2025-09-10
Wall Street's three main indexes scored record high closes on Tuesday as a downward payrolls revision supported expectations the Fed will soon cut interest rates to shore up economic growth.
Financial markets have priced in a 25-bp cut at the central bank's policy meeting next week, and futures trading suggests a nearly 10% chance of a 50 bps, according to CME's FedWatch tool.
US companies are planning to buy back shares at a historic pace, a sign of Corporate America's confidence in the economy, with Nvidia being the latest to add its name to the long list of repurchase plans.
Nvidia reported stronger-than-expected Q2 results, extending its run as the world's dominant supplier of AI semiconductors. The company said that it recorded no H20 sales to China during the quarter.
A measure of aggregate equity positioning by Deutsche Bank has slipped over the last three weeks but remains modestly above neutral. The options market also is signalling concerns about the rally, at least in the near term.
The so-called skew for ETFs tracking the S&P 500 and the Nasdaq 100 is steep, while the same measure for ETFs trading the small-cap Russell 2000 is flat, according to Cboe Global Markets data.
The Nasdaq 100 seems to be on shaky footing given MACD bearish divergence, but 50 SMA could put a floor under the potential pullback.
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