Shesa's Investment Blog

First of all, CONGRATULATIONS to Indian Cricket team for winning the Asia cup!! Stock Market last week This September has been pretty good so far comparing to previous years. Only two more trading days left. Last week the stock market, particularly Nasdaq pulled back a little bit.  The U.S. stocks hit records but dipped weekly: S&P 500 -0.3% ,  Nasdaq -0.7% to 22,484.07; Dow -0.2% to 46,247.29; Russell 2000 +2.16% .  Fed’s Powell speech signaled 1-2 more 2025 cuts but indicated that  a challenging economic situation with inflation risks from tariffs and employment risks from a weakening labor market.  He noted high stock prices contribute to loose financial conditions but won’t drive Fed policy. The stock market is not in a bubble like 1999 .com maniac but I quite did not understand the statement made by Powell about "high stock price". Agreed, some stocks went too high but if we see overall market it's no where in the bubble territory.  Powell suppo...

Welcome to Shesa's weekly Stock market updates This September has been fabulous thus far reversing the trend of the worst month. Last week, the indexes posted strong gains. The S&P 500 and Dow are up 1.2% and 1%, respectively, while the Nasdaq is up 2.2% . The Russell 2000 gained 2.2% , notched its seventh weekly advance all-time high first time since 2021. The Nasdaq has gone up 5.48% and S&P has gone up 3.16% this month.  Why did the market go up?  On Wednesday, 9/17, the Federal Reserve did cut its key interest rate by 0.25% for the first time since December, targeting labor market weakness like rising unemployment. The Fed fund rate stands at 4%-4.25% . Also Fed Chairman indicated that more cuts expected in 2025 ; economy growth forecast up to 1.6%; one dissent on policy; signals easing cycle amid steady inflation. Intel (INTC) shares rallied about 26% after   Nvidia  ( NVDA )  said it   will invest $5 billion in the chipmaker ...

Welcome to Shesa's weekend update Last week, the U.S. stock market indexes  posted gains despite mixed economic data. The S&P 500 rose  1.75% , closing at 6,584.29, with a record high of 6,587.47 on Thursday, NASDAQ surged  2.92% , ending at 22,141.10, achieving five consecutive record closes, driven by AI optimism and big run on  Oracle  and  Tesla  stock, followed by anticipations of Fed rate cuts this week. The Dow gained 1.02%. Weak labor market data, including a  911,000 downward revision   in jobs  from April 2024 to March 2025 was a big blow. The jobless claims reached 263,000 (highest since October 2021). Despite these bad data the stock market had a fantastic week fueled by rate-cut hopes. Inflation data was mixed: August  CPI rose 2.9%  year-over-year, above the Fed’s 2% target, but  PPI  unexpectedly declined 0.1% month-over-month, up  2.6%  YoY.  Gold hit a record $3,681 per ounce, up 10...

  By Shesa Nayak Welcome to Shesa’s Blog U.S. Stock Market Update   The stock market had a reasonably good August despite some pullback at the end of the month. For the month of August, NASDAQ was up 1.6% for the month, S&P 500 was up 1.53% , fourth straight positive month and DOW soared 3% for the month. Though September is the worst month in the stock market, so far the S&P 500 is up 0.33%, and Nasdaq is up 1.14%. The Q2 earnings season is over. Nvidia and AVGO had another great quarter and fabulous guidance. It reminds us that AI is well and alive and will remain so in the foreseeable future . Having said that, it makes sense to be vigilant in September and possibly early October. September in general does not have good history for the stock market, so we have to strategize our investment decision.  Economic Gross domestic product ( GDP ) jumped 3.3% for the second quarter. All the inflation numbers viz. CPI, PPI and PCE have gone up, consumer spending...