Three Things to Watch
- On Wednesday, the minutes from the September U.S. Federal Reserve (Fed) meeting will be released. The Fed unanimously raised rates 25 basis points in September, citing elevated inflation and a blunt statement that “The Committee will deliver price stability.” The decision was 12-0 in favor of the action, and traders will look for clues on the Fed’s thoughts on inflation and the future path of rates.
- On Friday, the University of Michigan Consumer Sentiment Index and inflation expectations will be released. Despite a relatively low unemployment rate and a near-record high on the S&P 500, sentiment remains soft—a reflection of the political divide and high gas prices. Inflation is expected to ease higher, which could eventually affect consumer spending.
- Global bonds will be in the spotlight, with the U.S. 10-year note briefly touching 5.34% last week. That came despite softer-than-expected inflation and jobs readings. To date, higher yields have not bothered equities too much, but the degree and speed of the move higher in rates has been unsettling. While not calling a top, we believe there is value in bonds at current yields.
Three Things to Know
- The S&P 500 has never been more concentrated in just three stocks than it is today, with Nvidia, Apple and Microsoft representing over 21% of the index. (Source: Creative Planning)
- There are currently 134.8 million households in the United States. Just 1.4 million of these households, or 1%, now control a record 32.5% of U.S. household wealth. (Source: The Kobeissi Letter)
- Ten years ago, California’s budget was $171 billion. Gavin Newsom’s 2026 budget proposal was $349 billion, which is more than double. The population of the state stayed the same across that entire 10-year span. (Source: Wall Street Apes)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.
5987876 – EXP: 10/31/2029