Rate Cut Hopes Spark Buying

Hello Hustlrs 👋,

Welcome to The Global Hustlr, your weekly guide to Wall Street’s biggest stories, simplified for Global Investors. 

Each issue breaks down the latest market moves into practical tips you can use to grow your wealth—no matter where you call home.

Let’s dive into this week’s market updates.

☕️ Quick Brew: This Week’s Market Pulse

Here’s your executive summary in 60 seconds:

• Tech Pullback: Big-name tech stocks like Nvidia, Palantir, and AMD saw profit-taking after a strong rally.
  

• Rotation: Money moved into utilities, healthcare, and defensive names—sign of balance, not fear.
  

• Powell Hints: Fed Chair signaled a September rate cut is likely. Markets loved it.

• Small-Caps Win: The Russell 2000 had its best day since November. Cheaper, rate-sensitive stocks outperformed.

• Global Politics: Trump met Zelensky and EU leaders after urging Ukraine toward peace in talks with Putin.

Investor takeaway? The US market is shifting gears, but opportunities remain hidden in plain sight.

🔑 The Big Stories

1. Tech Rotation Hits Selective Targets

This week was a rollercoaster.  

Early in the week, tech giants cooled off after months of soaring. 

Don’t panic. This is not panic selling. It’s rebalancing at near-record highs.

Investors simply locked in profits as stocks stayed near all-time highs. 

By Friday, a new energy surged as talk of interest rate cuts swept through Wall Street. 

Small companies soared, old favorites rotated, and talk turned to what happens next.

📌 Why it matters: When leaders cool off, capital looks for underpriced sectors. This creates chances in areas like utilities, healthcare, and small-caps.

2. Stocks Surge as Powell Hints at a Rate Cut

• The US Fed Chair Jerome Powell added fuel to the fire on Friday.
  

• He said rates could start coming down as early as September.
  

• Markets love lower borrowing costs. It boosts companies and consumer confidence.
  

• The S&P 500 surged to close the week near historic highs.

📌 Why it matters: A rate cut lowers financing costs for businesses and mortgages. It’s like giving the whole economy a lighter backpack to run with.

3. Small-Caps Lead the Charge

• The Russell 2000 jumped—its best single day since November.

• Smaller companies gain when borrowing gets cheaper.

• Investors shifted money from mega-cap tech into value plays.

📌 Why it matters: This tells us the rally is broadening. It’s not just the giant tech names driving gains anymore.

4. Politics in the Mix: Trump Meets Zelensky, EU Leaders

• Trump hosted Zelensky with heavy hitters: Merz, Macron, Meloni, Von der Leyen, and NATO’s Rutte.
  

• This came after a Putin summit where Trump urged Ukraine toward a peace path.

📌 Why it matters: Markets like political stability. Progress on peace could reduce risks around energy prices and Europe’s economy.

5, Palantir's share price has not had a good week

Palantir just logged its 6th straight daily loss — the longest losing streak since April 2024.

Recent media reports suggest the drop in share price is due to concerns over AI market bubble, bearish short-seller reports, recent insider selling, an unjustifiably high P/E ratio, etc.

🤔AI stocks may be the future, but volatility is the price of admission.

Correction or not, could these be buying opportunities that are presenting themselves for most investors? Time will tell 

6. Nvidia Earnings Are Next Week

• Nvidia reports next Wednesday.

• After the tech pullback, results here could set the tone.

• Strong earnings may reignite the AI rally; weak ones could deepen the rotation.

📌 Why it matters: This stock has been the face of AI investing. What happens with Nvidia can shape sentiment for the entire tech sector.

💡 What Does This Mean for Your Investments?

Now, let’s bring this home. If you’re an African professional investing in the US market, here’s how the week’s stories could play out for you:

1. Watch Sectors That Benefit From Rate Cuts

If the Federal Reserve does cut rates in September, it could favor several areas:

• Mortgage REITs: These offer high yields and trade at discounts after years of rate hikes. If rates fall, these stocks tend to recover.
  They remain risky and volatile, so only consider these if you have a longer time horizon.
  

• Small-Cap Value Stocks: With lower rates, small firms with strong business models and floating-rate debt enjoy cheaper funding.
  The Russell 2000’s surge shows funds are moving in already.

🚀 Action Step: Start researching Russell 2000 ETFs (IWM, VB) or global small-cap funds accessible on platforms like Interactive Brokers, Bamboo, or Chaka (depending on your country).

2. Diversify Beyond AI Giants

Yes, AI stocks like Nvidia are exciting. But don’t park all your money there.

Profit-taking is proof no rally lasts forever.

Balanced investors spread across healthcare, utilities, and consumer sectors.

If Nvidia’s earnings disappoint, you don’t want your whole portfolio sinking with it.

🚀 Action Step: Rebalance. If tech makes up over 50% of your portfolio, shift some into defensive ETFs like XLV (Healthcare) or XLU (Utilities).

3. Politics Can Impact Your Pocket

Peace talks in Ukraine may sound far away from Lagos, Nairobi, or Cape Town, but guess what?

• Peace could mean lower oil and gas prices.

• And it calms global inflation—which keeps markets stable.

🚀 Action Point: Track commodities. If oil falls, expect consumer spending to rise in the US/EU, pushing stocks up.

4. Preparing for Nvidia Earnings

If you own Nvidia, here’s a practical game plan:

The Street is looking for big things from Nvidia’s earnings report. Most important is the general expectation that AI demand is accelerating.

Analysts even expect news around Nvidia’s China business to be bullish for the stock

Investors are concerned that Nvidia, at an 8% weighting of the S&P 500, can’t capture a higher weighting because there is no precedent

🚀 Action Step: Average in slowly instead of making a giant bet before

📣 Final Sip

Markets rotated this week, but that’s healthy. Don’t be spooked. This is how bull markets refresh and open doors to new winners.

The coming month could be pivotal with Fed decisions and Nvidia earnings in play. Stay nimble, stay diversified, and always think long-term.

🚀 Join the Movement

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Until next week,
The Global Hustlr Team

This Newsletter is for informational purposes only and should not be taken as specific investment advice. Investors should base their decisions on their individual investment goals and financial circumstances. Although the information is believed to be accurate, it is not guaranteed and may change without notice. Past performance does not predict future results.