Happy Tuesday! Wall Street’s narrative flipped in record time, as traders recalibrate around the possibility of several rate cuts before year-end. Read on to see where smart money is headed, and which industries are poised to benefit the most.

Also, discover why shares of American Eagle are soaring again thanks to Sydney Sweeney and President Trump. Is this just a temporary spike, or can the company keep the momentum going for a big turnaround? Read on to find out.

Plus, if you’re looking for a company making waves in telecom, fintech and AI, check out today’s sponsor.

In Today's Edition

• MARKET RECAP

• MARKET HEATMAP

• FIVE ZINGERS

• MARKET HISTORY

• ONE FOR THE ROAD

Markets Are Betting On Rate Cuts — These Five Sectors Could Win Big

The market just made a massive U-turn and the recent jobs report may have just rewrote the Fed’s playbook. In less than a week, we’ve gone from rates likely staying higher for longer to how many rate cuts the Fed will make before the end of the year.

Wall Street is scrambling to reset expectations — the markets now expect two cuts by year-end, with some experts calling for three. It’s a fast-moving pivot that has major implications, not just for interest rates, but for the sectors poised to benefit the most from a looser monetary environment.

But don’t be fooled, rate cuts don’t imply smooth sailing. While lower borrowing costs tend to lift equities, context is everything. Are we heading into a soft landing, or is a deep slowdown coming?

Read on to see where smart money is headed, and which five sectors are poised to benefit the most.

IQSTEL Inc. (NASDAQ: IQST), a dynamic holding company, reports that it is on the path to reach $1 billion in revenue by 2027.

For the first half of 2025, it had revenue of $128.8 million and expects to reach a $400 million annualized revenue run rate in Q3. It's also reducing debt, striking partnerships that get it into high-margin verticals and is getting noticed by Wall Street, with Litchfield Hills Research recently initiating coverage with a buy rating and an $18 price target.

Not bad for a stock that is trading at around $8 a share. Its secret sauce? An M&A focus in telecom, fintech and AI. To learn more about this growing tech company, click here.

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Yesterday: U.S. indexes rebounded sharply Monday, recovering most of Friday’s losses as weak jobs data is fueling expectations of interest rate cuts dropping sooner than previously thought. The S&P 500 snapped a four-day losing streak to finish up 1.5%, while the Nasdaq surged nearly 2%. The 10-year Treasury yield fell to 4.20% — its lowest level in three months — and oil fell after OPEC+ announced a full reversal of its 2023 output cuts. Labor market concerns persisted after the U.S. added just 73,000 jobs in July, with sharp revisions to prior months. Markets are now pricing in a 90% chance of a Fed rate cut in September, with another by year-end. Earnings season remains solid, with S&P 500 earnings on track to grow 8% vs. expectations of 4%.

On Our Radar: Analysts will be watching several reports this morning, including the U.S trade deficit, ISM services and the S&P final U.S. services PMI. On the earnings front, Advanced Micro (AMD), Super Micro (SMCI), Rivian (RIVN) and Lucid (LCID) will headline a slate of major earnings reports after the market close today.

Joby soared more than 20% after announcing big plans to expand its electric air taxi footprint. Meanwhile, read on to see why shares of ON Semiconductor tumbled 15% despite meeting earnings expectations. But those weren’t the only companies making big moves…

Discover how the market is moving with our interactive heatmap — filter by market cap and zoom in for deeper insights. Click any box to explore specific sectors or assets in detail.

While most traders are bracing for a September correction, Tom Gentile sees signs it’s already starting. This Wednesday at 6:00 p.m. ET, he’ll reveal the pattern-based trades forming now — and how to position for maximum upside before the rest of the market catches on. Don’t miss this free live session.

On This Day In 1899…

Henry Ford founded his first company, the Detroit Automobile Company, marking his initial venture into the automotive industry. Backed by a group of investors, the company aimed to build affordable, mass-produced vehicles. However, it struggled with high costs and limited production, ultimately folding in 1901. Despite its failure, the experience laid the groundwork for Ford’s later success with the Ford Motor Company and the revolution of modern manufacturing.

QUOTE OF THE DAY

“The four most dangerous words in investing are: ‘this time it’s different.”

— Sir John Templeton

Trump Says Sweeney's Ad Is 'HOTTEST' — American Eagle Stock Goes Wild

American Eagle and Sydney Sweeney are back in the spotlight.

Shares of the retailer soared more than 24% on Monday after President Trump took to social media to call Sydney Sweeney’s new ad campaign with American Eagle the “HOTTEST out there.”

But even with that surge — in addition to the rally just two weeks ago when Sweeney's campaign was announced — shares of American Eagle are still down 20% on the year. The million-dollar question becomes: is this latest rally a fleeting reaction to social media hype, or the spark that could revive American Eagle’s long-term trajectory?

With Trump’s endorsement and megaphone now in the mix, the retailer continues to teeter between becoming the next meme stock, or staging a legitimate retail comeback. The momentum is real — but is it sustainable?

Read on to find out.

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