Wall Street closed out the highly anticipated Federal Reserve week with stocks notching fresh all-time highs as prospects for more rate cuts bolstered the outlook for corporate earnings.
“Discussion of ‘bubbles’ has officially entered the market dialogue – if the S&P 500 is in one, how far to go – and intensified with September’s rally bucking seasonal volatility,” said Julian Emanuel, strategist at Evercore ISI, in a note Sunday. “But a bubble has a long way to go.”
Evercore sees 25% odds of a bubble scenario — SPX 9,000 by year-end 2026 — versus 7,750 base case.
Trump on Friday also called for a sweeping overhaul of the H-1B visa program, including a $100,000 application fee. The move rattled companies that have long depended on the program to recruit global talent, particularly in California’s tech-heavy economy, where employers rely on skilled computer programmers, data analysts and engineers.
The move may inject fresh uncertainty into global markets. Pressure may be most acute in India and its $280 billion IT sector that’s already grappling with sluggish growth and tensions between Prime Minister Narendra Modi and Trump.
It’s “hard to escape the idea it’s not aimed at Modi and India,” said Tony Sycamore, an analyst at IG in Sydney.
