijuana. VFF has the most constructive chart in the space.
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