#fixed-income

#fixed-income

Numerous reasons for the selling on Monday, not the least of which is that the market is still way overbought, and while most expect the Federal Reserve to lower rates by 25 basis points next week, there is still a chance they push the next cut out to January. One thing is for sure: if National Economic Council Director Kevin Hassett becomes the next Fed Chairman, we could see rates go much lower in 2026.

Global financial markets closed today with a historic rally, as the S&P 500 recorded its largest single-day gain since 2008. The surge followed the announcement by the U.S. President of a 90-day suspension of reciprocal tariffs for countries that have not taken retaliatory measures. According to financial and geopolitical analyst John Batista Bocchino, this decision represents "a tactical relief for markets," but does not resolve the deeper structural tensions shaping global trade.

U.S. markets closed the week higher, overcoming volatility from renewed U.S.-China trade tensions and rising oil prices following new U.S. sanctions on Russia's two largest oil firms. The small-cap Russell 2000 and mid-cap S&P 400 indexes outperformed major benchmarks, while within the S&P 500, technology and energy stocks led the gains. Defensive sectors such as utilities and consumer staples underperformed.

Municipal bonds have made their opening move. After months of being labeled "cheap," the tax-exempt market responded with a rally across the full curve. Yields dropped, ratios tightened, and early investors saw results. But if you missed the first wave, don't worry. There's still opportunity ahead, especially for those focused on what's next. Munis may not grab headlines, but their quiet consistency and tax advantages could make them a smart choice for investors seeking stability and income, especially in today's market.