2. Weekly Market Recap: Key Movements & Insights

Powell's Message: Is the Market Ready to Break Out?

US equity funds experienced large inflows as investors grew optimistic about potential rate cuts, driven by easing economic growth concerns. This optimism reflects hopes that the Federal Reserve may shift from its tightening stance, potentially leading to a soft landing. However, caution remains as markets await further Fed signals.

Index Insights: How Major Benchmarks Performed Last Week

Price>MA10: 🟢

Price>MA20: 🟢

MA10>MA20: 🟢

Market Trend: 🔴 (When Price and Moving Averages are all green, also the Market Trend will be green and positive)

Trend Signal: 🟢

Price>MA10: 🟢

Price>MA20: 🟢

MA10>MA20: 🟢

Market Trend: 🔴

Trend Signal: 🟢

Price>MA10: 🟢

Price>MA20: 🟢

MA10>MA20: 🔴

Market Trend: 🟢

Trend Signal: 🟢

Small Caps Shine After Powell: Is the Rally Just Getting Started?

Following Powell's speech at Jackson Hole, the markets pushed higher, with a surprising leader—small-cap stocks, as evidenced by the IWM's major move. The rally has sparked optimism that small caps might be the play for the coming months, particularly if the Fed delivers on anticipated rate cuts within the next 6-12 months.

Our trend system has also shifted from Yellow to Green on the IWM index.

However, seasoned traders know that a healthy period of consolidation might be needed before charging toward new all-time highs. It’s all about patience and watching those small caps closely for now.

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Financial Sector Performance: Winners and Losers from Last Week

🏠 Real Estate and Healthcare 🌡️ Lead the Pack

This week, the Technology sector, which led the markets last week, found itself lagging, highlighting the volatile nature of market leadership. In contrast, the Real Estate sector emerged as the strongest performer, showcasing both impressive Relative Strength (RS) and overall weekly gains. Healthcare also made significant strides, proving resilient in uncertain times.

🧱 Basic Materials: Some Shine, Some Struggle 🌪️

Despite being the second-best performer, the Basic Materials sector has a low RS. However, the Building Materials and Lumber industries are shining, with RS values of 5.97 and 7.38, respectively. Gold continues to hold strong with an RS of 7.11, making it a bright spot in the sector.

⛽ Energy: The Market's Weak Link 🔻

Energy remains the weakest sector, not just this week but over the past month and three-month periods. The ongoing struggles stem from concerns over global demand, supply issues, and potential oversupply from OPEC, which have all contributed to its poor performance.

Residential Construction Tops the Charts: Weekly Industry Standouts with a Uranium Surprise

Residential Construction nailed this week with a 9.22% gain, proving that building homes still delivers. Right behind, Uranium had a glowing 6.75% surge, showing that nuclear energy was heating up. Health Information Services also saw a healthy 5.97% bump, highlighting the resilience of this digital age sector. With Aluminum and Broadcasting also making gains, it was a week of steady climbers and surprising winners, giving investors something solid to build on.

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Wall Street’s Winners and Whiners: Top Stocks of the Week

🍾 Best Performers

1. Applied DNA Sciences, Inc. (APDN) +711,24%
   Applied DNA surged after reporting significant progress in its biotechnology projects, sparking massive investor interest, in Monkeypox Theme.

2. Virax Biolabs Group Limited (VRAX) +361.86%
   Virax Biolabs skyrocketed due to promising developments in its infectious disease testing technologies, Monkeypox Theme.

3. GD Culture Group Limited (GDC) +295.65%
   GD Culture Group saw a sharp rise following news of a strategic partnership expected to boost revenue.

4. GeoVax Labs, Inc. (GOVX) +244.86%

   GeoVax jumped after announcing significant progress in its HIV and oncology vaccine programs, attracting speculative buying in the monkeypox Theme.

5. Portage Biotech (PRTG) +152.71%

   Portage Biotech soared after announcing encouraging data from its neuropeptide-based treatments, capturing investor attention.

🔻 Worst Performers

1. U-BX Technology (UBXG) -92.54%
   U-BX Technology plummeted after disappointing earnings, leading to a major sell-off.

2. Farmmi (FAMI) -57.21%
   Farmmi's stock fell sharply following weaker-than-expected financial results.

3. GD Culture Group (GDC) -29.75%
   GD Culture Group also experienced a significant pullback due to profit-taking.

4. Nuwellis (NUWE) -29.07%
   Nuwellis declined after reporting mixed results in clinical trials, spooking investors.

5. Treasure Global (TGL) -24.57%
   Treasure Global dropped amid concerns over its latest business model shift, leading to uncertainty.