Narrative remains bullish

Show notes

Markets leaned dovish after Jerome Powell’s latest speech, as the Federal Reserve (Fed) Chair refused to commit to a rate cut at next month’s meeting. Powell highlighted the downside risks to the jobs market and the upside risks to inflation, painting a mixed picture that calls for careful adjustment. Still, bond markets reacted with lower yields and traders now price a 94% chance of an October cut.
Equities pulled back from record highs, but the underlying story hasn’t changed: the Fed is easing into a resilient economy, corporate earnings remain strong and inflation is sticky but manageable. In Europe, PMIs surprised to the upside, while UK data disappointed. Meanwhile, Alibaba surged on fresh AI investment news, gold set new records, and oil rebounded on geopolitics and inventory draws.
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