Stocks closed mixed yesterday with the small-cap Russell 2000 and tech-heavy Nasdaq leading the way with 0.51% and 0.45% respectively. The S&P was effectively unchanged at 0.00%, while the Dow gave up 0.36%.

Big tech put in another solid day with Analog Devices up 1.92%, ARM Holdings up 3.19%, Advanced Micro Devices up 1.34%, Micron up 5.00%, and Sandisk up 6.82% to name a handful.

So far, it's looking more and more likely that last week's rate hike, along with a less hawkish tone and firmer economic outlook, might have been the bottom of the recent dip. And the beginning of the next leg up in the market.

And as I mentioned previously, I believe it coincides perfectly with the conclusion of the 3 month-long pullback and consolidation in the semiconductor/AI space. And with the Fed Announcement now behind us, I believe it's ready to breakout to new highs.

Let me also remind, as we head into Q4 (less than 2 weeks away), which is historically the best quarter of the year (since 1950, the S&P has gone up 79% of the time, with an average gain of 4.1%), not to mention the start of the next earnings season (stocks typically go up during earnings season), I am expecting a big rally into the end of the year. And when that's done. I'm expecting the same thing again in 2027.

In other news, yesterday's Richmond Fed Manufacturing Index slipped to -2 vs. last month's 4 and views for -1.

Today we'll get MBA Mortgage Applications, the PMI Composite report, and the Atlanta Fed Business Inflation Expectations.

President Trump gave a speech at the UN yesterday morning. Some comments were supportive to the market, including that China agreed with his administration in rejecting AI regulation. Others weighed, such as his comment that the U.S. could "annihilate the Islamic Republic" if negotiations fail. Although, oil was unfazed yesterday, falling by -2.7%.

Today through Friday (9/23-25), President Trump will be meeting with President Xi, first at Joint Base Andrews, then at the White House. There are no major breakthrough announcements planned, but there are expectations that they will announce some type of tariff-reduction package on roughly $30 billion in goods, possibly announce China's commitment to purchase U.S. agricultural products, and maybe announce some relief regarding easing export limits on rare earths.

With the market back on the upswing (the Nasdaq made new all-time highs yesterday, and the S&P is not far behind), the major indexes are all in the green for the week so far.

See you tomorrow,