U.S. investors, while fully expecting a 'skip' by the FOMC next week are starting to understand that a skip or even a pause does not necessarily mean an end to the policy tightening cycle or a change in trajectory.
I may be guilty of wishful thinking, but it looks like the market is finally moving beyond the Federal Reserve.
Does this scream 'Hike!'? It depends on whether you're the Fed, a bull or a bear.
And the likelihood that inflation will be persistent should keep interest rates higher for longer, which will have multiple negative economic consequences.
Plus, a couple major stock indexes appear to be in better technical shape.
The bulls are focused on stocks that are benefiting from AI while the bears argue these few names don't fix the other economic issues that are still lurking.
There are two areas I would allow for absurd valuations right now: Anyone who sells what buyers need to integrate AI into their own offerings and those engaged in cybersecurity.
About 90% of stocks are still struggling, but many market players are celebrating.
It involves people pocketing their savings from lower gasoline prices so that the economy cools and the Fed doesn't need to raise rates again.
Plus, the Nasdaq and S&P 500 did not do justice to Thursday's market action as there were far more losers than winners on the day.