Happy Wednesday! The rally that even some fund managers doubted just hit another record high. With almost every sector posting gains and recession fears fading, Wall Street’s mood is shifting fast. So what happens next, and how much higher can the markets go? Read on to find out.

Also, in an unprecedented move, Wall Street rallied to record highs in the face of conflicting inflation data, leaving many wondering what comes next. Dive in to see how this could impact your investment strategy.

Plus, if you’re looking for an innovative company making strides in mental health, check out today’s sponsor.

In Today's Edition

• MARKET RECAP

• MARKET HEATMAP

• FIVE ZINGERS

• MARKET HISTORY

• ONE FOR THE ROAD

Stocks Say No Recession: S&P 500 Earnings Crush Expectations

The S&P 500 and Nasdaq both set another record on Tuesday, making it one of the most hated rallies for investors sitting on the sidelines. For those hoping for a big pullback, you’re likely going to be waiting a little longer.

And while 91% of fund managers say U.S. equities are overvalued, the market continues to say otherwise. Instead of cracks under the weight of high valuations, or recession fears, companies in the S&P 500 just delivered their strongest earnings surprise in years, blowing past expectations and shaking up the market narrative in the process.

This isn’t just a few tech giants pulling the weight, as 10 out of 11 sectors posted growth, with revenue beats hitting levels we haven’t seen since 2021. Meanwhile, recession chatter has virtually disappeared from boardrooms.

How high do market veterans see the rally going? Read on to find out.

NRx Pharmaceuticals Inc. (NRXP), a clinical-stage biopharmaceutical company developing therapeutics based on its NMDA platform for the treatment of central nervous system disorders, specifically suicidal bipolar depression, is hitting milestones that aren’t lost on some investment firms on Wall Street.

D. Boral Capital and BTIG reiterated their buy ratings on NRx given the progress the company is making with its two drugs (NXT-101 and NXT-100) and its network of clinics to offer ketamine, transcranial magnetic stimulation (TMS) and other lifesaving therapies.

Both investment firms have at least double-digit growth expectations on NRx’s stock, if not more. Potential catalysts include FDA drug approvals later this year and a regulation that could provide a clear edge over competitors.

NRX-100 recently received Fast Track designation for treating suicidal ideation in depression, including bipolar depression, supported by FDA-submitted trials showing significant, meaningful reductions and expanding its addressable population tenfold.

To learn more about NRx Pharmaceuticals, click here.

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Yesterday: U.S. indexes rallied Tuesday, with the S&P 500 and Nasdaq both closing at record highs after a cooler-than-expected inflation report, strengthening expectations for rate cuts by the Federal Reserve. Headline CPI rose 0.2% month-over-month, holding the annual rate at 2.7%, while core CPI increased 0.3% on the month and 3.1% year-over-year. Markets responded by pricing in a more than 90% chance of a 25 basis point rate cut in September. Treasury yields edged lower, while the U.S. dollar slipped against major currencies. Also, startup Perplexity AI submitted a surprise $34.5 billion bid for Google’s Chrome browser, and IPO darlings CoreWeave and Circle tanked after reporting earnings.

On Our Radar: Analysts will turn their attention to crude oil inventories, as well as several speeches from Fed Presidents (Tom Barkin, Austan Goolsbee and Raphael Bostic), throughout the day. On the earnings front, all eyes will be on Cisco (CSCO), which reports after the market closes today, followed by Deere & Company (DE) and JD.com (JD) which will report before the market opens on Thursday.

Airline companies soared after July inflation data showed a spike in airline fares. Shares of Delta, United, and American rallied more than 10% on the news. But those weren’t the only big movers of the day. Here’s a look at what’s moving the market.

Discover how the market is moving with our interactive heatmap. Filter by market cap, or click on any box to explore specific sectors or assets in more detail.

Tonight’s event breaks down the exact pattern that uncovered 1,000+ breakout trades, including five big wins in just the last quarter. You’ll get special access to the updated Q3 watchlist and learn exactly how to trade the market’s next moves.

On This Day In 1918…

Bayerische Motoren Werke AG (BMW) was established as a public company in Germany, laying the foundation for one of the world’s most iconic automotive brands. Originally focused on aircraft engines, BMW transitioned to motorcycles and later automobiles, becoming known for engineering precision and performance. Over the decades, the company evolved into a global leader in luxury vehicles, with its roots tracing back to this pivotal post–World War I moment.

QUOTE OF THE DAY

“You make most of your money in a bear market, you just don’t realize it at the time.“

— Shelby Davis

Wall Street Shrugs Off July Inflation Report, What Do They Know That You Don’t?

Despite mixed signals from the latest inflation data, Wall Street is sending a powerful message: recession fears might be overblown.

July’s inflation report threw a curveball to investors with headline numbers easing, but core inflation creeping higher. Typically, the market sells off under those conditions — especially with tariffs still unresolved — but on Tuesday, Wall Street did the opposite.

Read on to see what changed, as well as more insights and analysis to help protect and grow your portfolio.

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