How we navigated the strong market ahead of the big Fed meeting

It was a stellar week for stocks as Wall Street speculated on the Federal Reserve’s upcoming and highly anticipated interest rate decision and what comes next. The S & P 500 and Nasdaq each hit multiple record highs since Monday. A mixed bag of economic data, along with a blowout earnings report from Oracle , paved the way for the market’s gains as central bankers prepare for their two-day policy meeting that concludes on Sept. 17. The Nasdaq closed at a record on Friday. The S & P 500 finished slightly lower after reaching new intra-day highs earlier in the day. For the week, the S & P 500 gained 1.6% and the Nasdaq rose 2%. Late Tuesday, Wall Street first fixated on Oracle’s astonishing fiscal 2026 first quarter report . Management shared that the company’s remaining performance obligations, a measure of contracted revenue that has not yet been recognized, skyrocketed 359% from the year prior. Oracle stock closed at a record high Wednesday, jumping nearly 36% in the session that followed the release. Shares lost steam on Thursday and Friday, but still managed a weekly gain of 25.5%. The release raised more than just Oracle’s stock price. Shares of chipmakers like Club holdings Nvidia and Broadcom jumped in tandem as the software vendor’s huge cloud backlog signaled continued demand for AI infrastructure. Nvidia and Broadcom shares rose 4% and 10%, respectively, on Wednesday, and nearly 6.5% and almost 7.4% for the week. Economic data was also a big focus for investors this week. On Wednesday, investors grew more confident of an interest rate cut after the producer price index (PPI), a key wholesale inflation measure, fell more than expected in August. PPI, which tracks input costs across an array of goods and services, declined 0.1% last month. That’s compared to a Dow Jones estimate of a 0.3% increase. As a result, the S & P 500 and tech-heavy Nasdaq finished Wednesday’s session at records. Thursday complicated matters for policymakers, however, after prices for consumers accelerated more than expected in August. The consumer price index (CPI), a widely followed gauge of retail inflation, recorded a seasonally adjusted 0.4% increase for the month. That’s the biggest CPI gain since January and surpassed Dow Jones estimates of a 0.3% rise. During that same session, weekly jobless claims came in at their highest level in almost four years. This showed signs of further softness in the U.S. labor market and potential cracks in the country’s economy, leaving the door open for the Fed to lower rates more aggressively into the end of the year. Despite the murky readings, the jobs report seemed to overshadow CPI as traders priced in a great probability of a reduction for the first time since December 2024. .SPX .IXIC YTD mountain S & P 500 (SPX), Nasdaq Composite (IXIC) year-to-date performances The Club capitalized on the market’s moves with five trades since Monday. The Club bought Boeing twice this week. On Monday, we initiated a position in the aerospace giant after last month’s exit of Coterra Energy left us with an opening in the portfolio. The Club bought more Boeing on Friday as shares continued to decline. When starting a new position, we recommend that each additional purchase be at a lower price point than the previous one. That will help reduce the overall weighted average cost basis. The Club invested in Boeing, in part, because the Trump administration’s trade policies and subsequent tariff deals should strengthen demand for jets. The Club set a price target of $275 apiece on the stock, representing 27 % upside from Friday’s close. On Tuesday, we trimmed some of our Goldman Sachs position into strength as shares reached record highs. The sale, however, does not reflect any change in the Club’s thesis. We used the cash proceeds to purchase more Texas Roadhouse . Shares of the steakhouse chain have declined significantly since its earnings report in early August – a reaction we view as overdone. Shares saw weekly gains of nearly 5.7%. The Club bought more Honeywell shares Thursday in hopes that the Fed’s expected cuts will translate into a pickup in the economy, which would lead to more manufacturing and demand for the industrial conglomerate’s offerings. Plus, it’s a good time to buy as Honeywell stock has lagged compared to its peers in the runup to its split into three publicly traded companies. Some on Wall Street call this “spin purgatory ,” and it often has little to do with underlying fundamentals. The stock lost more than 1% for the week. WFC GEV YTD mountain Wells Fargo (WFC), GE Vernova (GEV) year-to-date performances Additionally, we took note of commentary from top executives at two of our portfolio companies: Wells Fargo and GE Vernova . On Tuesday, Wells Fargo CFO Mike Santomassimo…