🚨 Powell Speaks - Markets Brace for Impact

😎 Market Vibes

Markets are showing early resilience this morning after Wednesday's strong session pushed major indices to fresh records. Futures point to a modest open as investors await key earnings reports from PepsiCo and Delta Air Lines, along with a highly anticipated speech from Fed Chair Jerome Powell that could provide clues about the central bank's next moves.

🔥 Earnings in Focus

PepsiCo Beats Estimates, But Revenue Growth Slows

PepsiCo reported Q3 earnings of $2.29 per share this morning, slightly topping Wall Street's expectations of $2.27. However, the picture wasn't entirely rosy. Organic revenue growth came in at just 1.3%, falling short of analyst forecasts as American consumers pulled back on sugary sodas and processed snacks.

The company's results highlight a broader trend: health-conscious shoppers are changing their purchasing habits, pressuring legacy food and beverage giants. Despite beating on earnings, the tepid revenue growth signals potential headwinds ahead.

Our partners at Stock Earnings are tracking the most important Q4 opportunities as earnings season heats up. With volatility likely to spike through year-end, their team has identified 7 stocks quietly positioning for a massive year-end run. This isn't just another list; it's a strategic blueprint for what's next. Get the 7 Stocks to Own for Q4 Now.
_{^{(**By clicking this link you agree to receive emails from StockEarnings and our affiliates. You can opt out at any time.  Privacy Policy. **)}}

✈️ Delta Delivers Strong Quarter, Sees Revenue Improvement

Delta Air Lines crushed expectations this morning, posting strong Q3 results that sent shares climbing over 5% in premarket trading. The airline's CEO struck an optimistic tone, noting "significant improvement" in the revenue outlook as travel demand remains robust despite economic uncertainty.

With Q4 traditionally being a strong seasonal period for airlines, Delta's guidance will be critical in determining whether the stock can sustain its momentum. Year-to-date, Delta shares are down 5.2%, lagging the broader market's 15% gain.

💰 Gold Hits Historic Milestone: The $4,000 Breakthrough

Gold made history this week, surging past $4,000 per ounce for the first time ever on Tuesday before settling near $4,035 today. The precious metal has climbed an astonishing 51% year-to-date, driven by a perfect storm of factors: a weakening dollar (down 10% in 2025), persistent inflation fears, escalating geopolitical tensions, and aggressive central bank buying.

Bridgewater Associates founder Ray Dalio made headlines at Tuesday's Greenwich Economic Forum, recommending investors allocate "something like 15% of your portfolio in gold." His reasoning? Traditional debt instruments are "not an effective store of wealth," and gold remains "the one asset that does very well when the typical parts of your portfolio go down."

Bank of America struck a more cautious tone, warning clients that gold faces "uptrend exhaustion" and could see consolidation or correction in Q4. The technical indicators suggest gold's RSI has pushed above 80 - levels that historically preceded brief consolidation periods.

Our partners at ProsperityPub have been following the "Great Gold Squeeze" closely. After years of pushing tech stocks and bonds, major institutions like Goldman Sachs and UBS are raising their year-end gold price forecasts amid inflation fears, geopolitical tensions, and trade wars. Their analysis reveals why we could be at the very beginning of the “Great Gold Squeeze.”
_{^{By clicking the link above you agree to periodic updates from ProsperityPub and its partners (privacy policy)}}

🎯 Fed Watch: Powell Speech Looms

All Eyes on the Chairman

Fed Chair Jerome Powell takes the stage early Thursday morning, and markets are hanging on every word. With the government shutdown delaying crucial economic data - including the September jobs report - investors are starving for guidance on the Fed's next moves.

Markets are currently pricing in a 95% probability of another rate cut at the Fed's October 28-29 meeting, according to the CME FedWatch Tool. A second similar-sized cut is expected in December. The ongoing shutdown adds another layer of uncertainty, as policymakers are forced to rely on secondary, non-government data to gauge economic conditions.

Powell's comments could provide critical insights into how the Fed is interpreting recent inflation data and whether the central bank sees the shutdown as a material risk to economic momentum.

When the Fed cuts rates, it often signals the start of significant market shifts. Our partners at ProsperityPub want to show you the #1 play they believe traders need to know to try and take advantage of this massive shift. Go here now for their full brief.

🤖 AI Trade Under Scrutiny

Oracle's Cloud Concerns Ripple Through Tech

The AI-fueled rally that's powered markets to new highs is facing its first real stress test. Oracle's reported profit margin issues in cloud computing sparked broader questions about AI return on investment, sending ripples through the semiconductor sector earlier this week.

The concerns center on a fundamental question: Are companies actually making money from their massive AI investments, or is this another bubble waiting to pop? The skepticism comes at an interesting time, as institutional money continues flowing into AI-adjacent names and the technology sector just notched fresh closing highs.

Our partners at Crypto 101 see parallels between AI skepticism and the early days of crypto adoption. While mainstream markets wrestle with AI profitability questions, they're tracking an AI token currently trading under $5 that analysts are ultimately targeting for $85. Discover their #1 AI Crypto for the market right now (before the next big move).

📊 Market Internals: Strength Beneath the Surface

Despite Tuesday's pullback snapping a seven-session win streak, Wednesday's action showed renewed momentum. All three major indices not only recovered but pushed to new all-time intraday and closing highs. The S&P 500 climbed 0.58% to 6,753.72, with information technology, utilities, and industrials sectors all reaching fresh peaks.

The breadth of the rally is notable. It's not just mega-cap tech driving gains - it's broad-based participation across multiple sectors. The Nasdaq advanced 1.12% to finish at 23,043.38, while even the Dow managed to close essentially flat despite some sector-specific headwinds.

Small-cap and mid-cap stocks have been trading more cautiously, suggesting some defensive positioning by institutional players. But the overall tone remains constructive as long as economic data continues to support the soft-landing narrative.

Our partners at ProsperityPub track daily market flows through their New Money Crew - Graham Lindman, Lance Ippolito, and Nate Tucci. Every day, they track the top 3-5 stocks based on scanning historical data in real time… And send the #1 trade from that hit list directly to their inner circle. Tap here to get today’s scans and the #1 trade setup.

🎲 The Bottom Line

Today's market setup shows cautious optimism. Earnings are coming in solid (if not spectacular), the Fed remains accommodative, and technical indicators show strength across major indices. But risks are mounting: gold's parabolic rise signals underlying anxiety, the AI trade faces scrutiny, and Washington's dysfunction could spiral into real economic consequences.

The backdrop? A Fed that's cutting rates, a government that's shutdown, and indices at all-time highs despite growing uncertainty. Powell's speech could be the catalyst that determines whether markets rally into year-end or see that oft-predicted Q4 correction finally materialize.

As always, this is market commentary and entertainment - not a roadmap for what anyone should do with their money.

✌️ Thanks for vibing with us.

⚠️ WARNING: Market data is subject to rapid change. Verify current information before making trading decisions.

_{^{Disclaimer: This newsletter is for informational and entertainment purposes only and should not be considered financial, investment, legal, or tax advice. The content represents opinions and observations about market activity. Always conduct your own research and consult with qualified professionals before making any financial decisions. Past performance does not guarantee future results. Market commentary is not a recommendation to buy, sell, or hold any security.}}

DISCLAIMER: Stocks and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stocks and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell stocks or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in the linked report. The past performance of any trading system or methodology is not necessarily indicative of future results. All trades, patterns, charts, systems, etc., discussed in the linked report are for illustrative purposes only and not to be construed as specific advisory recommendations. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. For full disclaimer information, click here.