Powell Saves the Day (For Now) – But Earnings Are the Real Test

What a rollercoaster last week was.

Early in the week, stocks started to wobble after Walmart said shoppers are feeling the pinch from inflation and trading down to cheaper options. That triggered a wave of pending reversal signals across the S&P 500, Nasdaq, Dow, and Russell 2000. Not exactly the kind of start bulls wanted.

Then Jerome Powell stepped in. While he didn’t promise a September rate cut, his comments were more dovish than expected — enough to calm nerves and flip the switch back to risk-on. Markets bounced hard into Friday and clawed back to last week’s highs.

But don’t let that rebound fool you — the warning signs haven’t gone away.

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Why It Still Matters