Another week, another set of records smashed on Wall Street. The S&P 500 and Nasdaq hit fresh all-time highs while markets positioned themselves for what's looking increasingly likely: a Fed rate cut in September. But it wasn't all smooth sailing – hot inflation data and geopolitical drama kept traders on their toes.
π What's Happening
Records Keep Tumbling
The S&P 500 closed above 6,400 for the first time ever on Tuesday, while the Nasdaq notched multiple record highs throughout the week. The broader market rally was fueled by Tuesday's inflation report showing consumer prices rose 2.7% year-over-year – exactly in line with expectations and not scary enough to derail rate cut hopes.
Small Caps Steal the Show
While mega-caps grabbed headlines, small-cap stocks absolutely crushed it. The Russell 2000 surged nearly 3% on Tuesday and Wednesday alone, finishing the week up over 3% – massively outperforming large-caps. Rate-sensitive smaller companies…
