Yippee!!

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Recession... record inflation... an energy crisis... the threat of nuclear war... even trouble in Twitlandia... it seems nothing could sour market euphoria Friday as stocks capped off their best week since June, rallying hard into the close. 

The Dow piled on 750 points, or 2.5%, Friday to settle above the 31k mark. The S&P 500 added 2.4% and the Nasdaq finished higher by 2.1%. 

The three indices were up 4.9%, 4.7% and 5.2%, respectively, for the week... though they remain down 15%, 22% and 31% year to date. 

The proximate motivation for the rally seems to be optimism that the Fed may be within sight of “peak rates.” 

Here’s The Wall Street Journal: 

Fed Set to Raise Rates by 0.75 Point and Debate Size of Future Hikes

Some officials are signaling greater unease with big rate rises to fight inflation

Federal Reserve officials are barreling toward another interest-rate rise of 0.75 percentage point at their meeting Nov. 1-2 and are likely to debate then whether and how to signal plans to approve a smaller increase in December.

According to the Journal, some Fed officials are “signaling their desire both to slow down the pace of increases soon and to stop raising rates early next year to see how their moves this year are slowing the economy.”

Things in the real economy are getting so bad, in other words, that the rank and file at the Fed are beginning to get a little skittish. Is this Fed for turning? Not quite yet... but the murmurs are beginning... 

Remember the mantra: Cash now… Gold later.

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