The Stock Market Just Made History — Get Ready For Tomorrow

Summary

Key Points

• Geopolitical tensions escalated with traffic through the Strait of Hormuz falling to a three-month low due to a US naval blockade, and Houthi attacks targeting Saudi energy infrastructure, impacting oil markets. 1:45
• The S&P 500 reached a new record high of $70.8 trillion in market cap, crossing 7,800 for the first time, marking its ninth 100-point milestone this year. 2:02
• July PPI inflation came in below expectations at 4.7%, with a flat month-over-month reading, leading to a 65.4% chance of no rate change at the September FOMC meeting despite some Fed officials advocating for immediate rate hikes. 2:34
• The US recorded a record $432 billion July budget deficit, pushing the full-year 2026 deficit to nearly $1.8 trillion, with annualized interest costs on federal debt hitting a record $1.38 trillion, exceeding defense and Medicare spending. 2:54
• Tech sector breadth is improving, with 75% of S&P 500 stocks above their 200-day moving average, and Anthropic is reportedly in talks to acquire AI startup Dart for $6 billion ahead of its anticipated IPO. 3:38
• Despite overall market optimism, consumer debt delinquencies are rising, with credit card, student loan, and auto loan late payments near multi-year or record highs, signaling potential economic strain. 4:47
• Specific stock setups for potential upside include Netflix, buoyed by Bill Ackman's bullish outlook, and memory chip stocks like Micron and SanDisk, which are breaking out of recent downtrends following strong earnings reports. 8:37
• The energy sector, tracked by XLE, is attracting significant "big money" investment due to ongoing supply disruptions, geopolitical factors, and the US strategic petroleum reserve being at its lowest level since 1983. 10:06
• Palantir is showing strong upward momentum, having surged over 40% since its recent blowout earnings report, and is now testing a key resistance level at $180. 10:42